USDA announces rural facilities loans

Assistant to the Secretary for Rural Development Anne Hazlett June 27 announced the U.S. Department of Agriculture is investing $237 million in 119 rural community service facilities in 29 states.

Hazlett announced the funding following a meeting at Box Elder, South Dakota, of the Western Governors Association. USDA is supporting these quality-of-life projects through the Community Facilities Direct Loan Program.

For example, the City of Box Elder is receiving a $3.2 million loan to construct three streets and make utility improvements to promote economic development. The project will complement the South Dakota Department of Transportation’s decision to eliminate a dangerous intersection. SDDOT is contributing $2.35 million to this project. Two local developers have committed $500,000 each, demonstrating a public-private partnership and exceptional community support.

Other regional loan projects include:

Iowa

$2.86 million to Heartland Care Center, Inc., to construct an addition and remodel parts of the care facility in Marcus. The project will add private rooms to the skilled nursing portion of the facility, as well as a family suite and hospice room. The addition and renovations will cost $3,170,000. The applicant will contribute $10,000. Farmers State Bank is providing a $300,000 loan to help complete the project.

Kansas

$17 million, to Ottawa Investment Management Services, to acquire and renovate buildings at Ottawa University. The project will also make improvements to a university parking lot. Ottawa Investment Management Services, a non-profit organization based in Ottawa, will lease back the facilities to Ottawa University. OIMS proposes to acquire Brown Hall, Ward Science Hall, Gangwish Library/Gibson Student Center, and the Administration Building. Brown Hall is a 50- year-old residence hall that will be updated to current codes and accessibility standards. This project will allow Ottawa University to reduce debt, and to make improvements needed in other areas of the Ottawa campus. The population served by the project is 12,649.

$6 million, to the city of Hiawatha, to replace city streets. A majority of the city’s streets are asphalt over a thin gravel base or aging concrete base. The functionality of the street system and the city’s ability to efficiently maintain it has diminished. The downtown brick streets were built in the early 1900s, and many bricks have shifted. The new brick streets will include curb, gutter and accessibility improvements. The population served by this project is 3,172. Additional funding includes a $785,000 grant from the Kansas Department of Transportation.

$5 million, to Hospital District #1 of Harper County, to purchase electronic health records equipment for a critical access hospital being built in rural Harper County. In October 2017, two critical access hospitals in the county merged. The hospital boards determined that the best path forward was to build a new, combined facility, since both hospitals were more than 50 years old and in need of upgrades. The new hospital will accommodate a clinic with 22 patient rooms, 16 in-patient hospital beds, an emergency department, imaging department, lab, pharmacy, administration area, rehabilitation area, conference rooms, business offices, kitchen and dining area. The population to be served by this project is 5,180. The Patterson Foundation is providing $35 million in additional funding.

$3 million, to Sunporch of Smith Center, Inc., to construct a 25,000 square-foot nursing home/assisted-living facility in Smith Center. The project will construct two buildings that will offer a more home-like atmosphere for long-term-care patients. The homes will have nine private units, nine Medicaid units, two Medicare units and 12 assisted-living apartments. This facility will be able to take long-term care patients from the Smith County Hospital, which will stop providing long-term care once the new hospital is completed. The project has strong community support and will offer new assisted-living services in Smith Center and surrounding communities. The population served by this is project is 3,853. Other funding for the project includes $50,000 from the Community Foundation, $75,878 from fundraising, $300,000 from the Srader Foundation, $304,286 in Kansas tax credits, and a $3,380,073 loan from the Local Initiatives Support Corporation.

$450,000, to Gove County Healthcare Endowment Foundation, Inc., used to build an airport runway in Quinter, in Gove County. The county is one of only five Kansas counties that lack an airport runway for a medical air-ambulance service. This new runway will allow an air-ambulance service to take trauma patients from Gove County Medical Center to a larger hospital. Currently, trauma patients at the Gove County Medical Center are transported 30 minutes to the nearest runway for connection with an air-ambulance service. The population to be served by this project is 2,695. Other funding for this project includes: $2.65 million from the Federal Aviation Administration through a Kansas Department of Transportation Aviation Grant, a $330,000 contribution from Gove County, a $288,754 applicant contribution and $201,000 in Kansas tax credits.

Missouri

$782,600, to the Livingston County Nursing Home District, to construct an additional wing for skilled nursing patients. Fourteen rooms will be added in the new wing, however no additional beds are expected. The facility will convert semi-private rooms to private rooms. This will allow for an increase in the average Medicare reimbursement. This is a subsequent loan to cover cost overruns on the initial project, obligated in Fiscal Year 2015. The total cost for this project is $2,384,600, consisting of a $1.5 million Rural Development loan in FY 2015; a $17,400 Rural Development loan in FY 2017 and an $84,600 Rural Development grant in FY 2017. The Livingston County Nursing Home provides quality nursing and assisted-living care to the 15,195 citizens of Livingston County.

Nebraska

$5 million, to Henderson Health Care Services, Inc., to construct a 40-bed, long term care facility in Henderson. The facility will include 36 private rooms and two semi-private rooms. The facility will also feature two living and dining areas, two serving kitchenettes and one activity kitchenette along with family rooms activity areas, staff/nursing offices, a library, beauty shop and sitting areas and a conference room and a center courtyard.

$3.2 million, to West Holt Memorial Hospital in Atkinson, to make improvements to the 17-bed Critical Access Hospital. Improvements will include the construction of a specialty clinic that will allow patients to obtain services in a more confidential manner. The hospital can provide epidural steroid injections, which can decrease the need for opioid medications. These services will assist in the hospital’s ability to recruit pain management providers. The surgical suite and lab will be enlarged, and the waiting room and multipurpose areas renovated. These enhancements will better serve comprehensive health care to more than 10,000 people in a medically underserved area in North Central Nebraska.

$1.8 million to the Village of Arlington, to rebuild a community building which includes: a village office providing vital community services, a police station allowing close and easy access for Arlington residents and a new library providing enhanced educational experiences via computer access and wi-fi availability at no charge to the 1,243 residents of the village.

$1 million, to the Community Hospital Association in McCook, for additions and renovations to the 25-bed Critical Access Hospital. Mental health and opioid services will continue to be addressed and enhanced by including better access to a telehealth exam room and equipment to allow patients with behavioral health needs to meet with providers remotely. Additional funding is a $15 million Rural Development Community Facilities Loan Guarantee and a $3 million applicant contribution.

Larry Dreiling can be reached at 785-628-1117 or [email protected].