RESOLUTION NO. RS2007-1865
A resolution approving Amendment No. 2 to the Lease Agreement between the Metropolitan Government (“Tenant”) and Meharry Medical College (“Landlord”) for premises for Metropolitan General Hospital.
Whereas, the Metropolitan Council by Ordinance 092-339 approved the Master Agreement between the Metropolitan Government (“Tenant”) and Meharry Medical College (“Landlord”), into which was incorporated a proposed lease agreement drafted in 1992; and,
Whereas, pursuant to Substitute Ordinance No. 094-1126, the Metropolitan Council amended Section 2 of Ordinance 092-339 by deleting the 1992 draft of the lease agreement between Tenant and Landlord and replacing it with the existing Lease Agreement between the parties, which is dated December 4, 1994 (“Lease”); and,
Whereas, pursuant to the same Substitute Ordinance No. 094-1126, the Metropolitan Council further amended Section 2 of Ordinance 092-339 by adding, in pertinent part, the following sentence: “Any amendment to the Lease Agreement shall require the approval by resolution of the Metropolitan Council, which must receive at least twenty-one (21) affirmative votes prior to the amendment becoming effective”; and,
Whereas, under the Lease, Landlord was obligated to renovate the former George Hubbard Hospital for use as Metropolitan General Hospital; and,
Whereas, Landlord financed the renovation by revenue bonds issued by the Metropolitan Health and Educational Facilities Board (“HEFB”) and secured by the rent paid by the Tenant of Four Million ($4,000,000) Dollars on an annual basis; and,
Whereas, in order to realize an immediate financial benefit, Landlord desires to enter into an interest rate swap that will likely result in a refunding of a portion of the bonds issued by the HEFB and will be required to execute documents for an additional assignment of its interests under the Lease to a separate trustee in addition to the trustee already in place; and,
Whereas, several sections of the Lease contemplate that there will be only one such assignment and only one trustee; and,
Whereas, the parties have agreed to amend the Lease to allow Landlord to enter into the swap agreement.
Now, therefore, be it resolved by the Council of The Metropolitan Government of Nashville and Davidson County by an affirmative vote of at least twenty-one (21) of its members:
Section 1. That Amendment No. 2 to the Lease between the Metropolitan Government (“Tenant”) and Meharry Medical College (“Landlord”) attached hereto as Exhibit A is hereby approved.
Section 2. That this resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.
Sponsored by: Brenda Gilmore, Rip Ryman
Attachment(s) on file in the Metropolitan Clerk's Office
& Finance Committee
Health, Hospitals & Social
|Introduced:||April 17, 2007|
|Adopted:||April 17, 2007|
|Approved:||April 26, 2007|