Posted: August 27, 2010

By Philip Newswanger

philip.newswanger@insidebiz.com

Sentara Healthcare asked for $100,000 for a new helicopter.

Eastern Virginia Medical School asked for $250,000 to finance construction of a new medical and education research facility in Norfolk.

Neither one got the full amount they requested from the Norfolk Economic Development Authority.

But the authority did grant them money - $25,000 a piece, and they have the option of coming back after a year and asking for more.

Both groups presented their requests at the authority's meeting in July. The seven-member board voted on the amount and the requests last Wednesday. The board agreed the authority could not fund the full amounts requested because of budget cutbacks.

The board approved the $25,000 for Sentara on a 5-0 vote. Henry "Sandy" Harris III, the chairman, and Robert Garris abstained because they are members of Sentara's board.

Board member Michael Lee thought the board could approve more than the $25,000.

"We can do more later," said Vice Chairman Jerry Robertson, who stood in for Harris during the discussion of the grant for Sentara.

Sentara plans to purchase a new Nightingale helicopter that will cost $7 million and will come equipped with the latest technology, including night vision and a "myriad of cockpit advances." The existing Nightingale is 25 years old. The new Nightingale will have a life span of about 30 years.

Omniflight Helicopters Inc. of Tennessee operates Nightingale under contract to Sentara. Two pilots, a nurse and a paramedic are attached to the Nightingale and are on call 24/7.

Sentara will contribute $3.5 million toward the cost of the helicopter. The remainder is expected to come from the community, localities and corporations.

Rod Woolard, director of Development for Norfolk, said Sentara has already ordered the helicopter.

EVMS is building a four-story, 100,000-square-foot research and education facility and renovations of two other existing buildings, costing $80 million. The construction costs alone will top $60 million, which includes a parking garage.

In addition to new classrooms and laboratories for medical students, EVMS has plans for a 26,000-square-foot modeling and simulation space. The additional space is supposed to train doctors and health care professionals that are needed over the next 10 years.

The $250,000 EVMS requested would cushion the costs of the new facility.

The authority approved $25,000 instead in a 7-0 vote.

"I would like to do more," Harris said. "But we don't have the money. "

Harris and other board members agreed to grant EVMS more money after a yearly review.

Robertson said the authority's funding in the future is murky.

"EVMS is definitely good for Norfolk and good business for Norfolk," Harris said.

The state anted up $59 million, so EVMS has to close a $21 million funding gap.

The medical college was established in 1973 with a $17 million budget.

Today, the school's budget is $199 million and employs 1,500 workers.

Woolard pointed out to board members in June that the city has given $2.2 million to EVMS for site and infrastructure costs and gives EVMS $600,000 every year for capital improvement projects. nib