Tri-City Medical Center in Oceanside has obtained an $85 million long-term loan, backed by the federal Department of Housing and Urban Development, or HUD. The money will help the health care district get out from under its long-term debt, and start building new facilities.
In a press release, the chair of the publicly elected Tri-City board, Jim Dagostino, said the 25-year financing will, “enable our healthcare district to be seismically compliant by 2030.”
Tri-City has failed three times to get North County voter approval for $500 million bond measures for upgrades. The health care district has been under a financial cloud, with unresolved lawsuits threatening its bottom line.
District spokesman David Bennett said the new, low-interest loan will secure the medical center’s future.
“The $85 million is the long-term guaranteed loan that we’ve got," he said. "Now that frees up about $51 million of cash that we’ve had, used as collateral for loans that go back 10 years.”
Bennett said the first phase will be to build a new parking structure, and ground may be broken on that project within three months. He said the second phase will be to change the position of the entrance to the hospital and the third phase will be to build a new emergency department.
The district may have to go back to HUD for more financing for the seismic upgrades, he said.
“When we’re done with these phases, then that will enable us to go back to HUD for another tranche, hopefully,” he said.
Bennett said the district has a $190 million master plan that includes the seismic work.
