Wheeling City Council unanimously voted, 6-0, to approve the resolution for Alecto to receive a $5 million TIF bond, along with control of the Ohio Valley Medical Center parking garage.
Wheeling Vice-Mayor Chad Thalman tells 7News reporter Nick Conigliaro the reason they needed to get this resolution settled is because Alecto said they weren't willing to move forward with the purchase until this was completed.
"Once that sale occurs, then the items in the memorandum of understanding would come back before City Council in the form of ordinances," said Wheeling City Manager Robert Herron.
The resolution voted on at tonight's Wheeling City Council meeting involves a new tax rate for Alecto of .17%, a tax incrament financing bond of $5 million, as well as, the transfer of the OVMC parking garage from the city to the Area Developement Corporation which would then lease it to Alecto giving them control of parking.
They can't present the ordinances yet because, "None of that can really start until Alecto actually buys the hospital," said Herron.
The plan for the $5 million tax incrament financing bond is still subject to approval by City Council and the State of West Virginia. According to City Manager Robert Herron and Alecto representatives, they believe this is a good move for the City that doesn't put Wheeling at risk.
"Alecto being a for profit is going to give our community the chance to raise $5 million in bonds because we will have close to $60 million come under our tax rolls that aren't there now," Alecto representative David Croft told Council.
"The increment that will be created will be sufficient to support a $5 million bond issue," said Herron. "Anything above and beyond our agreement, and future agreements, will be the responsibility of Alecto; not the city."
Alecto will also be forced to sign a 40-year lease to have control of the parking garage, which according to Vice-Mayor Chad Thalman will also bring in more revenue for the city.
Wheeling Hospital spokesman Gregg Warren was in attendance and tells 7News the offer given to OVMC by Wheeling Hospital "far exceeded that of Alecto," but the bigger difference between the two.
"Had our offer been accepted, Wheeling Hospital would not have asked for one penny of taxpayer dollars," Warren told 7News' Conigliaro.
Again, none of this is possible until Alecto officially purchases OVMC. This was just a resolution to showcase what the city will be charging and how they're willing to work with them.