At its Jan. 21 meeting, Peoria’s Industrial Development Authority approved the city of Peoria taking part in $130 million in bond money for a new hospital in Peoria.
After the board approval, the matter was scheduled to move to the Peoria City Council for consideration.
If approved, the bond proceeds will be used to finance Peoria Regional Hospital and is intended to be the first of a multiphase development.
The hospital is to be located at 26320 North Lake Pleasant Parkway on a 7-acre site.
The target date for Peoria Regional Hospital opening is July 2022.
A half-finished foundation on the site for a former project that ran out of funding was long considered an “eyesore” at the site between Jomax and Happy Valley roads. It has been cleared, leaving an empty lot where the hospital is planned.
The full-service hospital is proposed to have 32 beds and 82,000 square feet.
Fredrick Buss, Peoria’s economic development director, said the hospital is needed by the city with a fast-growing population.
“We’re the sixth largest city in the state and we don’t have hospitals,” Buss said.
“Peoria right now is on a trajectory we have never seen before,” he added.
Buss also estimated the hospital will bring around 150 jobs to the city.
He explained bonds financing the project will be passed through the industrial development authorities, a common financing plan, Buss said.
The IDA was formed in 1977 and has passed seven projects to date, the latest in 2012.
“Passing them through industrial development authorities provides better rates. If it’s a nonprofit, they can get nontaxable bond issuance,” Buss said.
Dignity Health, Banner Health and HonorHealth have all used this type of financing, Buss said.
As part of a partnership, Phoenix and Peoria city councils will meet to approve the bond, though there is no financial risk to either city.
“There’s no risk or liability for repayment bonds by either entity; that all rests with the investment bank,” Buss said.
Buss also confirmed there will be no impact on property taxes.
Peoria City Council will meet Feb. 2 for approval and Phoenix City Council will meet Feb. 3.
A plan for the hospital includes:
•Separate entrances for walk-in and emergency medical transport.
•Surgical suite with three operating rooms.
•Preoperative unit with eight beds.
•Eleven bed post-anesthesia care unit.
•Heart catheterization procedure room.
•Magnetic resonance imaging (MRI) and ultrasound.
—Staff writer Allison Engstrom can be reached at email@example.com.