Sturgis city officials said the city completed transactions on a multiple-party letter agreement “releasing Sturgis Hospital Inc. from the terms of a sublease” tied to hospital improvements dating to 2004.
Completion of the transaction allowed Sturgis Hospital to finalize the terms of its acquisition by Asker Corp., including a management agreement and financial support of the hospital. That agreement will be in place until the acquisition is approved by the Michigan Attorney General’s office.
The agreement included a $3 million payment to the city in exchange for release of all obligations of Sturgis Hospital Inc. under a sublease on hospital improvements, including 10 years of remaining bond payments totaling just under $8.5 million. The agreement also provided for the release of all city liens and security interests in the hospital created as part of the sublease. The city itself continues to be responsible for remaining payments under the bond issue, and payment from the transaction will be used to offset a portion of those remaining costs, the Sturgis Journal reports. Read more.
