MARSHALL — Plans for the Avera Health system to bond for projects including a remodel of the hospital pharmacy in Marshall got approval from the Marshall City Council this week. On Tuesday, the council held a public hearing on a bond issuance from the South Dakota Health and Educational Facilities Authority.

Although the city needed to hold a hearing on the bond issuance, it didn’t mean Marshall was taking on any obligations to pay the bonds, said E.J. Moberg, Marshall director of administrative services.

“It will not affect us in any way,” Moberg said.

The Avera Health system is seeking a total of $465 million in revenue bonds, of which $3 million will be used for a project in Marshall.

“This bond is related to several projects across the Avera footprint, as well as planning for some debt refinancing,” said Tracy Deutz, vice president of operations at Avera Marshall. The portion affecting Marshall would be for a remodel of the hospital pharmacy, Deutz said. Avera Marshall plans to move the pharmacy from its current location on the third floor of the hospital down to the first floor.

“The city is being asked to provide host approval for this (bond) issuance, in compliance with IRS guidelines related to tax-exempt conduit revenue bonds,” Moberg said. “We’re required to do this because the project financed by the bonds is within the city limits of Marshall.”

The hearing didn’t draw any questions or comments from the public. Members of the city council unanimously passed a resolution of approval supporting the bonding.