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Lynchburg EDA backs Centra refinancing and expansion plan, adopting inducement resolution for up to $365 million
Summary
The EDA adopted an inducement resolution recommending issuance of revenue bonds not to exceed $365 million (plus refunding amounts) to refinance prior debt and fund a multi‑year modernization and expansion at Lynchburg General Hospital, including a new six‑story facility and emergency department improvements.
The Economic Development Authority on March 19 adopted an inducement resolution recommending issuance of revenue bonds in an aggregate principal amount not to exceed $365 million, plus amounts necessary to refinance previously issued bonds, to support Centra’s investment at Lynchburg General Hospital.
Centra’s bond counsel described the financing as a combination of new money for modernization and refunding of existing debt; most new money, counsel said, is expected to be used at Lynchburg General Hospital for a new six‑story medical facility, expansion of the emergency department, expanded perioperative services, labor and delivery and maternal‑child units, additional medical/surgical units, a new main hospital entrance, parking and utility infrastructure including a central plant and geothermal system.
TWW Bruno, counsel serving as bond counsel on the transaction, said the public hearing is to satisfy notice requirements and that staff expects to return to the April meeting with a formal bond resolution that sets issuance terms; his office anticipates some numbers in the formal resolution will differ from the public hearing notice because refunding opportunities are expected to be included later. Rob Tominson, Centra’s CFO, told the board Centra employs about 5,500 people in the region.
Staff reminded the board the bonds would not constitute a debt or obligation of the city, the commonwealth or the authority. After the public comment period and no speakers in opposition, the board voted by voice to adopt the inducement resolution.
Next steps: staff and Centra advisers expect to return with a formal bond resolution setting definitive terms and issuance mechanics, and the authority’s vice chair indicated he would recuse from Centra-related matters due to participation with Centra.
