City Has Tentative Deal to Settle Dispute Over Former Hospital

by Contributor | May 4, 2011 8:16 am

The city of Fulton has what the Mayor describes as a tentative agreement to end its claim to any part of the former Lee Memorial Hospital campus.

Mayor Ron Woodward said Tuesday that he and the city’s Clerk/Chamberlain met for five hours Monday with lawyers for the bankrupt hospital’s secured and unsecured creditors, officials of the former hospital, and a hearing officer appointed by the Bankruptcy Court judge.

Woodward said the court asked all parties not to reveal details of the discussions, but he said that the deal hammered out provides “what we feel the city should get out of the sale of the hospital.”

He briefed city lawmakers during a closed-door executive session Tuesday night and said afterwards that if all goes well, the deal could be complete within a week.

The Bankruptcy Court is overseeing the death of the former hospital.  It closed two years ago under a state order.  Oswego Health now operates its urgent care facility in part of the former hospital building and is renovating the rest of it to hold other medical services.

The original hospital was owned by the city.  The agreement that turned the hospital over to a private non-profit group contained a provision that said if the hospital ever shut down, the land beneath it would revert to the city.

The discovery of that old contract last year threatened to derail Oswego Health’s plans to add services and jobs to the former hospital.  The city worked out an agreement to allow Oswego Health to complete its purchase of the hospital building and land while leaving until later the issue of compensation for the city.

That issue now appears to be close to settled.

“It’s a fair offer. You won’t get anything better.  I’d recommend it,” Woodward said of the possible settlement. “It’s the best we can get.”

Prior coverage:

• Oswego Health Plans $17 Million Renovation of Former Lee Memorial Hospital to Fill Building with Services

• Renovation of Former Lee Memorial Hospital Held Up by Land Ownership Issue

• Oswego Health Asks City of Fulton to Give Up Claim to Land Beneath Lee Memorial

• Fulton to Press its Hospital Property Claim in Bankruptcy Court

• Aubertine Secures $4.5M for Fulton Health Care

• Oswego Health Finalizes Purchase of Lee Memorial and Phoenix Health Center Properties

• City: Judge Allows Oswego Health To Close on Hospital Land & Buildings, but City’s Land Claim Will Be Heard

• Work Begins at Fulton Medical Center

Source URL: https://oswegocountytoday.com/news/fulton/city-has-tentative-deal-to-settle-dispute-over-former-hospital/

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