Ord 35-2012 8/7/2012ORDINANCE NO. 35 -2012
Ordinance Of The City Council Of The City Of Wichita Falls
Authorizing The Wichita County -City Of Wichita Falls, Texas Hospital
Board To Convey 10 Tracts Of Land To United Regional Health Care
System, Inc. Pursuant To Previously Approved Transactions;
Conditioned Upon Compliance With Applicable Texas Health & Safety
Code Provisions
WHEREAS, the Wichita County -City of Wichita Falls, Texas Hospital Board
(Hospital Board) owns 10 tracts of land utilized in connection with the former "General
Hospital" in Wichita Falls, which are listed as follows and known hereinafter as the
"Hospital Properties ":
WHEREAS, the relevant parts of Texas Health & Safety Code §§ 265.037,
265.071, and 265.072 authorize a joint city- county hospital board to sell land as long as
the sale is authorized by the County and City, as follows:
Texas Health & Safety Code § 265.037. Hospital Facilities; Other Property
(a) ...
(b) The county or the municipality may lease or convey title to, or any other
interest in, all or part of the county's or municipality's hospital facilities,
including real and personal property, to the board on terms agreed to by the
county or municipality and the board.
Address
Abbreviated Legal Description
1.
607 BAYLOR ST,
LOT 12, BLK 3 TRUEHEART 2
2.
1716 7TH ST.
LOT 16, BLK 3 TRUEHEART 2
3.
1718 7TH ST.
LOT 15, BLK 3 TRUEHEART 2
4.
700 BROOK AVE.
N30' OF E80' LOT 8 & E80' LOT 9
BLK A WARFORD
5.
1705 7TH ST.
W50' OF N30' LOT 8 & W50' LOT 9
BLK A WARFORD
6.
1620 8TH ST.
LOT 1, BLK 1 W G HOSPITAL ADD
BLK 258 ORIGINAL TOWN, WF
7.
1500 8TH ST.
LOT 7 -A BLK 258 N &H S/D (also known as Dimock
Bldg)
ORIGINAL TOWN, WF
8.
1722 7TH ST.
LOT 13A REPLAT LOTS 13/14
BLK 3 TRUEHEART 2
9.
710 BROOK AVE.
LOTS 4 THROUGH 7 S20 FT LOT 8
BLK A WARFORD
10.
711 WARFORD ST.
LOTS 12 THRU 15
BLK A WARFORD
WHEREAS, the relevant parts of Texas Health & Safety Code §§ 265.037,
265.071, and 265.072 authorize a joint city- county hospital board to sell land as long as
the sale is authorized by the County and City, as follows:
Texas Health & Safety Code § 265.037. Hospital Facilities; Other Property
(a) ...
(b) The county or the municipality may lease or convey title to, or any other
interest in, all or part of the county's or municipality's hospital facilities,
including real and personal property, to the board on terms agreed to by the
county or municipality and the board.
(c) The board may own, receive, encumber, sell, lease, or convey any interest
in real or personal property, including gifts and grants. However, the board
may not encumber, sell, lease, or convey real or personal property unless the
commissioners court and the governing body of the municipality by resolution
approve the transaction... .
Texas Health & Safety Code § 265.071. Official Action
(a) The commissioners court by order and the governing body of a
municipality by ordinance may order the sale, lease, or closing of all or part of
a joint municipal and county hospital, including real property, owned and
operated by the county and municipality.
(b) The order and ordinance must include a finding that the sale, lease, or
closing is in the best interest of the residents of the county or municipality,
respectively.
(c) A sale or closing may not take effect before the expiration of the period in
which a petition may be filed under Section 265.072.
Texas Health & Safety Code § 265.072. Petition and Election
(a) A petition requesting an election on the sale or closing of the hospital may
be presented to the commissioners court and the municipal governing body
before the 31st day after the date the commissioners court and the governing
body order the sale or closing.
(b) The petition must be signed by at least 10 percent of the qualified voters of
the county and any part of the municipality that is not in the county.
(c) On receipt of the petition, the commissioners court and the governing body
shall order and conduct the election. The commissioners court and the
governing body may sell or close the hospital only if a majority of the qualified
voters voting at the election approve the sale or closing.
