Small Town News

Seneca to refinance

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As a follow-up to prior discussions about the outstanding loan on the Lake Al-manor Clinic building, Chief Executive Officer Doug Self made a presentation to the Seneca Healthcare District board of directors Aug. 24.

"I have had discussion with the chairman of the California Health Facilities Financing Authority about the possibility of refinancing the clinic loan through their organization," he said.

He told the board that CHAFFA was the same organization from which the district had borrowed money last year to bridge the financial gap during the period of time when Governor Schwarzenegger was delaying MediCal reimbursements to hospitals.

"The chair at CHAFFA was pleased to have the discussion and told me this is precisely the type of project they like to finance," added Self.

He said loan financing would be available under the state's HELP II Program, which provides capital for buildings and equipment.

When quizzed about the current clinic loan balance and interest rates, Self told the board CHAFFA's lending rate is 3 percent. He said the latest interest rate on the Plumas Bank loan was 6.5 percent on the loan balance of approximately $1 million.

He said CHAFFA would lend up to $750,000 to entities for approved projects.

When asked if the organization might consider lending the district the full $1 million, Self said that he had asked that question himself. He said CHAFFA's organizational rules prohibit loans greater than $750,000.

"If the district's application was approved, CHAFFA would take the loan funds and pay off this much of the existing loan with Plumas Bank," he said.

He indicated the district would have to negotiate with Plumas Bank about the unpaid balance.

At the conclusion of his presentation, Self asked the board for approval to engage in the loan application process with CHAFFA.

In response, board members Bill Howe, David Slush-er, Rich Rydell and Ron Lon-gacre voted to approve Resolution No. 385, a CHAFFA requirement of the application process.

The purpose of the resolution is to state the board recognizes the need for establishing a loan with the California Health Facilities Financing Authority.



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