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Concept: Budget

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Below we track the proposed budget of the new Downtown Utica hospital, as well as discuss City, County & State budgets. The hospital budget requires understanding other budgets as well...

"Old" Hospital Budgets,
City of Utica Budget,
Oneida County Budget,
and New York State Budget.

In addition to all these, MVHS has reported they'll be seeking donations from charitable sources as well. This brings in the Donor Philanthropy part of the budgeting.

Downtown Hospital Budget

Looking at the downtown budget, we see a great deal of Missing Figures. We must mention Parking, it's a huge part of the downtown hospital concept; scroll down this page for the parking (garage) budget, said to be entirely falling onto the taxpayers' shoulders.

2022

November 21, 2022 - New MVHS/Wynn Hospital is planning to expand into nearby MOB/ASC, read the UCB LLC application for Financial Assistance (PDF, 6.2MB).

2021

November 22, 2021 - Cost Increases for Wynn Hospital: A “Significant Amount” of RFIs to Address...

[A] With a project the size of Wynn Hospital, challenges start piling up before construction even begins, with rapid changes and numerous RFIs to address coming in fast and furiously. Healthcare projects are notorious for ever-changing drawings. “We had a significant number of RFIs [Request for Information] in the first six months of the job…” Said Rich DeLotto, a Senior Project Executive at Danforth

[B] Research has shown that an average project on a typical day could have between 15 to 20 RFIs per $1 million in project value. This means a $5 million project can generate about $100,000 in costs. [Ref.]

Did the MVHS budget "contingency line item" cover them all?

July 23, 2021 - Was this $27M in their original hospital budgeting?

“The Kennedy Parking Garage is connected to the former Mohawk Hospital Equipment (Mohawk Building), now owned by MVHS, which is being converted to serve as the new hospital’s Central Utility Plant. To date, $12 million has been invested in improvements to the building. The total investment in the CUP, when completed, will be $27 million.”

Per news story out of Rome, Utica, MVHS at odds over sale of parking garage, new hotel project

2019

September 21, 2019 - New price, but we suggest it's more like a $1B hospital conceopt...

July 7, 2019 - Looking at their figures, MVHS STATS BOOK, and adding-in costs they've incurred or are projecting...

We're talking about the end of #MVHSDOWNTOWN and perhaps MVHS!

2018

March 29, 2018 - Where Will $481.3 Million For Hospital Come From?

"$481,371,583 - That is the total budget for the Mohawk Valley Health System’s new hospital project, and representatives thus far do not foresee that changing anytime soon."

"Thus far, Aiello said the health system has incurred approximately $7.3 million in project-related costs."

"Not included is the cost of a new parking garage designed to support the project. It initially was estimated that the garage — including renovations to the existing Kennedy Parking Garage — would cost $43.5 million..."

$481 million budget will be covered by the following sources:

(a) $300 million A health care facility transformation grant awarded by New York State,

(b) $150 million Bonds, whether they will be tax-exempt still needs to be determined, and

(c) $31.4 million Equity, see below.

The $31 million ($31,371,583) in equity, Aiello said, is the health system’s commitment to the project that was needed to pursue a Certificate of Need from the state. Health system representatives hope to offset that cost, at least in part, through a fundraising campaign expected to launch next year.

The budget’s expenses, meanwhile, are allocated into more than a dozen different areas. The chief among them: $320 million for new construction.

Other expenses include:
$30,350,000 for site development, which is the cost associated with preparing for construction. Falling under this line is demolition, excavation and environmental remediation.
$29,275,000 for movable equipment, otherwise known as items that outfit the hospital, including the operating rooms. Everything from CT scanners to furniture and desks.
$18,861,860 for what’s referred to as other fees. Aiello said this budget includes legal fees, costs associated with acquiring a Certificate of Need and planning out if, how and when equipment outfitting the existing hospitals will go into the new facility.
$18,730,205 for architect/engineering fees.
$12 million for land acquisition.

2017

November 16, 2017 - MVHS, city unveil downtown hospital site plan...

"The project also includes five parking lots, with a total of more than 1,100 spaces."

2017 Budget - View the OCLDC Application For Financial Assistance, For MVHS's New $480,000 Hospital.

October 26, 2017 - New hospital budget nearly equals total annual budget of MVHS!

View current New Hospital Budget: $523,517,875 and "MVHS has more than 4,000 employees (FTEs), an operating budget of $532 million" (PDF).

September 13, 2017 - Budget note, so what is it? We've heard, "about the same", "the costs to be comparable at both locations", and "we never costed-out the St. Luke's campus"...

Parking & Parking Garage Budget

July 25, 2017 - Warning to city: No garage, no new hospital

From the story above... Here’s a look at how a parking garage would be funded, assuming a 1,550 space garage and the inclusion of the city’s Kennedy parking garage in the project, according to Steve DiMeo, president of Mohawk Valley EDGE:

* The estimated cost would be $43.5 million to construct the garage and cover related expenses.

* About $1.5 million of that money would come from Empire State Development funding that was never spent.

* Officials have requested about $10 million in funding, although it is not guaranteed, from regional state aid, from which $3 million would be pulled out to cover Kennedy garage repairs.

* A grant from the New York State Assembly would cover $1 million.

* That leaves about $37.5 million to raise.

