FERRIDAY — The Louisiana State Bond Commission approved last week for the Concordia Parish Hospital Service District No. 1 to borrow $2.5 million to acquire land and begin the process of building a new parish hospital.

The district had previously received approval to borrow the money from the Concordia Parish Police Jury, which owns Riverland Medical Center. The $2.5 million would be borrowed from a local bank, hospital board chair Jim Graves said.

Graves said the bond commission met Thursday and both the Citizens Against Relocating Riverland (CARR) and the hospital board gave presentations. Graves said the bond commission approved the hospital board’s request unanimously.

“We are moving forward with our plans to construct a new hospital outside of Ferriday town limits and improving health care for the residents of Concordia Parish,” Graves said.

CARR member Barry Maxwell said he spoke on behalf the organization against moving the hospital.

“I think they are being irresponsible borrowing $2.5 million to buy 20 acres on the Ferriday-Vidalia highway (U.S. 84) when they have not received approval on a loan to build the new facility,” Maxwell said. “They already own 30 acres behind the existing hospital.”

Maxwell said the hospital board is doing the town and the businesses on Serio Boulevard a disservice by moving Riverland out of Ferriday.

“I don’t think there will be a big market for (the old building),” Maxwell said. “It will end up being a big gray dinosaur there on the Ferriday-Vidalia highway if they don’t find a tenant or a buyer.”

Graves said the hospital board would use the $2.5 million bond certificates to pay for architectural fees and purchase the land.

Approximately $550,000 of the $2.5 million certificates would be used to purchase the land on which the hospital would be built, which is owned by Dan Renfro. The land is located at 6569 U.S. 84.

The hospital board is seeking up to $36 million from the United States Department of Agriculture Rural Development Hospital Program to fund construction of the hospital.

When the USDA funds are received, some of the funding would be used to pay off the $2.5 million debt, Graves said.

Should the USDA funding fall through, the hospital district would pay off whatever amount was borrowed over a 10-year period. No funds of the parish would be used.

The maximum interest on the certificates is not to exceed 3.35 percent per year.