craigdailypress.com

The road toward building a new hospital reached a milestone Monday.

Subcontractors for Twin Peaks Utilities and Infrastructure began dirt work on The Memorial Hospital's building site after receiving permission from U.S. Housing and Urban Development to begin work early.

"Even though it's just the dirt work, I think this is one of those milestones in the project," said Samantha Johnston, TMH service excellence officer. "Once we get (final approval on the HUD loan guarantee), people will start seeing actual brick and mortar."

TMH officials petitioned HUD to essentially co-sign the hospital's loan in case it defaulted. A HUD guarantee will make it easier to attract lenders to the project.

Current work is limited to preparing the land for the hospital building's foundation and other site developments, such as roads and parking lots, Johnston said.

She added she expects more extensive work will happen later this week when the hospital's surveyor provides grading plans to subcontractors at the site.

TMH needs a city building permit before other construction can begin.

Dave Costa, Craig community development director, said he received the hospital's building plans Monday morning.

He added he would go over the plans in more detail today with a representative from Windsor-based SAFEbuilt, a company that specializes in hospital construction.

While looking at building plans in his office, Costa said he noticed some errors and saw that information was missing.

Until TMH submits full and correct plans, it will not be given a building permit to start primary construction, he said.

A building permit is the final phase before the city clears the hospital to begin construction.

The hospital does not need a building permit to start dirt work, Johnston said.

However, before any work could begin, TMH required permission from HUD or it would not be eligible for its loan guarantee.

HUD requires assurance that it is not responsible for money put into any work before it approves a loan guarantee, Johnston said.

"Any work we start on the site now, like the dirt work, if HUD does not give us that guarantee, then we're responsible for all the money put into that work," she said.

Johnston could not say when HUD might reach its final decision on the hospital's loan guarantee.

HUD officials visited the site last week and plan to make another visit to Craig this week, she said, and after that, all hospital staff work will be over. From then on, HUD will review the proposal internally before making a decision.

So far, Johnston said, every part of the hospital's construction process has happened on schedule and within budget.

TMH officials plan to start foundation work in August, start erecting the new hospital's steel frame at the end of August and have the building totally enclosed with a roof built by the first part of winter.

Crews then will work on the inside through the rest of the winter months.

Johnston said hospital officials anticipate having the hospital completed and staff relocated to the new site around November 2009.

Collin Smith can be reached at 875-1794 or cesmith@craigdailypress.com