WLKM Radio 95.9 FM
Sturgis city officials held multiple meetings Monday and appear ready to move forward with an offer to purchase Sturgis Hospital.
Officials authorized city manager Andrew Kuk and city attorney TJ Reed to execute and approve a letter of agreement between the city, the hospital and Asker Corp., to sell the hospital to the for-profit entity, based out of Southfield, for $3 million. The acquisition would release all financial obligations between the city and hospital.
The direction was taken after a meeting in the morning with Sturgis City Commission, another later in the day with Sturgis Hospital board and a subsequent meeting with Sturgis Building Authority.
The city will still be on the hook for settling the hospital’s bond responsibility. That would amount to $8.7 million, or just under $5 million after the sale. The $3 million from the sale would be placed into an escrow account and applied toward that bond debt.
The city will look at ways to minimize the impact of the financial burden, which the city had to assume in order to have the hospital attractive enough to potential buyers, a move that also maximizes the hospital’s ability to remain open.
