Piedmont leaders consider refinancing nursing home debt

July 18--PIEDMONT -- The city could help a local nursing home lower its debt payments and upgrade its building to better serve patients and increase revenue, city leaders learned Tuesday.

By the city agreeing to refinance the Piedmont Health Care Center's debt, there would be more money to add 12 private rooms, a rehabilitation gym and other amenities, helping make the facility more competitive. Also, with lower payments, the nursing home would have more cash in the years ahead to pay for other needs as they arise, such as new wheelchairs, facility officials say.

The Piedmont City Council learned about the proposed bond refinancing during its regular Tuesday meeting. The council opted to review the financial details of the proposal, then vote on it at the next meeting.

Trudy Lowe of Prefered Health Services, which manages the center for its owner, the Piedmont Healthcare Authority, said during the meeting that the city held the bonds on the property and would need to grant permission for the refinancing.

"We want to consolidate all the debt by taking out a commercial loan," Lowe said. "We'd like to pay off all the debt and reduce our monthly expenditures for the debt service."

Lowe said the company is currently paying $35,000 a month on more than $2 million in bond debt on the building.

"If we can refinance, that would cut payments to $20,000 a month," Lowe said.

Lowe said the company wants to mainly use the extra money to add 12 private rooms to the building, which already has 12 private rooms. The building, located on Roundtree Drive, is licensed for 91 beds.

Lowe said private rooms tend to be more popular with patients. Also, they cost more, meaning they would generate more money.

"Personally, I think we should go along with this," Mayor Bill Baker said of the refinancing. "They're one of our largest employers and I think we need to work with them."

Also during the meeting, the council agreed to spend about $95,000 to refurbish the water testing lab at the city water treatment plant so that it meets state regulations. Jesse McKnight, superintendent for the city water, gas and sewer board, said the state would likely shut the lab down next year if the city continued not to meet with regulations.

The council also voted to apply for a state grant to update its comprehensive plan. If approved, the city would pay $20,000 over two years, while the state would pay $40,000 for the work. Also, the East Alabama Regional Planning and Development Commission in Anniston would pitch in another $20,000, said Frank Humber, director of planning and economic development with East Alabama.

Humber said the updates would include new details on downtown redevelopment plans, city rebranding and digitally mapping all the utility lines in the city.

"The mapping alone is worth $40,000," Humber said.

Staff writer Patrick McCreless: 256-235-3561. On Twitter @PMcCreless_Star.

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