[05/01/02]Trustmark National Bank will finance $1.6 million of the cost of River Region’s new hospital and the company will repay the bonds at less than 4.5 percent interest.

The Jackson-based bank’s bid was lowest for the publicly financed portion of the $123 million hospital project. The Warren County Board of Supervisors accepted it Monday.

River Region Medical Center, which opened Feb. 17 on U.S. 61 North, will repay the money, plus interest, over eight years and Warren County will forego collecting higher taxes on the developed land for that period.

“TIF,” for tax increment financing, has been used often by city and county governments to help finance development of sites that will eventually be added to tax rolls. No public money is spent in the process, and the county treasury is not responsible for repayment in the event of default.

Supervisors originally approved $790,000 for the work, but raised the amount to $1.6 million when asked by River Region.

A second bid was from Duncan Williams, a Memphis investment banker, submitted through BancorpSouth Bank. Trustmark offered an interest rate of 4.43983 percent for an overall interest payment of $368,950. Duncan Williams offered an interest rate of 5.239290 percent for a gross interest payment of $435,385.

The bonds will be paid off over eight years.

After the two bids were checked by W. Larry Harris, the Jackson bond attorney working with the county on the bond issue, the board voted to accept Trustmark’s low bid.

In another economic development move, the board authorized District 5 Supervisor Richard George, board president, to sign the application for a Community Development Block Grant from the Mississippi Development Authority for expansion of the sewage treatment lagoon at Ceres Research and Industrial Interplex.

The $650,000 grant will allow the Warren County Port Commission, which oversees the industrial park at Flowers, to improve the three lagoon cells operating now and activate a fourth. This will allow the treatment plant to handle expansion that includes two tier one suppliers for the Nissan vehicle assembly plant near Canton and a $5 million expansion at Tyson Foods.