Trinity rejects MAGIC Fund loan | News, Sports, Jobs

Trinity rejects MAGIC Fund loan | News, Sports, Jobs

Jill Schramm/MDN
Trinity Health’s new medical campus, shown Thursday, is largely constructed but equipment installation and other interior work will continue until move-in happens during April.

Trinity Health has rejected the City of Minot’s MAGIC Fund loan offer.

In a letter to the city Dec. 28, Trinity stated its board of directors met Dec. 22 to discuss the city’s offer of a $3 million loan at 4% interest, with potential for $300,000 of the amount to be converted to a grant.

“After careful deliberation, the Board of Director’s respectfully declines the offer made by the City Council,” Trinity President John Kutch wrote in the letter. Trinity did not release additional details in response to a query Thursday.

The city council developed the loan offer Nov. 7 in response to Trinity’s request for a forgivable loan of $2.63 million for emergency/trauma center equipment and $370,000 for ER construction — a total of $3 million. The MAGIC Fund Screening Committee had recommended a $3 million forgivable loan with certain stipulations regarding redevelopment of Trinity’s vacated downtown properties.

 The council’s loan offer came with a stipulation that Trinity either demolish or convey its downtown hospital and Trinity East building to a third party within five years of relocating to its new complex. Trinity also would have had 10 years to demolish or convey the 29-unit Thompson Apartments, Health Center-5th Avenue and Health Center-Third Street. 

Other stipulations stated the city would take possession of the properties, Broadway parking lot and parking structure on Third Street Southeast if Trinity defaulted on the loan. Also, should a merger or acquisition have occurred within 10 years, in which Trinity was not the surviving entity, the agreement conditions would convey to the surviving entity.

The forgivable portion of the loan offer was tied to Trinity’s completion of traffic improvements on 37th Avenue Southwest, near the new hospital.

Council members had indicated concerns over the impact Trinity’s large request would have on MAGIC Fund reserves and Trinity’s eligibility under the definition of primary sector to receive primary-sector business assistance from the MAGIC Fund.

Work on the $520.5 million medical complex is continuing.Trinity previously has reported the project is being funded with $328 million in bond proceeds, $177.5 million from operational cash and $15 million from fundraising. Trinity has announced plans to begin moving into the new facility in April.

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