Nevada County Picayune and Gurdon Times Newspaper Archive

$275,000 to Come from Sale of Home Health Unit in July;

JPs Agree to Pay Remaining $25,00 from County General Nevada County Hospital's problems with the General Electric Capital Corporation are finally over.

In a special called meeting Friday afternoon, Glenn Vasser, hospital attorney, informed the board of governors GECC accepted the hospital's terms for $300,000 for full satisfaction of the debt. He said there was $275,000 set aside, and with $25,000 from the Nevada County Quorum Court, the debt can be settled.

Vasser said the board would ask for a full release from GECC and have the matter closed out this week. "I see no problem in getting the money," he said. "Then, we won't have to sell anything." The board was informed it must approve the arrangement, sign the necessary documents and the deal would be consummated.

Board member Duncan Culpepper made the motion to accept the agreement with GECC upon the approval of the quorum court. The panel also agreed to allow board president Don Mitchell to handle the remaining paperwork on the matter.

"This is an excellent settlement," Vasser said. "I feel it's fortunate for the hospital and the county both to settle on these terms."

Bill Taylor questioned the hospital's electric bills, asking if they would be offset as the city is still collecting the sales tax which was originally passed for the hospital.

Prescott Mayor Howard Taylor said it was the city council's contention when the hospital closed all appropriations for it ended. "I hope the tax stays in place so we can use it for city improvements," he said.

In a special meeting of the Nevada County Quorum Court Monday night, the justices agreed to fund the needed $25,000 to pay off GECC.

Nevada County Judge John Barham said the county has received some additional unexpected revenues. These funds were added to the proposed 1995 general revenue and deducted the $25,000 for the hospital's indebtedness.

Vasser told the court he was surprised GECC accepted the $300,000 figure as the property has an appraised value of about $500,000. "I never believed we could have settled for this amount," he said, "especially since (GECC) knows the value of the building."

One of the justices asked Vasser if the hospital would belong to the county once the deal is completed. Vasser said the hospital's Board of Governors still has control of the functions at this time. He said the court does not need to have any control of the hospital at this time in order to protect the county from any other debts the NCH may owe if other bill collectors come calling.