The New York State budget extender passed by the state legislature on Monday includes $300 million for Mohawk Valley Health System to build a new hospital in downtown Utica.

MVHS President and CEO Scott Perra says that's the announcement hospital officials had been waiting for.

Perra says once the final version of the 2018 budget is passed, MVHS will work with the Governor's office and the State Department of Health on how the $300 million grant will be paid.

He says MVHS will then be able to move forward with the development of a new hospital, including the design process.

“The journey to get to this point has taken more than two years,” stated Norman Siegel, chairman of the MVHS Board of Directors. “Now we can really begin to create the vision of a new healthcare future for the Mohawk Valley and make it a reality. It’s an exciting time for our community, our board and our healthcare family.”

The project is expected to cost $480 million, with the remaining $180 million coming from MVHS capital, bonds and fundraising.

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