Springdale council approves revenue bonds for Arkansas Children—s Northwest expansion

Springdale City Council voted unanimously to authorize the Springdale Public Facilities Board to issue tax-exempt revenue bonds of up to $24,000,000 to help finance an expansion of Arkansas Children—s Northwest.

At a required public hearing, Shep Russell of Friday, Eldridge & Clark, bond counsel, told the council that the public facilities board issues tax-exempt bonds on behalf of nonprofit hospitals so investors can buy at a lower, tax-exempt yield and that the city and facilities board do not take on an obligation to repay the debt. He cited the Public Facilities Boards Act (ACA 14-1-37-100) and said local ordinance authority also permits the action.

Hospital administrator Dr. Rustin Morris presented detailed plans and timelines for the expansion. He said the project will increase the inpatient unit from 25 to 40 beds (a 40% increase), expand operating rooms from five to seven, add a gastroenterology suite and procedure space, move infusion services to be adjacent to hematology/oncology clinics, and relocate physical therapy and phlebotomy to the main entrance for better patient access. The project was described as roughly an $82.7 million expansion, with donors and hospital revenues covering most costs and about $24 million to be financed by the bonds. Morris said construction began in April 2024 and that portions of the project could be occupied as early as this December, with inpatient rooms available in about a year and project completion expected in 2026.

Council members and several community supporters expressed strong approval of the plan and of keeping more pediatric care in Northwest Arkansas rather than sending families to Little Rock. With no additional public comment, the council adopted the resolution as read; the motion carried 8-0.

The resolution authorizes the issuance of revenue bonds by the Springdale Public Facilities Board to finance a portion of the cost of acquiring, constructing, equipping and furnishing the expansion of the pediatric hospital owned and operated by Arkansas Children—s Northwest Inc., and prescribes related matters.

The council vote does not create a city obligation to repay the bonds; bond counsel repeated that the financing is arranged through the public facilities board to obtain tax-exempt status for investors.

Council next steps include standard bond-closing procedures and working with hospital and board representatives on timing and documentation required before bond issuance.