The City of Fulton will earn more than $300,000 from its settlement with the former Lee Memorial Hospital.
The Fulton Common Council approved two agreements in a special meeting Tuesday night. The agreements eliminate the city’s claim to the land beneath the hospital and the medical office building next door. The vote was unanimous, 4-0, with Council members Kim Roy and Dan Knopp absent.
City officials inserted the city into Lee Memorial’s bankruptcy proceedings at the last minute, after learning that the original agreement that turned Lee Memorial over from the city to a private non-profit group contained a clause that gave the land back to the city if the hospital ever closed.
The city will receive:
- $175,000 for giving up its claim to the land beneath the former hospital;
- $25,000 for giving up its claim to the land beneath the medical office building next door;
- At least $137,466 in delinquent taxes when the medical office building is sold by the bankrupt hospital to Oswego Health.
Lee Memorial’s creditors also agreed to give up a claim that the city owed the defunct hospital nearly $13,000 in payments for water and sewer services.
“I think we did the best we could do. The alternative was to go to trial. It would take two years and cost $50,000,” said Mayor Ron Woodward.
Alderman Tom Kenyon praised the administration for “sticking to our guns instead of just getting the water bill (dismissed)….It’s the best deal we could get.”
“Everybody stuck together and we got something for the taxpayers,” said Alderman Daryl Hayden.
Woodward said Oswego Health will buy the medical office building and intends to continue to use it as office space for doctors and specialists.
While the urgent care center that Oswego Health operates inside the former hospital is exempt from property taxes, Woodward said the medical office building will stay on the tax rolls.