Loan finalization in sight for TMH
Final closing with HUD takes place Dec. 17
December 10, 2008
The Memorial Hospital’s agreement with the U.S. Department of Housing and Urban Development is a done deal.
Members of TMH board of trustees and the hospital’s facility corporation met at a special meeting Tuesday to complete their share of the paperwork that will enable HUD to guarantee the $40.3 million mortgage loan for a new hospital.
On Oct. 1, TMH received word that HUD will guarantee the loan. The loan covers the lion’s share of the project’s $42.3 million cost. The remainder already has been covered by site development at the new hospital location, which is considered an “in-kind” down payment on the building, said George Rohrich, TMH chief executive officer.
“Congratulations,” Sarah Meshak said after the board and corporation members finished approving HUD-required amendments and resolutions.
Meshak, an attorney with the Boulder-based law firm, Caplan and Earnest, LLC., guided members through the numerous motions required for the HUD agreement.
Board members amended their bylaws to conform to HUD requirements. The main change to bylaws requires that indemnification of hospital directors be provided solely through the hospital’s insurance in the event the hospital is sued.
Other measures covered various elements of the loan, including how TMH will pay it off and who will sign paperwork at the final closing scheduled to take place Dec. 17 in Denver.
The latter responsibility fell to Rohrich, who also is TMH Facilities Corp. president. At Tuesday’s meeting he was appointed secretary of the latter organization, which would allow him to sign documents that require signatures from both officials.
The action’s main goal was to ensure the hospital could sign off on final closing documents with HUD. Other corporation members present said they would be unable to attend the closing next week.
Although the board’s piece of the deal is finished, Rohrich stopped short of breathing a sigh of relief Tuesday.
“I’ll be relieved probably late on the 17th when the final papers are signed and : we’re driving home to Craig,” he said. “And then, we can focus just on the construction piece.”