The Wrangell Medical Center replacement project took another step toward becoming a reality this week after the Borough Assembly voted to reinstate language in an agreement between the borough, hospital CEO Noel Selle-Rea and Pennsylvania-based InnoVative Capital.
The agreement between the three parties would end a lawsuit filed by the borough against Selle-Rea and InnoVative on Oct. 4 that seeks to have the borough severed from any legal or financial implications arising from an arbitration suit between WMC and InnoVative.
InnoVative is the financial services firm hired by Selle-Rea to obtain funding for the nearly $30 million hospital replacement project.
Mayor Jeremy Maxand said the “yea” votes, although with edits to the final language of the agreement, would enable the borough, WMC, and project team to move forward in an effort to provide Wrangell with a new facility.
“The three parties need to agree on the tripartite agreement to end the lawsuit,” Maxand said. “The hospital board changed the agreement by removing a section stating the USDA loan could not be used to pay the InnoVative fees and costs. They pulled that out, which we did not agree with, so we put it back in and voted to approve it. Now, we’ve sent it back to the WMC board for their approval.”
According to WMC Board President Mark Robinson, no executive session meeting to decide the course the hospital will take has been scheduled yet.
“That is a very high priority for us and we are working to schedule it,” Robinson said.
InnoVative CEO Alan Richman said he is pleased with the vote and looking ahead to what’s next.
“I’m happy the borough has taken action to move us toward a dismissal of their litigation,” said Richman. “I look forward to being told the WMC has also ratified the tripartite agreement so we can be the final party to sign on the agreement. Once the borough litigation is dropped we can quickly move to dismiss the arbitration and put this unfortunate malaise behind us.”
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