The county-owned hospital is in negotiations with
A bankruptcy court judge will have a status conference
The bidding process would make CHS a stalking horse bidder, which means the price CHS negotiated with
If no one outbids the stalking horse, the sale will automatically -- and bindingly -- go to CHS.
Brown said a judge would hear any objections to the motion of approving the bidding process before making a ruling.
While CHS has signed a letter of intent with
Once the judge approves the bidding process, Brown said an asset purchase agreement could be finalized.
At that time, the
Once the notice advertising the sale is published, county residents have the option of filing a petition asking to take the sale to a voter referendum for approval. The petition would require 1,500 signatures to take the matter to a vote.
If a successful petition is not filed, the hospital can go to sale without further objection.
After 30 days,
Brown said another important step in the sale process -- a step he originally believed was going to be handled this week -- would be taken up later.
To facilitate the sale structure of the county-owned hospital to CHS, the supervisors applied to the
The move would allow CHS to prepay property taxes as part of the sales process. Those prepaid taxes would be part of an overall purchase price that would be sufficient to pay off the bankrupt hospital's debt.
The REDA designation allows multiple municipalities to apply jointly to issue revenue bonds based on the anticipated future tax revenues of an economic development project, MDA spokesman Jeff Rent said.
The bond proceeds can be used to build or improve infrastructure needed for the project, and the taxes collected from the project are used to service the debt on the bonds.
Brown said last week he believed the board would vote on the matter this week, but later learned the board was no longer meeting this week.
The next board meeting is
"The REDA would still have to be approved for everything to happen, but it's not important timeline wise as the bankruptcy hearing is," Brown said. "If it wasn't approved, you'd have to come up with some sort of alternative plan, but I'm reasonably confident it will be approved."
It has been financially independent since 1974 and does not receive tax support, but is backed by a 5-mill standby tax that the
The county supervisors appoint the hospital's volunteer trustees.
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