Daniels County agrees to seek conduit bond for Daniels Memorial Health Care; final hearing set for April 6

The Daniels County Board of Commissioners voted March 16 to approve a resolution allowing the county to act as the conduit issuer for industrial-development bonds on behalf of Daniels Memorial Health Care Center.

Attorney Nathan Billu, who presented the resolution, told the board the financing would be structured so the county assumes no pecuniary liability. "Title 90-5-103 states that all bonds issued under this part must be limited obligation bonds and may not give rise to a pecuniary liability of the county," he said, reading the statutory protection included in the draft resolution. Billu said the hospital would enter into a loan agreement at closing that obligates the hospital to assume liabilities and indemnify the county and its officials.

The resolution authorizes up to $35 million in bond issuance, with the presenter saying the anticipated financing is approximately $32 million. Billu said the authorization includes a buffer so bids and final financing terms can be adjusted without requiring a new county vote.

The board also called a final public hearing on the project for April 6, as required by federal and state law, so residents can comment on whether the financing serves the public interest. Billu said the hearing is part of the Internal Revenue Service and Montana law requirements for conduit financing and that county action at this meeting was only to approve issuance for financing purposes, not to approve construction, zoning, permits or county-backed guarantees.

Commissioners voted in favor of the resolution. The county’s recorded action directs staff to publish the required public-notice language and to host the April 6 hearing.

The county and the hospital will still need to complete separate permitting and approvals related to zoning and construction, Billu emphasized. If the final hearing and subsequent administrative steps succeed, the hospital will become responsible for repayment and operational liabilities under the loan documents; the county’s role is administrative and limited to signing conduit documents.