Extensive site clearing work has already commenced for the new 374-bed facility being built at a 61-acre site just off Route 17. ORMC officials report the deal recently closed with the Dormitory Authority and the agency has issued the 30-year bonds that carry an average interest rate of 6.3%. The senior underwriter for the bonds was Merrill Lynch & Co.; JP Morgan and Morgan Stanley participated as members of the underwriting group, hospital officials say. At press time no official groundbreaking date has been set for the project that has been estimated to cost $330 million to complete.
Commenting on the financing deal, ORMC chief financial officer Mitch Amado said, "Approximately 77% of the project costs are being funded through the issuance of these tax exempt bonds that can be repaid from the hospital's annual operations. The balance of the new hospital construction costs will be funded from several sources including monies we currently have in the bank, philanthropy, state grants and proceeds from the sale of Orange Regional's two existing campuses in Goshen and Middletown."
 ORMC site preparation |
When completed the new 600,000-sf hospital will be the largest medical center from the Tappan Zee Bridge to Albany. The project is the first of its kind in New York State in more than 20 years, ORMC officials say. Orange Regional has been awarded $48.6 million in HEAL NY grant funding through New York State to assist with project funding. The hospital plans to launch a public phase of its capital fundraising campaign for the new hospital this summer.
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