* About $10 million would come from New Market Tax Credits, in which tax credits are sold to private companies. Interest would have to be paid for seven years, but then the loan gets converted to equity with no further costs.

* A bond issue, to be undertaken by the county, would raise the last $27.4 million.

* Oneida County and Utica haven’t yet worked out how they would split the debt obligation. [Editor note: Yes they think they have, but it is not a legal option, Read More] Both 50/50 and 60/40 (with the county at 60) have been discussed. An even split would leave the city paying $855,000 a year for the first seven years and then less as the loan payments end. With a 60/40 split, the city would pay $684,000 a year.

* The first payments would probably be due in 2021 or 2022. When taking the city’s other debt obligations into consideration, a 50-50 split would raise taxes by 2.29 percent in the first year and .56 percent in the second. After that, taxes would go up some years and down others. That’s a little higher than the 2 percent tax cap.

July 4, 2017 - If money is an issue downtown, hospital board would place new hospital at St. Luke's...

May 14, 2017 - Here is the cost to construct a surface parking lot...

The Downtown Concept Has Drop One Parking Garage, Adds Five Surface Lots, so we'll be watching this budget line item. Also of concern, CEO Scott Perra doesn't show the cost for his required $70-75M new IT System.

2016

December 28, 2016 - Can health system afford another $150M in debt?...

"The Mohawk Valley Health System owes $40 million in long-term debt but plans to add $150 million to its tab to build a new hospital."

MVHS's current annual debt service costs are $4.2 million, per this news story.

November 3, 2016 - Downtown hospital price tag downsized...

"New projections, based on a more thorough evaluation of what’s needed, have almost closed the $98 million funding gap"

"Initially, officials projected a $575 million, 830,000-square-foot structure in the area between Oriskany, Columbia and State streets and Broadway in Utica. But hospital officials have downsized their projections to $480 million and 750,000 square feet."

"A parking garage — with an estimated cost of $27 million — was taken out of the plan. The garage is essential, but health system officials believe that third-party ownership of the garage makes sense. Perra said officials have received indication in “a very meaningful way” that someone is interested in the project. The garage might very well also serve Utica Comets hockey fans and patrons of new downtown businesses." [Editor Note: Speaking of "new downtown businesses", perhaps the Oneida County Executive's Downtown Utica Casino ...?]."

New numbers for Mohawk Valley Health System’s downtown hospital:
Estimated cost: $480 million
Estimated square footage: 750,000

September 20, 2016 - Downtown hospital still short on funds, but moving forward...

"MVHS has lined up enough of the estimated $575 million needed to build a new, downtown Utica hospital that it’s moving forward with its plans."

"Between the state money and the money the hospital plans to raise through financing and philanthropy, the project still faced a $98 million shortfall."

April 13, 2016 - Report says, Hospital Needs To Find A $98 million funding source, also reported...

"The health system has consulted with investment bankers who say it should be able to borrow $150 million toward the estimated $570 million to $575 million project. The health system has tentatively earmarked another $25 million to come from local fundraising, Perra said. And the state is contributing $300 million."

"The price difference [St. Luke's Campus vs. Downtown] was between $20 million and $30 million, which is a small percentage of the total price", Perra said.

"The existing building at St. Luke’s campus would then have to be razed at an estimated cost of $5 million to $6 million"

January 20, 2016 - Officials: Governor committed to new hospital; source of funds unknown...

"The hospital already has spent about $500,000 on planning, Perra said. That doesn’t include the cost of studies done by Mohawk Valley EDGE to help determine the best site for the hospital."

2015

December 12, 2015 - Money crunch! Read, Money crunch puts downtown hospital in doubt, budget figures remain estimates, yet states, "...if that [downtown] location proves financially viable. If it doesn’t, the hospital would go on the St. Luke’s Campus in New Hartford."

December 12, 2015 - Demo costs for St. Luke's...

"The St. Luke’s hospital building probably will have to come down, Hutton said, adding that he understands the demolition might cost in the neighborhood of $5 million or $10 million. St. Elizabeth Medical Center possibly could be converted into condominiums, he suggested." [Ref.]

October 11, 2015 - Per the Utica OD, sources of money for a new healthcare and hospitals...

FUNDING HOSPITALS
Total hospital funds from state: $1.4 billion
Total downstate: $700 million
Mohawk Valley Health System: $300 million
Remaining in pool: $400 million

September 22, 2015 - Earliest estimates offered, Hospital officials estimate the project would cost approximately $500 million to $600 million depending on location and would take four to six years to complete.

February 4, 2015 - Intresting to note, from a story titled, $300M in governor’s budget for Utica hospital merger, residents hear...

"Cuomo lists the project in his executive budget. As part of the governor’s proposed $700 million to support upstate hospitals, $300 million is designated “to create an integrated health care delivery system in Oneida County to reduce unnecessary inpatient beds and expand primary care services."

So the funding is for a "merger" and "plan to reduce beds", but we know folks are saying "new hospital" and whispering "downtown"!!

Our group is not opposed to investing in the region's healthcare and not against a new hospital, just the Downtown Utica location selected by politicians! We're 4,000+ Strong At #NoHospitalDowntown and say: Just Build IT At St. Luke's!

No Studies, No Reports, thus we remain #NoHospitalDowntown

Our research is ongoing, please check back. Our research is ongoing, please check back.