12-01-2011, 05:29 PM
County deal on Drake brings scrutiny
Written by
Sharon Coolidge
Hamilton County may be in trouble over its last-minute deal to sell Drake Hospital to bail out its stadium fund.
A day after the county commission voted 2-1 to sell the rehabilitation hospital for $15 million to UC Health, a bond-rating agency warned the county its credit rating was at risk and the state auditor sent in a team to collect documents about the sale.
“All I can say is we have staff on site retrieving documents related to the lease and sale of Drake,” said Carrie Bartunek, spokeswoman for state auditor David Yost. “We’re taking a look related to the story in today’s paper.”
Separately, bond rating agency Moody’s warned the county it may be put on “credit watch” in the wake of the vote with a “negative outlook” and a “potential downgrade,” county administrator Christian Sigman told commissioners in a memo.
County's bond rating on general obligation debt is Aa2, an investment grade rating.
Sigman was meeting with officials from the state auditor Thursday afternoon.
On Wednesday, Commissioners Todd Portune and Chris Monzel voted to sell Drake Hospital to UC Health for $15 million. That money will be used to cover a deficit in the fund that pays for the county’s riverfront stadiums. The deal was done in secret, with no public discussion.
Commission president Greg Hartmann opposed the deal. Portune is a Democrat; Hartmann and Monzel are Republicans.
The Enquirer will update this story.
http://news.cincinnati.com/article/20111...eakingnews
Written by
Sharon Coolidge
Hamilton County may be in trouble over its last-minute deal to sell Drake Hospital to bail out its stadium fund.
A day after the county commission voted 2-1 to sell the rehabilitation hospital for $15 million to UC Health, a bond-rating agency warned the county its credit rating was at risk and the state auditor sent in a team to collect documents about the sale.
“All I can say is we have staff on site retrieving documents related to the lease and sale of Drake,” said Carrie Bartunek, spokeswoman for state auditor David Yost. “We’re taking a look related to the story in today’s paper.”
Separately, bond rating agency Moody’s warned the county it may be put on “credit watch” in the wake of the vote with a “negative outlook” and a “potential downgrade,” county administrator Christian Sigman told commissioners in a memo.
County's bond rating on general obligation debt is Aa2, an investment grade rating.
Sigman was meeting with officials from the state auditor Thursday afternoon.
On Wednesday, Commissioners Todd Portune and Chris Monzel voted to sell Drake Hospital to UC Health for $15 million. That money will be used to cover a deficit in the fund that pays for the county’s riverfront stadiums. The deal was done in secret, with no public discussion.
Commission president Greg Hartmann opposed the deal. Portune is a Democrat; Hartmann and Monzel are Republicans.
The Enquirer will update this story.
http://news.cincinnati.com/article/20111...eakingnews