New Ampla Health clinic moving forward
Ampla Health’s plans to construct a new clinic in Yuba City received a boost on Tuesday when city officials agreed to participate in a funding mechanism that will result in taxexempt financing for the project.
The new 11,830-square-foot clinic, expected to cost approximately $5 million to construct, will be located at 355 Samuel Drive, Yuba City. The new primary care clinic will replace the nearby Ampla Health Richland Medical facility that is comprised of several modular buildings.
“This new facility will triple the size of the current one to better meet the demands of the population we serve,” Benjamin Flores, president and
CEO of Ampla Health said. “The current facility is one of the oldest facilities we have. We are very grateful for the Housing Authority for allowing us to have our clinic there, which are nine modulars that have been adapted throughout the years. This new clinic is really going to be a state-ofthe-art facility that provides modern services for the community.”
At a meeting Tuesday, Yuba City officials agreed to assist Ampla Health by being a conduit for $10 million in tax-exempt financing for the project. Conduit financing is funding provided to an organization for a largescale project through the issuance of municipal bonds.
The city will have no financial obligation for the projects, with all costs of issuance, debt service, risk, and liability being borne by Ampla Health. This was the first time the city participated in such a funding mechanism, though it was modeled off an identical financing structure recently employed by a city in central California.
“If it will improve the quality of life for our residents and the city is under no financial obligation to fund the project, to me it’s a winwin,” said Yuba City Mayor Shon Harris. “I understand it was a new funding mechanism that one other city has done, so it shows that our council is willing to look outside the box and be open to new ways to help our community be better.”
In addition to helping Ampla construct the clinic, the $10 million will be used to refinance some of the organization’s other debts, Flores said.
“They showed very good support for Ampla Health and the project we are doing, so we are very pleased,” Flores said of city council members.
Crews began preparing the site for work a few weeks ago and are currently installing plumbing underground. Ampla Health leadership held a groundbreaking ceremony at the site on Wednesday. Flores said the project is expected to be completed by January 2021. The effort has been years in the making, he said.
“It took us some time but it is happening now,” Flores said. “This facility will provide primary care services for the underserved and uninsured within our special medical population and will increase access to people in Yuba City.”