HomeMy WebLinkAbout2002-07-22 02-291 ORDERItem No. m_vo
Date: July 22, 2002
Item/Subject: ORDER - Authorizing the City Manger to Execute an Assignment, Assumption,
Release, Guarantee, and Consent Agreement with Acadia Healthcare.
Responsible Department: legal
Commemary:
Acadia HospiW leans end operates We facility rotatory Imo%%m the Hope House on Illinois Avenue. Acadia
Hospital.sests pevmission from the City to assign its leasehold interest W Acadia Heddecate, a relatalwqumtioa The
purpose of We assignment is W permit Acadia Healthcare W maximize its Medicare red ntrosoments. In order to
effimate this trarnsfier, , Acadia nAI be assuming all ofPenquis Cap's obligations under several agreements, ant therefore
also requires the City to consent W thern assuming those obligations and W the release ofPenquis Cep. pmWe Cap
noted as the developer on the project and administrated its nothing and operation and essentially arced as guamntor for
Acadia Hospial.
The Business; & Economic Development Concessions recommended acceptance of the assignment and execution
of the Assignment, Aswmption, Release, Guamntce, and Consent Agreement at its July 16, 2002 mceling.
Departhent Hem
Manager's Comments:
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City Manager
W Inf rrmatton:
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Budget Approval:
a
Legal Approval:
City Solicitor
02-291
F AssignedroCoundlor nothm July 22, 2002
Q-1
CITY OF BANGOR
(TITLE.) ORDER, Authorizing the City Manger to Execute an Assignment, Assumption,
Release, Guarantee, and Consent Agreement with Acadia Healthcare.
By the 0G, CWK9 of d5e City of fiangan
NOW, THEREFORE, U WORDERED by the City Cami of No CRY of Bangor,
That the Goy Manger is hereby authorized to execute an Assignment, Assumption, Release,
Guarantee, and Consent Agreement with Acadia Healthcare, In a form W be approved by the
City Solicitor or Asslstsnt City Solicitor.
IN CITY COUNCIL
July 22, 2002
Passed
Ci
02-291
Title. Authorising the City Manager to
Eaemte m bsig®ent, Nsv Ptinn
Release, Cuarantee and Co ent
Agce [ with Acadia Healthcare
Assigned to
Councilor
MEMORANDUM
T0:
Business & Economic Development Committee
Form:
John K. Hasner, Assistant City Solicitor
Subject
Assignment of lease from Acadia Hospital to Acadia Healthcare
Data:
July 16, 2002
Acadia Hospital treses and operates the facility f esly mown as the Hope House on lllmois Avenae. Acadia
Hospital seeks permission from the City to assign its leasehold interest W Acadia Hemmcare, a related
coRoratlon. The puRose of the assignment is to permit Acadia Healthcare to maximize its Medicam
reimbursements. In order to effzcmme this author, Acadia will be assuming all ofPeogvis Cap's obligations
order several agreements, and therefore also raluires the City to consent to them assuming those obligations
arta to the release ofPensims Cap. Penquls Cap noted as $e developer on the project and administrated its
funding and operation and essentially acres as a adorentor for Acedia Hospital.
Staff recommends this Committee recommend in the Council Graz it assent to the assignment and
authorize the City Manager m execute the necessary document.
1KH
cc: Bangor City Council
Ed Barrett, City Manager
Iodation Daniels, B&ED Director
02-291