Allen County commissioners met in executive session for five minutes Tuesday to discuss acquisition of property for a new Allen County Hospital site, but gave no indication of what they were considering.
Commissioner Dick Works wondered aloud before the secret talks why the cloak and dagger attitude. In response, Commission Chairman Gary McIntosh said he thought there was enough sensitive information to discuss to keep mum.
Earlier in the study process, the county’s consulting firm, Health Facilities Group of Wichita, mentioned the area north of U.S. 54 near The Family Physicians clinic, 1408 East St., as a possible site. Nearby business properties have been abandoned. Sites elsewhere along the east edge of Iola also are being considered. A component of the decision is availability of utilities and other infrastructure.
Commissioners have not said when they would reveal their choice.
Allen County voters will decide Nov. 2 on a quarter-cent countywide sales tax to help with funding of the hospital, expected to raise about $400,000 a year. The countywide tax would expire after 10 years.
Proponents have noted that a quarter-cent sales tax would only add 25 cents to a $100 purchase. If a family spent $10,000 a year on retail purchases, a quarter-cent tax would amount to $25, a little less than seven cents a day.
Anticipated cost is $30 million, with about $18 million going for construction, $7 million for equipment and $5 million for working capital to meet operating costs.
Iola also will make available up to $350,000 a year from revenue generated by its half-cent city sales tax, also for 10 years.
The bulk of funding for the new building will come from hospital profits, which have been about $1.5 million a year, and Medicare support available for construction of a critical access hospital.
Commissioners said they were exploring all financial avenues and would welcome private contributions to the funding mechanism.
No property tax levy will be required to meet debt service on construction bonds or any other financial phase of a new hospital.
No word on hospital site
