By The Associated Press
PHILADELPHIA — A nonprofit organization has been formed to obtain federal funding and tax credits for about a third of the cost of the new $19 million Neshoba County Hospital now under construction.
Officials tell the Neshoba Democrat the governments and for-profit entities do not qualify for the federal funding being sought by the Neshoba County Hospital Public Improvement Corp.
“The sole purpose of getting funding through the New Market Tax Credit program is to obtain up to $5.4 million for the project,” said board of supervisors’ attorney Wade White.
“Under the New Market program, the hospital pays interest and fees on the funds obtained for a seven-year period. After that time, the debt will be forgiven. The net benefit is approximately $4 million in free money.”
The remainder of the hospital project will be funded with a $4 million loan from the Mississippi Development Authority and cash reserves from the hospital.
The New Markets Tax Credit Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities.
The new hospital includes a new two-story, 52,000 square foot building adjacent to the existing emergency department.
The new facility will house a new emergency room, a four-bed intensive care unit, 25 state-of-the-art patient rooms, a new radiology department, new surgery suite and a new pharmacy.
The project is expected to be completed in spring of 2013.