Washington bond issue may aid MVH purchase of Willow Pointe
The Washington County board of commissioners is expected this morning to approve a $20 million bond issue by Washington County Hospital Authority for a Monongahela Valley Hospital project in Rostraver Township, Westmoreland County.
County officials stressed that there would be no liability for Washington taxpayers.
The action would facilitate plans for an expansion by the mid-Mon Valley’s largest employer — and Washington County’s third largest — within the Willow Pointe Building at 800 Plaza Drive, near Willowbrook Plaza along Route 51.
In fact, MVH’s HealthPlex Imaging already is there, along with its Center for Fitness and Health which occupies more than 40,000 square feet there, including two group fitness studios, an indoor walking and running track and lap and therapy pools.
“The hospital was leasing 70 percent of that building already,” hospital spokesman Andrew Bilinsky said. Instead, the hospital will purchase the building from Donald J. Ivill and take over the portion now housing the Willow Room.
Ivill also was owner of General Industries in Speers, a commercial construction firm which closed its doors in May.
The resolution to be considered this morning noted MVH plans for improvements to a building “to serve as a medical mall housing various hospital departments, doctor’s offices and a fitness center.” The expansion brings an end to the Willow Room, which had hosted numerous events since 2004.
“We have hosted some of the most memorable and beautiful events in the Mon Valley, with tens of thousands of guests having celebrated milestones in their personal and professional lives,” owners of the banquet hall posted in August.
“The building in which The Willow Room rents and operates is in the process of being sold,” the posting continued. “While we regret not being able to host our 2017 reservations, the new owner will be converting the space for another important community-related use.”
The hospital authority would issue two or more series of notes, including a tax-exempt Hospital Revenue Note Series 2016A and taxable Hospital Revenue Note Series 2016B.
A financing agreement covering the notes involves the authority, Mon Valley Hospital and KeyBank “as the purchaser of the 2016 Notes,” as well as “other sources and security as described in the purchasing agreement.”
The resolution required approval from the Rostraver Township board of commissioners, which took action at a special meeting on Nov. 30.
“It’s just showing that the township has no opposition to the hospital buying the property,” Rostraver’s Finance Director Jeffrey Keffer said Wednesday.
The action followed the board’s hearing from hospital officials at a Nov. 16 work session.
There MVH Senior Vice President and Chief Financial Officer Daniel F. Simmons said the hospital has rented space at Willow Pointe for the past 13 years and, when the opportunity came up to purchase the building, it only made sense.
Simmons said the hospital will save approximately $200,000 a year by purchasing the building. Township Finance Director Jeffrey Keffer told the commissioners that the sale could cost Rostraver up to $21,000 in lost tax revenue since it will now be owned by a nonprofit entity instead of merely being rented by one.
Township Solicitor Al Gaudio said an accountant will have to be consulted to determine what portion of the building will qualify for tax-exempt status and how much will remain taxable as commercial real estate under the new ownership.
Simmons told the township officials that the hospital intends to continue leases of outside agencies already renting space, but would renovate the fourth floor that previously housed the Willow Room for additional physicians’ offices.