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City to take bids for $3.3 million in improvements at hospital site

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An estimated $3.3 million in street, water-sewer and utility improvements will go out for bid to pave the way for the proposed Perham Memorial Hospital and Home project.

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The extensive improvements will not only prepare infrastructure for the hospital project, but also service 38 undeveloped residential lots and one apartment complex lot which are all owned by the city, in the Clearwater Estates addition.

Moving on a separate but related track, Perham Memorial Hospital is expected to advertise for construction bids in July, according to PMHH Chief Executive Chuck Hofius, who attended the April 13 Perham City Council meeting.

The street and utility improvements will be financed by several sources.

•A $250,000 loan from the state Department of Employment and Economic Development.

•Special assessments to the hospital and the residential lots that would benefit from the improvements.

•$80,000 from the downtown area Tax Increment Financing District.

•$200,000 from the city's sewer department reserve funds.

•A tax levy to property owners which could be as high as $45,000 a year--spread across the tax base. If the residential lots sell well, the tax levy may not be necessary.

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