Sussex council approves tax-exempt bonds for Bayhealth

Medical system will use up to $103 million to help fund various projects in Sussex County
November 18, 2021

At its Nov. 9 meeting, Sussex County Council approved the issuance of up to $103 million in tax-exempt revenue bonds for Bayhealth Medical Center to be used with other financing to expand services in Sussex and Kent counties.

County Finance Director Gina Jennings said in order for the bonds to be tax exempt under the Internal Revenue Code, an elected representative of the governmental unit that has jurisdiction over the area where the facilities are located must approve the issuance after a public hearing.

“There is no obligation of the county for these bonds. Approving the issuance only allows the bonds to be considered tax exempt. The bonds are not a debt of Sussex County and do not obligate the county to pay any portion of the bonds,” she said.

Among the Bayhealth projects planned in Sussex County are:

• $39 million for an ambulatory care facility with a hybrid freestanding emergency department on an 18-acre parcel at the intersection of Route 9 and Hudson Road between Lewes and Harbeson. Site work is underway

• $19 million for a 24-bed, acute-care unit and C-section suite at the Sussex campus near Milford

• $3.4 million for on-call rooms and related facilities for Bayhealth’s graduate medical education program on the Sussex campus near Milford

• $225 for renovations to Bayhealth’s internal medicine continuity clinic, 804 N. DuPont Blvd., Milford.

Kent County Levy Court passed a similar measure for Bayhealth projects in Kent County totaling $121.94 million, including $50 million for a six-floor expansion at Bayhealth Hospital in Dover, $39.5 million for Dover Medical Neighborhood clinical services and administration space, and $21.49 million for various projects at Bayhealth’s Kent Campus.


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