Nueces County court approves publishing notice of intent to issue certificates of obligation for hospital district clinic expansion

CORPUS CHRISTI — The commissioners court voted to authorize publication of a notice of intent to issue certificates of obligation to support the Nueces County Hospital District’s plan to expand the Hector P. Garcia clinic and relocate administrative and pharmacy services to the former Memorial Hospital site.

Hospital‑district officials and CHRISTUS Spohn executives briefed the court on schematic designs for a site that would include a new pharmacy/urgent‑care building and a separate hospital‑district administrative building in addition to renovation of the existing clinic. Victor Quiroga, the hospital district’s financial advisor, presented pro‑forma scenarios showing a financing package of $30 million to $45 million. Under the scenario for a $45 million issuance, he estimated the impact on the hospital district maintenance & operations tax rate would be about 0.67¢ per $100 of assessed value — roughly 56¢ per month for a homeowner with $100,000 in taxable value under conservative assumptions.

"This is the most efficient tool we feel to finance the project that’s being considered," the financial advisor said, describing a 30‑year fixed‑rate certificate of obligation transaction with a target interest‑rate lock in June and closing in July if the process proceeds on schedule.

Architects described a plan to renovate 15,000–17,000 square feet inside the existing clinic footprint and to construct new buildings totaling roughly 20,000 square feet for pharmacy and educational uses; preliminary site work also leaves about 10 acres available for future development. The design team said demolition of the former Memorial campus is nearly complete, clearing the way for the clinic expansion timeline.

The court’s resolution authorizing publication of the notice of intent does not set a final borrowing amount but clears the procedural step that state law requires before a certificate offering. The resolution passed in open session after the presentations and Q&A.

What’s next: Publication of the statutorily required notices will allow the hospital district and county to progress toward finalizing the borrowing amount, locking rates and returning to the commissioners for final approval of any issuance.