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Mountainview Medical Center board approves funding steps for new facility and bank loan
Summary
The Mountainview Medical Center board on Oct. 23 approved a funding agreement with Benefis and a $36.9 million Bravera loan proposal to support a new facility, while staff work with USDA and DEQ to resolve contract and clearance issues; the board also voted to request reinstatement of an 8-mill levy.
Mountainview Medical Center’s Board of Directors on Oct. 23 approved key financing steps for a planned new hospital facility, including a funding agreement with Benefis and a bank loan proposal from Bravera, while staff pursue regulatory clearances and contract negotiations.
Rob Brandt, MMC’s chief executive officer, said the hospital received the Paridy agreement and that counsel for Benefis and Bravera are reviewing it. He told directors that Sletten, the construction contractor, has liquidated damages in the contract of up to $10,000 per day and that staff will meet with USDA and Sletten to determine whether to accept that exposure, extend timelines or draw from contingency funds.
The board voted to approve and sign the Benefis funding agreement after Shane Sereday moved for approval and Cheri Bailey seconded. The board also approved a Bravera bank proposal for a $36.9 million construction loan at a 7.75% interest rate; the proposal includes a $185,000 origination fee. Brandt said USDA would disburse loan proceeds when the hospital moves into the new facility and that Benefis will hold $10 million on the hospital’s behalf. Collateral listed includes property, the existing facility, land and equipment.
Directors discussed a remaining administrative hurdle: staff reported confusion about exactly what the Department of Environmental Quality (DEQ) must state for the USDA to accept phase‑2 clearance. Brandt said "multiple people are now involved" to resolve the DEQ letter and that meeting with USDA and Sletten was scheduled to clarify next steps.
The board also moved to request reinstatement of an 8‑mill levy to support the hospital; Shane Sereday made the motion, Cheri Bailey seconded and the motion passed. Brandt said he will draft a letter to the county and that staff should consider meeting with county commissioners about the levy.
Next procedural steps include the meeting with USDA and Sletten and continued document review; staff reported a target Nov. 4 construction start date that remains weather- and documentation-dependent.
