Broadlawns Medical Center has sold $10 million in revenue bonds that will be used to finance the first phase of its expansion. “We had initially looked to go out to the markets the first week of October, but with the (condition of the) financial markets, we obviously had to delay,” Broadlawns CEO Jody Jenner said. Underwritten by Wells Fargo & Co., the deal reached last week is expected to close by the end of the month.

The public hospital announced a $44 million expansion early this year. Officials of the hospital, which receives approximately $45 million annually in property tax revenues from Polk County, have pledged they will not seek a tax increase to finance the expansion project.

Jenner said the renovation is still in the design phase, and that he hopes requests for construction bids can go out by late spring. Plans for the first phase include a new emergency department, a new reception and admitting area, surgical department expansion, laboratory and radiology upgrades, a physical rehabilitation center and new outpatient-centered physician clinics. Broadlawns plans to borrow $20 million more through additional bond issues over the next two years.

Finding buyers for the bonds was “a challenge,” Jenner said, noting that they were sold at a discount that increased the interest rate the hospital will pay on them to about 7 percent. Broadlawn also shortened the term of the notes from 30 years to 15 to make them more attractive to investors.