November of 2006, the Governing Board of NMR committed $11,000,000
to the construction of a new medical office building on the campus
of St. Anthony Hospital, a major provider of indigent health
care, in near-downtown Oklahoma City. Funds were advanced during 2007,
and construction was completed in the spring of 2008. Three years
earlier, faced with rising costs and dwindling revenues, St. Anthony
Hospital was directed by its board to evaluate a move to the suburbs.
Following an immediate public outcry, the Mayor, City Council,
County Commissioners, and other community leaders joined with St.
Anthony to undertake a study of the conditions which prompted
the proposal for relocation, and developed a plan of public and private
action which would allow the hospital to retain its historic location
and commit to a major investment in facility and service improvements.
A component of that plan, the physicians' office building, was undertaken
by a private developer with physician investors because of the hospital's
capital shortage. The project faced severe feasibility issues after
the run-up in construction costs which followed Hurricane Katrina.
NMR's investment in the form of a low interest rate loan and a soft-equity
investment enabled the stalled project to move forward.
The NMTC-assisted investments by NMR leverage investments from
other private and public sources, which include a ground lease on
favorable terms from St. Anthony Hospital, site improvements funded
with a TIF loan, a direct loan (without NMTC support) from US Bank,
and equity investments from the developer and physician tenants.
This project is part of a reconfiguration of the east side of the
hospital campus, which includes a new hospital entrance, a closing
of a city street for hospital use, grade separation of service and
public access points, and new patient, visitor, physician and employee
parking on the east side of the campus, all accomplished with a
combination of hospital, government, NMTC, private developer, and
impacts from this project include approximately 144 construction
jobs, an estimated 258 permanent jobs (not including indirect or
induced effects, which approximately double this number), improved
healthcare services to Low Income Community residents and Low Income
Persons, wealth creation for those persons through savings attendant
to the payroll impacts, and ancillary benefits to a not-for-profit
hospital, committed to the Low Income Community. Catalytic impacts
on the neighborhood are evident in the opening of six new area restaurants,
a bakery, a new mid-town YMCA, and the renovation of many nearby
buildings within a year after completion of Saints Medical Plaza.