“If this project fails, let it be said it wasn’t because Pell City didn’t step up,” Mayor William “Bill” Hereford said. “I hope what we’re doing will encourage all parties to come together.”
Hereford said the St. Vincent’s St. Clair Hospital project is at an important juncture.
“This project is going to happen or it’s not going to happen,” he said.
Hereford told the council Thursday the city is expected to obligate about $3 million during the next 20 years to help subsidize the new hospital.
In addition, the city will provide as much infrastructure work, sewer, water and streets as possible for the new hospital site, where not only the hospital is planned but also a Veterans Administration nursing home.
The construction sites are near the Jefferson State Community College campus, north of Interstate 20.
Hereford said officials predict the hospital could operate with an annual $200,000 deficit for the first 20 years.
He said under a tentative agreement, the city will pick up half of the annual deficit for the next 20 years or up to $150,000 each year.
Under the proposal, Pell City will get one-half ownership of the old hospital on Dr. John Haynes Drive. St. Clair County will have ownership of the other half of the old hospital.
Hereford said the city can’t afford not to invest in the project, because the new hospital could indirectly create 300 jobs for the city with the construction of the Veterans Administration nursing home.
He said both construction projects are expected to start about the same time early next year.
“I’m not saying I’m not for it,” said Councilman Donnie Todd, who said he would have liked more time to review the proposed agreement. “This is three times more a year than what we contributed to the Honda plant. I will look for three times the impact.”
Councilman Greg Gossett said the city has no choice but to support the plan for the $28 million hospital.
“We’re going to have to belly-up,” he said, adding that the construction project will create jobs for Pell City. “It’s going to impact the city and the county, too.”
He said Pell City has citizens traveling to Birmingham for medical treatment, and a new hospital will help keep residents in St. Clair County and Pell City.
Officials say the new state-of-the-art hospital will not only attract new patients but more qualified doctors.
“I know we need it,” said Councilwoman Dot Wood, adding that she would like state officials to help as much as possible with the multimillion dollar project.
Councilmen James McGowan and Donnie Guinn also said Thursday they supported Pell City’s participation in the project.
“Yes, I’m for it,” Guinn said. “Three hundred jobs are huge for this community right now.”
Hereford said although he remains cautiously optimistic, the commitment could cause a real pinch in city finances — but he believes the city is in a “must do” situation.
“I would hate to be the stumbling block for this project,” he said.
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