Monday, February 29, 2016

MercyRockford threatens to move $485M hospital project to Wisconsin

 

image

 

By Brian Leaf
Staff writer

Posted Feb. 29, 2016 at 2:52 PM
Updated at 3:22 PM

ROCKFORD — Javon R. Bea says he'll move MercyRockford Health System's $485 million hospital complex to Wisconsin if the city doesn't reduce $1.8 million in building permit fees by March 7.
The city contends it needs that amount to expand fire and EMS services to the hospital campus, near the junction of Interstate 90 and East Riverside Boulevard.
Bea sent a letter today to members of the Code & Regulation Committee. The committee tonight will review an annexation agreement between the city and MercyRockford for 262 acres where it proposes to build its campus.
"I appreciate everything the city staff, my team and the alderman (sic) have done to make this deal happen however the city's $1.8 million permit, review and inspection fees demand is a deal breaker for me," Bea said in the letter. "I will move this major medical campus to Wisconsin if we cannot find a compromise on this issues. I trust you will appreciate the larger economic impact of this project for Rockford and support my request."
A city memo accompanying the proposed annexation agreement said MercyRockford wanted a 50 percent reduction in the fee, an amount Bea confirmed in his letter.

Javon Bea letter to Rockford City Council

"Council members, I am requesting that you support my request to ensure fees will not exceed $900,000," Bea wrote. "I have informed city administration repeatedly that I will not agree to such an exorbitant fee structure."
Bea said that if compromise proves elusive, and the annexation agreement is not approved by the full council on March 7, MercyRockford will miss a scheduled commitment with its bond financing partner "and this will force us to consider an alternate location in Wisconsin."
The letter was copied to city officials and state Sen. Dave Syverson, R-Rockford, who is a member of the MercyRockford board of directors.
The city argues in a memo on the annexation agreement that MercyRockford's new campus will strain city services. The city proposes turning a fire maintenance facility at 2323 Sawyer Road into a fire station to meet increased demand for fire and ambulance services.

It would shift staff to Sawyer Road from Station 7, 4979 Falcon Road, near Chicago Rockford International Airport, where it previously had provided emergency aviation services that were outsourced by the airport board in 2013

We are confident that we will be able to recommission the Sawyer Road facility for approximately the same cost as the building permit fee that MercyRockford would have to pay under the agreement, which is estimated at approximately $1.8 million," said the memo to aldermen from City Administrator Jim Ryan, Legal Director Patrick Hayes, Community & Economic Development Director Todd Cagnoni and Interim Public Works Director Matt Vitner.

Tonight's meeting begins at 5:30 p.m. at Rockford City Hall, 425 E. State St.

Above is from:  http://www.rrstar.com/news/20160229/mercyrockford-threatens-to-move-485m-hospital-project-to-wisconsin/?Start=2

No comments: