Allied Services seeks $12 million in financing

May 09--Allied Services is planning renovations to its main campus in South Abington Twp.

The nonprofit is seeking up to $12 million in tax-exempt financing through the Scranton-Lackawanna Health and Welfare Authority.

"Allied Services has not undertaken a large capital project in quite some time," Michael Ferguson, assistant vice president of insurance and risk management services, recently told Lackawanna County commissioners. "It's been almost 10 years. And through that time, Allied has financed capital improvements on its main campus through our operating margins."

Ferguson said the financing is not for a large, centralized project, but a series of smaller-scale projects upgrading infrastructure, facilities and technology over two to three years.

Commissioners declared the move "is desirable for the health, safety and welfare" of residents Wednesday, a procedural step required under federal law. Scranton City Council introduced a similar resolution at Thursday's meeting.

Ferguson expects Allied to upgrade the rooms at its personal care facility, which is about 20 years old. Other facilities Allied could target include the nursing home, the rehabilitative hospital and the vocational training center.

"As our operating margin has become slimmer in the health care industry and interest rates are low, we felt it was a good time now to borrow some money and continue to invest in our facility," Ferguson said.

Attorney Brian Koscelansky, bond counsel for the county, told commissioners the project carries no liability for the county.

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