$14.5M project planned for SM Hospital

Plans for a major expansion of the St. Martin Hospital in Breaux Bridge advanced one step closer to reality last week when the St. Martin Parish Council approved a request by the hospital board to hold an election seeking approval of a $14.5 million bond issue in March.
Only residents of Hospital Service District No. 2 are eligible to vote on the bond issue and only property owners in the district would be subject to the millage, if the proposal passes.
Hospital Board member Burton Dupuis presented the request to parish council members last week.
If approved, the bond proceeds would be used to construct 24 new inpatient rooms, add space to house an MRI unit, acquire 44 acres of land adjacent to the hospital complex, construct a hybrid surgical suite and finance other site improvements.
Current estimates indicate it would take a property tax of 8.7 mills to service the 20-year bonds. In addition to the tax revenue, the hospital board has pledged to pay $250,000 per year from hospital lease revenues toward the cost of bond retirement.
The 8.7 mills tax would be subject to the usual homestead exemption on residential property.
The hospital district suspended the collection of a 5.5 mills bond sinking fund tax and a 4.75 mills operation and maintenance tax in 2009 when the hospital became affiliated with Lafayette General Health which is currently paying the hospital district $352,381 per year to lease the facility.
The board has secured an agreement from Lafayette General to extend its lease through 2034, without escape or termination provisions. The agreement includes an increase in the annual lease payment, which is based on square footage of the facility, once the additions are completed.
When questioned about the need to purchase 44 acres of property, which is a parcel immediately north of the current location, Dupuis said the main purpose would be “to protect the integrity of the hospital,” securing control of any future use of the property.
The election will be held on March 24, 2018.