CARTHAGE The Carthage Industrial Development Corp. has extended a $250,000 line of credit to the Meadowbrook Terrace development to assist its owner, Carthage Area Hospital, with cash flow.
The facility being constructed on Cole Road in the town of Champion will be a 60-bed assisted-living facility.
The CIDC resolved to give the loan since the hospital is one of the largest employers in the Carthage area and because it plays a vital role in meeting the health care needs of the community as well as Fort Drum.
The terms of the loan to Meadowbrook Terrace Inc. include a moratorium on payments for 12 months followed by 108 months of full payments of principle with 5 percent interest totaling $11,517.27 monthly.
According to the resolution, this loan of working capital is part of a larger request from public agencies totaling $1 million.
The Development Authority of the North Country, Jefferson County Industrial Development Agency and Economic Development Corporation of Carthage also have committed to $250,000 loans.
They have a need for working capital despite the recent $9 million grant, which will be used to pay down long-term debt, CIDC member Thomas H. Piche said, referring to the recent Healthcare Efficiency and Affordability Law grant the hospital recently obtained.
Its important to get the money into their hands for the short time frame. After that, the long term looks good, he said.