(d) The number of qualified voters
municipality that is not in the county
recent official list of registered voters.
of the county and any part of the
is determined according to the most
WHEREAS, on May 1, 2007, the City authorized, in compliance with the
aforementioned provisions of the Texas Health & Safety Code, the Hospital Board's
execution of the First Amended Master Agreement, First Amended and Restated Lease,
First Amended and Restated Sublease Agreement, Second Restated and Amended
Management Contract and Lease Agreement, and the consummation of transactions
contemplated therein, as well as the cessation of operations at Wichita General Hospital
and consolidation of the services and functions previously carried on at Wichita General
Hospital into the 11th Street campus, as contemplated in campus consolidation
proposals by United Regional Health Care System, Inc. (United Regional);
WHEREAS, the aforementioned agreements provided for United Regional to
lease the Hospital Properties from the Hospital Board until completion of the Bridwell
Tower, and then to be able to terminate the lease and, as a possible option, to transfer
the Hospital Properties back to the Hospital Board;
WHEREAS; in 2011, United Regional notified the Hospital Board that it no longer
needed the Hospital Properties; triggering the Hospital Board's obligation, pursuant to
the First Amended Master Agreement, to choose one of three possible courses of
action:
(a) to re -take possession of the Hospital Properties; or
(b) not to re -take possession of the Hospital Properties and thereby to permit
United Regional to take any and all action, in any manner elected by United
Regional, in connection with the properties, without a need for the further
consent of the Hospital Board, (such actions include, but are not limited to,
the sale or conversion to alternative use of the properties); or
(c) to re -take possession of the Hospital Properties, but also in that notice to
United Regional to direct and permit United Regional to demolish the old
General Hospital prior to the transfer of possession of the properties to the
Hospital Board;
WHEREAS, the agreements provided that retaking possession of the Hospital
Properties would reduce the Hospital Board's share of equity of United Regional by the
value of the Hospital Properties;
WHEREAS, on June 13, 2012, the Hospital Board chose (b), deciding not to re-
take possession of the Hospital Properties and to transfer title of the Hospital Properties
to United Regional, subject to United Regional agreeing to tear down the old General
Hospital within a reasonable period of time (to be specified in an agreement between
United Regional and the Hospital Board).
WHEREAS, subsequently, United Regional informed the Hospital Board that it is
willing to agree to tear down the old General Hospital within a reasonable period of time;
however, United Regional desires the Hospital Board complete all necessary
transactions and approvals to transfer title to the Hospital Properties to United Regional.
To that end, United Regional desires the City re- approve said transfer in accordance
with the Texas Health & Safety Code;
WHEREAS; the City Council finds the transfer of the Hospital Properties to
United Regional was previously approved and is again determined to be in the best
interest of the residents of Wichita County and the City of Wichita Falls.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The transfer of the Hospital Properties to United Regional is hereby authorized
on the terms substantially as described in the option chosen by the Hospital Board on
June 13, 2012, in accordance with documents approved by the City Council on May 1,
2007 (subject to the condition of the Hospital Board as described above that United
Regional agree to tear down the old General Hospital within a reasonable period of
time, to be set forth in an agreement between United Regional and the Hospital Board).
2. The City Manager is authorized to execute all documents necessary to
effectuate the final transfer of the Hospital Properties to United Regional in accordance
with the option chosen by the Hospital Board and as described in the documents
authorized by the City Council on May 1, 2007, in a form to be approved by the City
Attorney.
3. If any section, paragraph, clause, or provision of this ordinance shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
section, paragraph, clause, or provision shall not affect any of the remaining provisions
of this ordinance.
4. In accordance with TEXAS HEALTH AND SAFETY CODE Sections 265.071 and
265.072, this approval is subject to the expiration of the 31 -day period described in
Section 265.072 and the non - submission of a petition requesting an election on the
transfer of the Hospital Properties in compliance with Section 265.072.
PASSED AND APPROVED this 7t" day of August, 2012.
MAYOR
ATTEST:
City Clerk