New Albany City Council on Feb. 5 heard first reading on two bond issues that would support construction of a community health facility at the southwest corner of Village Hall and Johnstown roads.
A second reading is scheduled Feb. 19.
The Daimler Group is expected to break ground for the facility this spring.
The 52,000-square-foot health facility would be built by the Daimler Group on land owned by the New Albany Co. It would be built through a partnership with the city, the Ohio State University Wexner Medical Center and Integrated Wellness Partners.
The Wexner Medical Center is expected to lease 70 percent of the facility for clinical outpatient services, physician offices and rehabilitation services. Integrated Wellness Partners would manage a fitness facility within that space.
The rest of the building could include two community rooms: one for teens and another that could be used by the community for cooking demonstrations or other health-related programming from Healthy New Albany.
The building, parking lot and street improvements are estimated to cost $12.25 million, with Ohio State contributing $500,000 and the city providing $1.5 million, according to City Council's legislative report.
The two ordinances heard on first reading would separate the debt, with the city issuing $7.6 million in notes for the nonprofit portion of the building and $4.15 million in notes for the Integrated Wellness Partners portion of the building, for a total of $11.75 million.
City spokesman Scott McAfee said the city's bond counsel recommended separating the debt and issuing more debt than needed. One of bond debts would be reduced by the city's cash contribution of $1.5 million.
According to the legislative report, the notes will be held for 12 months, until the facility is built and the notes can be converted to 20-year bonds, which is how long Ohio State has agreed to lease part of the facility.
The city anticipates lease revenue from Ohio State and revenue from the village center TIF will help pay off the debt. McAfee said the cash contribution most likely would come from the village center TIF.
A TIF is an economic development mechanism available to local governments to finance public infrastructure improvements and, in certain circumstances, residential rehabilitation, according to the Ohio Department of Development. A TIF works by locking in the taxable worth of real property at the value it holds at the time the authorizing legislation was approved.