The Missouri Development Finance Board approved the issuance of an initial $92 million in bonds on Wednesday to move the Fulton State Hospital project forward, according to the Office of Administration.
In late October, the board authorized the sale of up to $98 million and the board's action on Wednesday made the bond sale official. Missouri's AAA credit rating, the release states, locked in an interest rate of 3.4 percent for the 25-year bonds.
According to Ryan Burns, OA public information officer, the $92 million bond issuance will cover:
• Removal of Department of Elementary and Secondary Education and Missouri School for the Deaf as well as the Department of Corrections Cremer Center from the Fulton State Hospital steam plant and installation of independent heating equipment;
• Phase 1 of hazardous material abatement and building demolition;
• Installation of steam heating plant for Guhleman and Hearnes Forensic buildings; and
• Construction of the Energy Control Center and Services Building.
Demolition of the dietary, materials management, ECC and maintenance buildings will are set to start Spring 2015 and completed in Summer 2016, according to the project timeline.
Burns said these projects are in various stages of design, and the bid process will start in the next several months. If bids come in lower than expected, savings will be allocated to the new hospital construction, she added.
Fulton State Hospital project managers unveiled design details to the Mental Health Commission in October, which will include 300 beds in the maximum-security building, the Biggs Forensic Center. The design includes shorter hallway lengths and decreases blind spots among other design strategies to improve employee and client safety. The Fulton State Hospital has been deemed the most dangerous place to work in Missouri with one-third of employees filing worker's compensation claims, costing $4 million in taxpayer dollars.
The press release states that studies show the total project cost is estimated at $211 million and the Missouri Department of Economic Development predicts more than 2,500 jobs will be created during construction.
The final phase of the project - demolition of the Biggs Forensic Center - is scheduled for Spring 2018.
November 2007 was the last time Missouri issued bonds for new projects, the Office of Administration release states. Those bonds went to the state's Water Pollution Control loan program, which funds the planning, financing and construction of sewage facility for a county, municipality or sewer district.