Site clearing is underway for the new main campus

MIDDLEOWN - Orange Regional Medical Center officials have announced that they have closed on $261 million in tax-exempt bonds to help fund their new hospital construction project.

The Dormitory Authority of the State of New York issued the bonds which carry an average interest rate of 6.33 percent.  The senior underwriter for the bonds was Merrill Lynch & Co. JP Morgan and Morgan Stanley participated as members of the underwriting group.

Orange Regional’s new 354-room, 600,000 square foot hospital will be built on East Main Street in the Town of Wallkill. When completed in 2011, it will replace its current campuses in the City of Middletown and Goshen.

“Approximately 77 percent 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,” said Orange Regional Medical Center Chief Financial Officer Mitch Amado. “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.”

The hospital has finalized the sale of Arden Hill and Horton campuses through a sale/lease back transaction with the Community Foundation of Orange and Sullivan Counties for $10 million.

The new hospital project has also been supported by the New York State Berger Commission which has recommended restructuring of hospital systems. Orange Regional has been awarded HEAL NY grant funding through New York State totaling $48.6 million to assist with project funding. 

Another key component to the new hospital financing will be the public phase of a capital campaign which will launch this summer.