Snoqualmie Valley Hospital's board voted Thursday, Dec. 6, for an early closing agreement with Equity Lifestyle Properties, Inc., for the former Leisure Time campground site on Snoqualmie Ridge.
Effective today (Friday, Dec. 7), the agreement lets the district to pay $7.5 million for the 22-acre property more than two years ahead of the original closing date of May 2015. In exchange, Equity Lifestyle Properties, Inc. raised the profit sharing basis for the site to $10 million.
The former Leisure Time campground was the subject of a 2008 $12 million purchase and sale agreement by the hospital district for construction of a new campus. That plan fell through, the parties went into litigation, and both sides agreed to a $6.7 million settlement in 2010.
According to the earlier settlement between the hospital and property owner, if the district sells the property within five years of the closing date, they share any net profits above the purchase price on a 50/50 basis with Leisure Time.
With the new deal, the hospital district expects to save more than $5 million and reduce debt by almost $7 million. Additionally, the site comes with valuable water rights, which the city of Snoqualmie has expressed an interest in as it grows.
“This will put the hospital district in a stronger financial position,” said Rodger McCollum, the hospital's CEO. “It will also put us in a position to maintain the site and offer the potential for various community activities. The bottom line is that the early settlement and possession allows us to put to use what will be a valuable asset to the District and the community.”
As of today, the Hospital District will take immediate possession of the property and develop a plan for its use, maintenance and restoration.