By Debra Moore
The effort to build a skilled nursing facility continues, with the Plumas District Hospital Board of Directors signing a design-build contract with S+B James Construction. The company has offices in California, Nevada and Oregon.
Darren Beatty, the hospital’s chief operating officer, said that the signed contract would be sent to the USDA for concurrence. (The hospital is obtaining a loan from the USDA for the bulk of the facility’s cost.)
The contract with S+B James Construction contains a $35 million maximum guaranteed price; and the USDA loan is roughly $28 million for hard construction costs. Beatty is hopeful that the construction costs can be lowered, and he said that the company already has calculated $3.2 million in possible cost reductions. “We hope to make it more cost effective,” Beatty said. “This is a step in the design-build process,” which is different than the frequently used design – bid – build process.
Even if costs are reduced, it appears more money will be needed to complete construction. Chief Financial Officer Caleb Johnson said that the option exists “to petition (USDA) for additional financing for whatever that delta is” in construction costs; however, he cautioned that rates are going up. The current rate is 2.5 percent.
The total price for the skilled nursing facility is expected to be roughly $38 million. Other revenue sources include a $1 million USDA grant, $1.5 million from Measure A funds, $1.1 million from district operations and a municipal lease of $2.5 million. The municipal lease is to pay for equipment, which will be used to secure the funds. Additionally, planning is underway to begin a capital campaign in the community.
It it remains as currently designed, the project will consist of a 36-bed, 22,507 square-foot facility set on 3.3 acres across Bucks Lake Road to the southwest of the hospital. It’s expected to open in 2025. Quincy’s former skilled nursing facility, which was privately owned, closed in 2015.
During the board’s July 14 meeting, Beatty shared images for the interior and exterior of the planned facility, as well as a short video. He emphasized that the materials selected for construction conform to the fire threat that exists in the area.
June 2022: Award design-build contract (completed July 2022)
Spring 2023: Complete design
Summer 2023: Building permit issued
Summer 2024: Begin construction
Summer 2025: SNF opens