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Lynchburg council authorizes up to $365 million in EDA conduit bonds for Centra Health hospital expansion
Summary
By a 7-0 vote, Lynchburg City Council approved Economic Development Authority conduit revenue bonds of up to $365 million to finance a major expansion of Lynchburg General Hospital, including a new emergency department, operating rooms and a mother–baby floor; Centra officials said construction is already underway.
Lynchburg City Council unanimously approved a resolution authorizing up to $365 million in Economic Development Authority conduit revenue bonds for Centra Health to expand Lynchburg General Hospital. The vote was 7-0.
Hank Creasy, chief legal officer and senior vice president of Centra Health, told council the project will add a 266,000-square-foot patient tower with a new emergency department, 12 operating rooms, a new mother–baby floor and additional beds. "This is going to be a fantastic addition to Lynchburg General Hospital and urgently needed for the community," Creasy said, describing concrete already being poured on the campus.
Council members asked whether the city or council could use the bond approval to press Centra on competitive issues in local health care. A council member asked whether the city could seek "leverage" or conditions as part of the approval; Creasy replied that those questions typically are handled at the Economic Development Authority level and cautioned that some forms of leverage may not be appropriate in this process. He also noted Centra's partnerships, including with LifePoint Health, and said Centra has not opposed some competing requests for certificates of public need in the region.
City staff framed the measure as conduit financing: the city and the EDA carry no repayment responsibility for the bonds. Council members framed the project as an economic engine; Centra was described during the meeting as one of the region's largest employers with thousands of employees and sizable local purchasing. "We can get services right here in our community to better those services," a council member said in supporting the approval.
The resolution authorizes the EDA to issue bonds that will support construction of the new patient tower and related infrastructure; Centra's legal and bond counsel attended the meeting to answer technical questions about timing and conditions. With the resolution adopted, Centra is positioned to continue the expansion work already under way on site.
The council concluded the item by voting 7-0 to approve the resolution.
