Needles, CA: Needles City Council Members approved Asset Purchase Agreement with Community Healthcare Partners, Inc. extending real estate closing another 6 months.
Members of the Needles City Council approved, during the Needles City Council Meeting held on Tuesday, July 14th, 2015, the adoption of Resolution No. 2015-38 approving a third amendment to the Asset Purchase Agreement between Community Healthcare Partners, Inc., and the City of Needles, extending the real estate closing for another 6 months.
**** Agenda Item Packet: ****
According to the City of Needles, on Tuesday, March 10th, 2015, the Needles City Council approved a Second Amendment to Asset Purchase Agreement extending the real property closing on the hospital sale to Saturday, August 31st, 2015.
Staff has been in communication with the Bureau of Land Management and it’s apparent that the transfer of the federal government’s revisionary interest will not be completed by that date (see attached Estimated Timeline).
In addition, it’s unknown at this time as to whether the Bureau of Land Management Office of Valuation Services will require a new appraisal since the one we currently have is almost 2 years old.
The attached Resolution and Third Amendment to Asset Purchase Agreement will again extend the real property closing to 45 days after receipt of the Bureau of Land Management clearance or Thursday, February 25th, 2016 if Bureau of Land Management determines that the appraised value remains current and valid (as per the appraisal dated July 2013) and a new appraisal is not required or Wednesday, May 25th, 2016 if Bureau of Land Management determines that market conditions indicate the appraised value is no longer valid and a new appraisal is required, but in no event shall the Real Property Closing extend past Thursday, June 30th, 2016.
As for the fiscal impact: according to information from the City of Needles, Delay in the City of Needles’ receipt of the real property funds due and owing.
As for the environmental impact: according to information from the City of Needles, none.
Both City of Needles Mayor Edward T. Paget and Needles City Council Member Robert Richardson, M.D. were absent from this agenda item due to conflicts of interest.
Vice Mayor Jeff Williams served as City of Needles Mayor for this item and did not vote on this agenda item.
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For more information regarding the Needles City Council Meetings, please contact Dale Jones in the City Clerk’s Office at the City of Needles at: 1 (760) 326-2113 Ext. 345.