St. Cloud City Council Considers $332 Million Bond Issue to Support CentraCare Expansions and Refinancing

(KNSI) – The St. Cloud City Council is holding a public hearing on whether to issue up to $332 million in bonds to help finance CentraCare’s recent expansions.

The arrangement is beneficial to CentraCare as it would result in a lower interest rate than if it went to the bond market itself as a private entity. The healthcare provider is the city’s largest employer, and St. Cloud officials believe the deal would be a net positive for both sides.

CentraCare has already agreed to pay $53,000 in fees for applying and marketing the conduit debt financing. CentraCare would be responsible for making all debt service payments. St. Cloud is not a guarantor on the loan.

The funds would be used to refinance over $113 million in existing debt issued in 2014, facilitate purchases of equipment and other needs, and fund the expansion projects at CentraCare Plaza and CentraCare Sauk Crossing in Sartell.

The two projects involve new construction and additions totaling nearly 235,000 square feet. The ambulatory surgery center and a revamped physical rehabilitation area would be added. CentraCare also plans to move its Sartell Clinic, lab, and imaging services into Sauk Crossing, which currently houses the eye clinic.

The expansions are expected to have a price tag of around $229 million. The meeting is Monday at 6:00 p.m. inside city hall.

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