A resolution to support the development of West Maui Hospital and Medical Center appears to have stalled in the Maui County Council after testimony from Mayor Richard Bissen’s administration.

County Executive Josiah Nishita said Bissen supports a West Maui hospital, but Nishita expressed concerns about the county serving as guarantor and approving a $20 million special-purpose revenue bond for medical facilities. “General questions” It includes an ex ante assertion that the investment poses low risk.

“I am not aware that our bond advisor considers this a low-risk investment.” Nishita said this at a meeting on October 30. “I actually believe it’s the opposite.”

Council members postponed the vote on the resolution. They are tentatively scheduled to refer the issue to the district’s Disaster, Resilience, International Affairs and Planning Committee on Friday.

Committee chair Tamara Paltin plans to have more meetings with developer Newport Hospital Corp. as well as Nishita and state and county finance officials.

A number of West Maui groups, along with council members, support the development of a medical center that could treat trauma and stroke victims in a timely manner and eliminate the 45- to 65-minute drive to Maui Memorial Medical Center in Wailuku.

Council president Alice Lee asked Nishita to tell her what he proposed to help develop the hospital.

“Tell us how this can be done” he said. “How do we do this? There must be a way.”

JoAnne Johnson-Winer, president of the West Maui Hospital Foundation board of directors, said she has been talking to Bissen management for a year and a half and this is the first she has heard that management has reservations because of the risk.

Johnson said the previous administration’s finance director and bond adviser had no problem supporting the special purpose revenue bond.

Board counsel Charles Slaton said hospital representatives never met with Nishita about his concerns about risk.

“We were really surprised” said Slaton.

Nishita said he is willing to work with West Maui Hospital officials to move the issue forward and return to the committee for further discussions.

In 2023, the state legislature passed House Bill 1255, which authorizes a special purpose revenue bond to be sold by West Maui Hospital and Medical Center to fund its development.

The bill allows investors to earn tax-free gains from the government on special purpose revenue bonds.

Hospital officials say the cost of developing the 14.9 acres on Kaka’alaneo Road in Kaanapali has increased significantly and estimate the price will be around $120 million to $140 million.

West Maui Hospital officials, affiliated with Newport Hospital Corporation, received a state health needs approval certificate in 2009 that envisions a $45 million project providing medical and surgical services along with emergency services blended with operating room services, radiology, clinical laboratory and pharmacy. beds.