The Snoqualmie Valley Hospital District Board of Commissioners unanimously approved an early closing agreement with Equity Lifestyle Properties Inc. on Dec. 6 for possession of the 22-acre Leisure Time campground site, according to a press release.
Under the terms of the early closing agreement, the district will pay approximately $7.5 million for the property (down from the original purchase price of $12.5 million), which includes the interest that Equity Lifestyle Properties Inc. would have received through the original closing date of May 15, 2015.
In exchange, Equity Lifestyle Properties Inc. agreed to raise the profit sharing basis up to $10 million, according to the press release.
In 2010, the district agreed to purchase the Leisure Time campsite for $7 million plus interest.
According to the settlement, if the Snoqualmie Valley Hospital District sells the property within five years of the closing date, they agree to share any net profits above the purchase price on a 50/50 basis with Leisure Time, according to the release.
The overall settlement will result in more than $5 million in savings to the district and reduce the district’s debt by almost $7 million.
Additionally, the site comes with valuable water rights, which the city of Snoqualmie has expressed an interest in as the city continues to grow and add residents, according to the release.
“This will put the hospital district in a stronger financial position,” Rodger McCollum, CEO for Snoqualmie Valley Hospital, said in the release. “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.”
The closing was Dec. 7. The hospital district took immediate possession of the property that day and will develop a plan for its use, maintenance and restoration, according to the release.
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