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Published March 12, 2012, 10:20 PM

Altru plans $130 million bond issue

Altru Health System plans to issue $130 million in bonds to pay for expansion plans and refinance older debt. The Grand Forks City Council Finance and Development Committee took the initial step at its Monday meeting toward scheduling a public hearing on the bond issuance.

By: Christopher Bjorke, Grand Forks Herald

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Altru Health System plans to issue $130 million in bonds to pay for expansion plans and refinance older debt.

The Grand Forks City Council Finance and Development Committee took the initial step at its Monday meeting toward scheduling a public hearing on the bond issuance.

Bonds for certain nonprofits, such as health care facilities, are issued through municipalities, though the nonprofit carries all of the liability for the debt, said Grand Forks Director of Finance Maureen Storstad.

Altru’s Chief Financial Officer Dwight Thompson said that $74 million of the debt will be used to finance outstanding Altru bonds and the remaining $56 million will go toward construction and renovation projects at its properties in Grand Forks and the purchase of three buildings at the Aurora Medical Park, including the facility where Doctors Hospital had planned to open.

Altru is not disclosing what it is spending on acquisition. Grand Forks County records list the value of the buildings at $38.4 million.

Thompson said Altru would also use cash for the construction and purchase.

The committee recommended a public hearing, required by law, on the bond issuance be held April 16.

Also on Monday, Council member Eliot Glassheim asked that the council discuss its options regarding a shop that plans to open at 410 N. Washington St. at its March 19 meeting.

The Fargo-based business, Fantasy’s, sells lingerie and sex toys, and some neighborhood residents have objected to its location near Winship Elementary School and at crosswalk used by the school’s children.

Glassheim said he wants to know if the city has any options to block the business or if the owners and the city could find other ways to address residents’ wishes.

Reach Bjorke at (701) 780-1117; (800) 477-6572, ext. 117; or send e-mail to cbjorke@gfherald.com.

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