[StBernard] St. Bernard increases funding for hospital

[Westley Annis]

Parish Government increases financial support for hospital

 

Three years after Hurricane Katrina destroyed St. Bernard's only hospital,
the St. Bernard Parish community continues to seek the right mix of
concepts, finances, and land to build a community based facility to serve
its residents, first responders, businesses, and industrial partners.  The
Parish Council called a special meeting on Saturday, December 6, 2008 to
address making the hospital a reality.  Council Chairman Wayne Landry called
for the meeting to take up a tabled issue regarding restructuring the
Parish's Long Term Recovery funds, usually referred to as CDBG funds.
Parish President Craig Taffaro, Jr. responded to council inquiries about the
use of the designated funds to further fund the hospital project.  Council
Vice Chairman Frank Auderer suggested that a review of all CDBG projects be
done in the decision making process.  After discussion of the priorities
that were set over the last two years and the need to balance support for
the hospital with comprehensive recovery, the council and administration
agreed to move an additional 10 million dollars of CDBG funds to the
hospital project.  The additional designation from St. Bernard Parish
Government raises the parish's financial assistance to the hospital project
to 35 million dollars, nearly 40% of the total funds that the parish has
been allocated for long term recovery projects above FEMA identified
projects and 60% of the needed funding for the estimated 58 million dollar
hospital project.

 

In 2007, state delegates Representative Ken Odinet and Nita Hutter with
assistance from then Senator Walter Boasso were successful in passing
legislation to allocate 17 million dollars toward the hospital project.  The
state funds were placed in categories which required the project to identify
other funding sources in order to move the 17 million dollars into a
category that would allow the funds to be used.  Current state delegates
Representatives Nita Hutter and Reed Henderson, with Senator AG Crowe have
been able to keep the funds viable and make a portion of the funds
accessible.  But with an anticipated 1.3 billion dollar shortfall in
identified state capital outlay projects, the state delegates have expressed
concern that no money is safe that is not clearly moving forward.
Henderson, who attended the special Saturday council meeting on December 6,
2008 described, "it is going to be a knife fight for the money".

 

With the 17 million dollars from the State Capital Outlay program and 35
million dollars from Parish Government and a new market tax credit
allocation of 6 million dollars in equity, the full funding for the project
has been identified.  President Taffaro reported that the identification of
all funding for a project using CDBG funds is essential because "if a
project doesn't have all funding identified, a project cannot use any CDBG
money allocated for the project- the action taken today clearly puts the
hospital project on a faster track". 

 

Councilman Ray Lauga, an outspoken proponent of keeping the hospital service
district an independent functioning board, voted to make the additional 10
million dollar allocation as a means to get the project done.  Lauga has
been disappointed that the funding sources originally identified by the
Hospital Service District members have not come through, leaving the largest
funding burden to be answered by Parish Government, "I think it [adding 10
million dollars] was a necessary move because the Hospital Service District
couldn't complete the USDA loan application on time, and therefore the
parish has to move our funds around for the hospital".  Lauga made a
substitute motion in the special meeting to protect funds of projects that
are already underway, such as the Val Riess Complex and Village Square land
acquisition.  The reallocation of the parish's CDBG funds will mean a plan
to use funds from FEMA and additional State Transportation funds to address
roadway drainage projects.

 

Council Chairman Wayne Landry, who facilitated the meeting discussion and
various proposals, expressed his desire to ensure that the hospital project
stay alive:  "I wanted to give the people of St. Bernard a debt-free
hospital, and tonight, we did that.  It was critical that we identify the
complete funding for the hospital so we didn't jeopardize the state capital
outlay funds.  Everybody cooperated to make this pass".  Representative
Henderson added his sense of approval, "I thought the council and the
president did a fabulous job and took a huge step to secure the hospital.
Without it, the funding for the project was in extreme jeopardy.  Henderson
has been in communications with the state appropriations committee and
explained to the local council that everyone is trying to get a hold on the
same money.  Representatives Henderson and Hutter and Senator Crowe will now
have a "fighting chance" to bring the full state capital outlay funding into
usable categories.  Hutter has sought a meeting with the State's
Commissioner of the Division of Administration to further secure the
funding.  In a related resolution, the council approved Wayne Landry to be
their designated point of contact for hospital project related activities.

 

Henderson added that this is clearly an indication that the Parish Council,
Parish President, and the entire State Delegation is committed to joining
the efforts of the Hospital Service District members to make the hospital
happen.

 

With the funding sources identified, a formal application for the CDBG
funding will proceed immediately.  The final missing piece of the project
continues to be the elusive land acquisition for the hospital project.

 

In recent discussions between the Meraux Foundation and parish government,
the Foundation expressed its desire to donate a footprint of land for the
hospital.  Hospital Service District Chairman Danny Dysart forwarded a
formal request for 20 acres of land within the Meraux Foundation's "Airport
Tract" in Chalmette across from the Walmart building.  While no official
response was received sources suggest that a response is forthcoming.

 

Connected to the Foundation's donation of land for a hospital is the ongoing
discussion of council approval of four upscale apartment complexes proposed
by the Foundation.  There is a moratorium on large multi-family units,
creating an obstacle for the Foundation's proposed developments.  There is
some concern that if the moratorium ends the apartment complex development,
the hospital land donation could be jeopardized.

 

Discussion of alternative hospital sites continue in order to keep the
project moving.  The hospital must be located within three miles from
Jackson Barracks in order to keep its Rural Designation which creates
essential financial reimbursement for the hospital when opened.

 

Parish officials plan to be in daily communications with the Meraux
Foundation and the representatives of the apartment development principles.
"This is a critical piece of the puzzle", explained Parish President, Craig
Taffaro, Jr.; "if the funding hurdle is cleared and the land acquisition is
not, the project stalls again.  "Between Mr. Landry and the council, the
Hospital Service District, and the parish administration, I am hopeful that
we will find a quick solution to this final piece of the puzzle".


 

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