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Fiscal court authorizes county judge to finalize Lafayette Hospital financing shift up to $10 million
Summary
The Ohio County Fiscal Court authorized the judge to sign financing documents moving a phase 2 hospital loan from USDA to a private financier (identified in discussion as Compier) for up to $10,000,000; court members said the change was prompted by federal loan timing and rising interest rates.
The Ohio County Fiscal Court voted on Jan. 28, 2025, to allow the county judge to sign financing documents to move Lafayette Hospital’s second-phase borrowing from the U.S. Department of Agriculture to a private lender (referred to in discussion as Compier), up to $10,000,000.
Court members said the switch followed a change in circumstances with the USDA loan: the USDA representative told county officials the loan could not be closed until phase 2 was complete, and rising interest rates would have increased the cost of borrowing. Moving the remaining financing to a private lender was presented as a way to secure a better rate for phase 2 and allow phase 1 to close so payments could begin.
Why it matters: The financing supports a multi-phase expansion and renovation of Lafayette Hospital. Court members framed the vote as necessary to protect the hospital’s financial viability and to keep the facility under local control.
Details of the financing motion County discussion identified the financing ceiling as “up to $10,000,000” and described phase 1 as new construction and phase 2 as renovation requiring partial vacating during work. Officials said the USDA rate on the closed phase 1 loan had been very favorable (about 2.25 percent on the outstanding balance) but that USDA’s restrictions and the timing of higher interest rates made it impractical to keep the remainder with USDA.
The judge asked for a motion authorizing the county to sign papers with the private lender; members moved, seconded, and the motion carried. No detailed vote tally was recorded in the meeting transcript.
Court members said the hospital’s phase 2 work would include interior renovation and new services and that officials were optimistic about the project’s long-term benefits.
Ending The court authorized the judge to proceed with the financing documents to secure up to $10 million for Lafayette Hospital’s phase 2; the transcript records the motion and the court’s approval but does not include a detailed roll-call vote in the public minutes excerpted at the meeting.
