WASHINGTON, DC – October 19, 2009 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) has committed to insure a $28,310,000 loan to Baraga County Memorial Hospital (BCMH) in L’Anse U.S. Congressman Bart Stupak announced Friday. The loan is being provided through the Federal Housing Administration’s Section 242 Hospital Mortgage Insurance Program and will be used to construct a new facility approximately 3 miles from the existing site.
“Baraga County Memorial Hospital provides critical access to medical care in L’Anse and the surrounding areas,” Stupak said. “With the nearest hospital nearly and hour away, it is critical BCMH has a state-of-the-art facility to serve patients in Baraga County. This HUD-insured mortgage will allow the hospital to continue providing quality care for years to come.”
The proposed replacement hospital is a one-story, 71,158 square-foot facility housing 15 acute beds with a retail pharmacy and an attached out-patient center. BCMH will also contain areas for imaging, laboratory, dietary, pharmacy, physical therapy, respiratory therapy and support departments.
The current hospital facility was constructed in 1969, and is no longer suited for today’s volume of outpatient activity. The out-dated facility also does not allow for implementation of new inpatient technology and services. The proposed site for the new hospital facility is a 39.8 acre tract of land located on the northwest corner of US-41 and Maki Road in L’Anse Township. The site will improve access to BMCH for Baraga County residents and others in the area.
HUD estimates the construction of the project will support 103 full-time jobs in the community and provide an economic stimulus of $70.5 million. Following construction, the completed project will provide an annual economic benefit of $2.4 million.
FHA’s Section 242 Mortgage Insurance Program for Hospitals provides HUD-insured mortgages made by private lending institutions to finance construction or renovation of acute care hospitals including major equipment needed to operate the facility. The eligible applicants can be public, proprietary, or nonprofit hospitals certified by the responsible State agency.
Contact: Michelle Begnoche
(202) 225-4735
