Commissioners approved a resolution for the $25 million during a special called meeting Thursday morning.
The resolution replaces an original one, passed in December 2012. According to the new resolution, Hutcheson owes at least $70 million.
Walker County gave its approval to the $25 million, which is essentially a short-term (two-year) bond, on Feb. 7.
The money will be used to pay off some of some of the hospital’s debt, particularly $12 million owed to Medicare. The Medicare debt carries an 11-percent interest rate, compared to a 1-percent interest rate on the bond.
Catoosa commission chairman Keith Greene said, “The debt to Medicare is the driving point (for approving this bond for Hutcheson). With its 11 percent rate, (Hutcheson) would never get ahead.”
“We need to keep in mind that this debt was incurred by a previous administration,” commissioner Jim Cutler said. “We are slowly working on turning the hospital around.”
Hutcheson also owes $10 million to vendors, according to the new resolution. The original resolution listed vendor debt at $5 million. Hutcheson will use $2 million of the $25 million to help pay down the vendor debt.
Also, about $11 million of the money, hospital officials have said, will be used to upgrade and replace outdated equipment at the hospital.
“Walker and Catoosa did what they had to do,” said Dade County commissioner Robert Goff, who attended Thursday’s Catoosa commissioner’s meeting. “We support them in their action. It’s a win-win situation.”
Hutcheson’s $70 million debt also includes $20 million to Erlanger Health Systems, which oversees and manages Hutcheson, and $28 million to Regions Bank.
Hospital Authority board makeup
The resolution also calls for a change in the makeup of the Hospital Authority’s board of trustees.
The board’s current makeup is 4-3-2: four representatives from Walker County, three from Catoosa County, and two from Dade County.
That makeup has been based on population, but officials are saying Walker and Catoosa’s populations have grown, while Dade’s has not.
Walker and Catoosa have approved a 4-4-1 board makeup: four representatives from Walker, four representatives from Catoosa, and one representative from Dade.
Dade County has rejected the 4-4-1 makeup and approved a 5-5-3 setup, according to Goff.
If an agreement cannot be reached, then the Georgia legislature will have to decide.
Goff and fellow Dade commissioner Ted Rumley, along with Dade County attorney Robin Roberts, attended Thursday’s commissioners’ meeting. The meeting was preceded by a closed-door session lasting more than an hour.
Catoosa commissioners voted on the resolution for the bond anticipation note following the closed meeting.
The resolution also calls for changes to the trustee appointment process to make it a more streamlined, fair and equitable system.
The guy interesting to watch is Burkhart. There isn’t an issue that he won’t get stirred up. When he was in office everything seemed to be a crisis and everyone was at each other’s throats.
Did Judd have problems with other FO members and the County Commissioners as well?
Conflict of interest with property? How many properties along the improved Cloud Springs Rd have Judd’s name as owner or partner?
Judd seems to like property deals. Very interesting to watch.
Jobs
Prestige for the city (depending on who came in)
More investment/jobs (depending on who came in)
To force the Sunday sales issue to a head
Increased competition lowering prices locally
Attracting customers bringing Tn $ to other Ft. O business
Jobs? If you de- annex the property,by definition,the jobs will be outside the city. Read the article.
Prestige? On property more or less expelled from the city? Read the article.
More investment? How will that benefit anyone inside the city if the parcel is OUTSIDE THE CITY? Read the ARTICLE!
To force the Sunday sales issue to a head? No, it's to put more money in the pockets of NWGB shareholders. Says so right there in the third paragraph. (Psst...read the article)
Increased competition (belly laugh) lowering prices locally. No. It's about NWGB getting top dollar for a speculative investment that has gone way sour. If you had read the article,I wouldn't have to explain it to you.
Attracting Tn customers bringing TN $ to their businesses. - Tennessee already has Sunday sales.Unless it is a merchant that doesn't already exist there,what possible reason would there be to come there to shop?
Look,my point is that this doesn't pass the smell test. A city councilman arguing and voting against the interests of his constituents (coincidentally to benefit a bank in another town) is the kind of stuff that undermines the public's confidence in their elected leaders.
Jobs for Ft O. residents that live and work and shop in Ft.O.
Presige for possibly a Target or even a Macy's. Almost anything but a Dollar General that tiny Ft. O can brag about locally. Yes, a teeny stretch, but you can get there.
More investment can come to Ft. O mere feet from whatever this thing could turn out to be. A building boomlet is easily within reason.
Are you insinuating that Mr. Gray would profit from this particular deal directly or be in the pocket of NWGB? Sure seems that way. Tell us your reasoning for saying so. Seems to me he wants business here, but bullheaded thumpers don't share his same ideals.
And finally, if Kroger changed their mind, or Publix was interested, Bi-Lo and Wally World would cut prices. That is a no brainer despite your belly laugh. Ask a kindergartener.
The big picture is NOT only about alcohol. The lack of Sunday sales prevents an interested investor from coming to Ft. O. What would come along with that investmentis more than the ability to buy a tallboy on Sunday however. And ALL of this is pure speculation with none of us knowing who or what is potentially bypassing us for greener pastures.
I said that this doesn't pass the smell test. It's funny how these things always seem to work out for the people that can afford to have them work out in their favor.You know, he could say unequivocally
"I, Earl Gray, do hereby affirm that I have received nothing of value,no promises of same or any reward whatsoever for proposing this act" And yes, I'd be satisfied. Otherwise, welcome to Chicagoglethorpe.
Macy's? Thanks for the laugh. keep 'em coming. (Macy's doesn't sell alcohol on any day of the week)
Publix or Kroger is not going to make WalMart lower their prices. They are already much higher than WalMart's prices.I like Publix, I wish they would come here,but their prices are nothing to write home about. Kroger is union,for goodness sake.Their prices (like BiLo's) are crazy-high. Their specials are okay,but their everyday prices are outrageous.You must not shop much.
And lack of Sunday sales has not discouraged :Home Dept, Lowe's,Applebee's (who would really stand to benefit),Texas RoadHouse (Have you seen the lines there on Sunday? Saturday?.They're doing fine) O'Charleys, Panera Bread, Zaxby's,..I could go on and on.And again, I'd love to see Sunday sales.BUT- The strong arm tactics by the bank are over the top and ham handed. I hate to see public officials doing things that benefit a tiny slice of their overall constituency.
What possible motive would Earl Gray have for trying to get this passed? It would seem that this parcel being taken off of city tax rolls would work against the interests of the people that he is elected to serve.Why would a council member do something that would benefit a wealthy, powerful, narrow interest like NWGB. Residents need to ask themselves this. And CCRES40 makes a good point here-NWGB knew that the city didn't allow Sunday sales when they lent/bought the property. It looks like a speculation that went boom and now somebody wants to make the public pay the tab (through decreased tax receipts).This is wrong.But the question remains-Why would any city councilman want lower revenues to support the services that the city provides?
Jobs
Prestige for the city (depending on who came in)
More investment/jobs (depending on who came in)
To force the Sunday sales issue to a head
Increased competition lowering prices locally
Attracting customers bringing Tn $ to other Ft. O business
Is any of that worth all this trouble? I don't know. I personally could forgive Mr. Gray a pat on the back for doing what I hope he thought was right. Of course to keep the land in Ft. O with Sunday sales is win/win all around. Will it happen? Looks like it's up to Mr. Burkhart getting on the council.