- MVHS projects $15 million in additional annual savings in operating efficiencies by combining its two campuses, which means more money for direct healthcare instead of maintaining existing facilities
- MVHS has committed to use local labor, materials, equipment vendors and businesses throughout the project when possible. Supporting the community is critical for MVHS, and other community partners
- For the Mohawk Valley region, local construction industry impact will be $155 million+ and will require nearly 2 million man-hours of construction labor over the life of the construction phase, with a peak employment of nearly 500 construction workers1 .
- Project will generate $15-17 million estimated state and local sales tax over the 36-month construction phase, of which $675,000 to $765,000 in sales tax dollars will go to Oneida County and the City of Utica2.
- Estimates indicate that the City of Utica will see a net gain of revenues and avoided costs that exceeds the loss of property tax dollars from properties that are to be assembled for the project and the City’s share of the debt service on the County-City-MVHS parking facility. Estimates show that the City may realize $237,000 in revenues and other economic benefits after offsetting the loss of current property taxes and the City’s share of annual debt service on the new parking garage3.
- Project cost estimated at $480 million for an approximately 670,000 sq.-ft.- facility; projected completion date: 2022.
$300 million – Health Care Facility Transformation Grant through NYSDOH
$180 million - Financing secured on September 25, 2018
On Tuesday, September 25, 2018, Mohawk Valley Health System (MVHS) closed on the necessary financing to fund the new, regional healthcare campus project above the $300 million grant from the New York State Department of Health (NYSDOH). The loan is financed through Barclays, a multinational investment bank and financial services company.
- County, City and MVHS are collaborating on a new 1,550 car parking structure estimated to cost $40.5 million; an additional $3 million in other noncity funding is reserved to refurbish Kennedy Garage to support hospital and downtown parking needs (over and above $480 million for construction of downtown hospital campus). The new parking structure will be:
- Built and owned by Oneida County with County and City sharing debt service 60-40 percent.
- MVHS parking agreement allots 1,150 spaces for hospital needs; MVHS responsible for operation, maintenance costs estimated at $1 million/year.
- 400 of 1,550 spaces reserved for public use with additional space available for nighttime non-hospital events at the Utica Auditorium and surrounding areas.
1 Estimate provided by Turner Construction, the firm selected by MVHS as its project construction manager.
2 Based on estimated retail purchases by construction workers (e.g., hotels/lodging, gasoline, meals, and other discretionary purchases). Does not include State share of sales tax revenues during construction which could add $637,500 to $722,500 in sales tax dollars from construction worker spending.
3 Estimate provided by Mohawk Valley EDGE.