Essentia Health is getting financing together for its Vision Northland project that will drastically reshape the health system’s downtown Duluth campus.
Essentia is seeking bonds to cover the purchase of land and construction of a new hospital, clinic and surgery center as well as remodeling and demolishing other structures, according to a notice issued Tuesday. The health system would cap its obligations at $875 million.
Essentia announced its $800 million campus plans earlier this year; construction is expected to wrap up by 2022.
Though the Duluth Economic Development Authority will be the pass-through entity and issue the bonds, taxpayers won’t be on the hook, as with other hospital bonds.
“The bonds are payable exclusively by Essentia Health,” said Heather Rand, DEDA executive director. “DEDA and the city are appreciative of the economic opportunity being presented by Essentia Health necessitating the financing request for bond issuance by DEDA.”