NASSAU HEALTH CARE CORPORATION ACHIEVES MAJOR MILESTONES AND CRITICAL STEP FORWARD TO ADVANCE NHCC’S GENERAL STRATEGIC AGENDA BY INTENT TO DECLARE ITSELF ‘LEAD AGENCY’ FOR SEQRA PURPOSES IN THE CONSTRUCTION OF AN ASSISTED CARE FACILITY, AN ASSISTED LIVING FACILITY, A COMMUNITY HEALTH CENTER AND A DIALYSIS CENTER ON THE CURRENT A. HOLLY PATTERSON PROPERTY AND BY RETAINING A TEAM OF INVESTMENT BANKERS AND FINANCIAL ADVISORS TO ASSIST THE NHCC IN THE COMPLICATED TRANSACTIONS ENSUING FROM NEW NURSING HOME
March 7, 2008
Contact:
Shelley Lotenberg
(516) 572-6055
shelley@numc.edu
FOR IMMEDIATE RELEASE:
NASSAU HEALTH CARE CORPORATION ACHIEVES MAJOR MILESTONES AND CRITICAL STEP FORWARD TO ADVANCE NHCC’S GENERAL STRATEGIC AGENDA BY INTENT TO DECLARE ITSELF ‘LEAD AGENCY’ FOR SEQRA PURPOSES IN THE CONSTRUCTION OF AN ASSISTED CARE FACILITY, AN ASSISTED LIVING FACILITY, A COMMUNITY HEALTH CENTER AND A DIALYSIS CENTER ON THE CURRENT A. HOLLY PATTERSON PROPERTY AND BY RETAINING A TEAM OF INVESTMENT BANKERS AND FINANCIAL ADVISORS TO ASSIST THE NHCC IN THE COMPLICATED TRANSACTIONS ENSUING FROM CONSTRUCTING NEW NURSING HOME
— Under State Environmental Quality Review Act, the lead agency will analyze any potential environmental impacts of projects –
— Strong finance team of investment bankers, tax counsel and bond underwriters retained to explore and execute finance options for $106M construction of new nursing home –
East Meadow, NY…..Joined by Chairman Payson and the Nassau Health Care Corporation Board of Directors, Arthur A. Gianelli, President/CEO announced that major milestones had been achieved regarding the implementation of the Commission on Healthcare Facilities in the 21st Century (also referred as the “Berger Commission”) recommendations on the reduction of beds at A. Holly Patterson (AHP) from its current 589 beds to 320 beds and the establishment of a 150 bed Medicaid Assisted Living Facility (MALF) on the AHP property.
“We have achieved two important milestones today, a major accomplishment and a critical step forward, bringing us closer to the realization of new health facilities to benefit the residents of Nassau County on the AHP property. Having our Board of Directors declare its intent to declare itself “Lead Agency” for SEQRA purposes and retaining an expert team of investment bankers and financial advisors will help us fulfill our mission of serving the people of this county by our commitment for the construction of a new 320 bed nursing home, a 150 bed MALF, a community health center and a 29 unit dialysis center, all on the existing AHP property in Uniondale,” stated Mr. Gianelli.
The NHCC will be retaining investment bankers and underwriters to help secure approximately $96M of financing to rebuild a 320 bed nursing home. The investment bankers and underwriters are being retained, while the bond counsel firm is Hawkins, Delafield and Wood. The expert team of investment bankers and underwriters will help explore the most efficient and effective financial mechanisms available to the NHCC. “We intend to explore financing options on a dual track, including Federal Housing Administration (FHA) – Section 232 financing and/or unrated bond issuance. The unrated bond issuance is where NHCC would issue its own bonds at presumably a slightly higher interest rate than with the FHA-232 financing. The benefit of unrated bond issuance would be that under the unrated tract, the transaction could be consumated a year or more sooner, saving the corporation substantial sums of money,” said Mr. Gianelli.
In order to comply with the Berger Commission recommendations, the NHCC will construct a new AHP nursing home of 320 beds. The downsizing from the present 589 beds to 320 beds will result in the appropriate placements of residents in the new MALF. The MALF will be constructed simultaneous to the construction of the new AHP, to minimize disruption to the residents. In addition, the NHCC will construct a diagnostic and treatment center (commonly referred as a community health center) and a 29 chair unit dialysis center, also on the Uniondale property.
Following receiving and reviewing a Full Environmental Assesment Form prepared by the NHCC’s consulting firm, designed to assist the Board in determining whether the replacement of the current AHP nursing home with the new state-of-the art facilities on the Uniondale property would create any potential environmental impacts, the Board declared its intent to declare itself “Lead Agency” pursuant to the New York state Quality Environmental Review Act and notified other potentially involved agencies. The NHCC is required to look at potential environmental impacts, if any, that may arise from constructing these facilities. Today’s resolution on “lead agency’ status, allows NHCC to proceed with the required environmental review. Retaining a finance team will assist the NHCC in exploring and executing financing options through bond counsel and an underwriting team to market the bonds.
“These two major milestones reached today are very good news for Nassau’s most vulnerable residents who depend on our services. We are grateful for the support obtained from our state and county officials in helping us reach another important step forward in the future of the A. Holly Patterson property,” concluded Mr. Gianelli.