FirstSouthwest Client Approves Sale of $42 Million in Bonds to Complete New Dallas Hospital
Dallas County Hospital District, a FirstSouthwest client for more than 25 years, recently announced its intention to sell $42 million in bonds to complete the construction of a new public hospital in Dallas county. The new Parkland Hospital, scheduled to be complete in 2015, will be located across the street from the undersized and overcrowded current facility that was built in 1954.
Beginning in 2007, FirstSouthwest began working with the hospital administration and board to plan the financing strategy for the replacement hospital.
According to Chris Janning, senior vice president of FirstSouthwest in Dallas, the $42 million bond issue was planned from the very beginning.
“The board of managers knew they might incur cost over-runs because of the very long planning and build-out timeline for such a massive project,” said Janning. “Parking has always been in short supply at the Medical Center and always takes a back seat to the clinical needs of the District. Knowing that the new Parkland was going to be bigger and designed to serve a much larger number of patients annually, the board wanted to make absolutely sure there was funding available for the parking garage. This is where the $42 million of general obligation bonds that were ‘voter authorized, but unissued’ come into play.”
From the initial planning stages, the board agreed if there were cost savings, or if operations kept generating adequate cash flow, the $42 million in bonds would not be sold. However, if the District needed the funds, they could have a second, small completion bond sale, which they have recently decided to pursue.