MINUTES
TOWN OF SUNNYVALE
SPECIAL CALLED MEETING FOR
SUNNYVALE TOWN COUNCIL
SUNNYVALE 4A DEVELOPMENT CORPORATION
OCTOBER 11, 2007
6:00 P.M.
THE TOWN COUNCIL AND SUNNYVALE 4A DEVELOPMENT CORPORATION OF THE TOWN OF SUNNYVALE, TEXAS MET IN SPECIAL SESSION ON OCTOBER 11, 2007 AT 6:00 P.M. IN THE COUNCIL CHAMBERS OF THE SUNNYVALE TOWN HALL, 127 COLLINS ROAD, SUNNYVALE, TEXAS, UNDER V.T.C.A., GOVERNMENT CODE SECTION 551.041. THOSE PRESENT WERE:
MAYOR JIM PHAUP
MAYOR PRO-TEM DAVID BYRD
ABSENT COUNCILMEMBER KATHY KANE
COUNCILMEMBER MIKE SAGE
COUNCILMEMBER KAREN HILL
COUNCILMEMBER PAULA YATES
PRESIDENT BILL WHITEHURST
MEMBER JIM WADE
MEMBER LAWRENCE BOYD
MEMBER DANNY ALLEN
Mayor Phaup called to order the Town Council at 6:20 p.m. President Whitehurst called the Sunnyvale 4A Development Corporation to order at 6:20 p.m.
Mayor Phaup stated that the meeting was being held to update those present on the hospital project from Cottonwood Partners. He introduced Mike Loaner, President of Cottonwood Partners Capital Funding.
Mike Loaner introduced Mark Kennedy, Chief Executive Officer of Rockwall Hospital Corp., and Rod Booze, Principal of Ascention Group Architects.
Mr. Loaner gave an overview of Cottonwood Partners management structure. He said the medical business was a fairly new business for the group in partner with Rockwall.
Rod Booze described the planned hospital facility. He stated that as of this date the proposed building was 110,000 sq ft under roof with a planned expansion up to 220,000 sq ft if needed. He said this was a cutting-edge deal and there would not be a better quality facility in the Dallas/Ft. Worth metroplex. Mr. Booze gave a detailed description of each building and the available equipment at the hospital. He explained the fast-track planned for the construction.
Mike Loaner advised that the hospital building would be owned by Cottonwood Partners and leased to the Rockwall Hospital Ventures which has 70% physician owners.
Mark Kennedy discussed the difficulties of building a hospital facility. He described both successful projects and unsuccessful projects he had been involved in. He said they were committed to work solely with doctors. Mike Loaner advised that Rockwall Hospital Ventures had over 100 years of hospital experience. They spoke about the balance between investors and physicians.
Member Wade asked if this was a specialty hospital where patients would not stay for any length of time. Mark Kennedy answered that it was not a specialty hospital or a surgical hospital, but a general acute care hospital. He said this design was the future of hospitals.
President Whitehurst stated that the governing board that governs the physicians was made up of physicians. He asked how they got agreement in such a diverse group. Mark Kennedy stated that in their concept they had created a "Committee of Partners" that was comprised of 9 individuals, 6 of which were physicians and 3 from Rockwall management. He said that way the physicians were in control.
Mayor Phaup asked why the hospital was physician owned and not privately owned. Mark Kennedy said that not-for-profit medicine vs. profit medicine had very little difference in today's market. He said that physicians had become disenchanted with not-for-profit facilities. He said that physicians wanted to have a greater control over their patient's healthcare.
Councilmember Yates asked who would be upgrading the hospital's technology in 2009 and how could Sunnyvale be assured that this hospital would remain on the cutting edge. Mark Kennedy advised that Rockwall had made an agreement with the equipment suppliers to install the most current equipment. He said that after that time, he relied on the 70% physician ownership to deliver that level of care.
Member Allen asked how much money they wanted from the town to build the hospital. Mike Loaner said that the funding was very important and had a huge bearing on the outcome of the project. He advised that the funding had been factored into their financial profile and would put them at risk of not being able to fulfill their commitments.
Member Allen asked how the areas of expansion would be financially funded. He asked if it would be from cash flow or a secondary offering. Mike Loaner said that the answer was all of the above. He said it depended on how quickly cash flow could be realized.
Member Allen asked if the Town was unable to make financial concessions in the amounts of money that Cottonwood required, would they still remain committed to expansion. Mark Kennedy said that while they were committed to the project, economic decisions could possibly be made to move down and choose another location. Mike Loaner said their goal was to build the hospital in Sunnyvale and unfortunately, they needed financial help from Sunnyvale.
Walt McCool, 4A Attorney, asked what incentives Cottonwood received from Pasadena on their other hospital project. Mr. Loaner said they did not receive any incentives, but their costs were much lower.
2. ROB PARADES (out of order)
Rob Parades said that he owns the 18 acres on the southeast corner of Collins and Hwy 80. He concluded that the hospital was a big driver for their project. He said the project alone would set off the intersection.
1. RICK SHELDON
Rick Sheldon said he had known the Cottonwood folks for about 20 years. He said he had recommended Mike Anderson to broker land for their project on I-30 which ended up coming to Sunnyvale. He explained the master plan for the hospital and shopping center. He said he sincerely felt that this was the best project for Sunnyvale's tax base.
3. PURSUANT TO SECTION 551.087 OF THE TEXAS GOVERNMENT CODE TO DISCUSS AND DELIBERATE COMMERCIAL OR FINANCIAL INFORMATION FROM A POTENTIAL BUSINESS PROSPECT THAT THE BOARD IS SEEKING TO LOCATE OR EXPAND IN THE TOWN; TO DELIBERATE THE OFFER OF FINANCIAL OR OTHER INCENTIVE TO A BUSINESS PROSPECT
4. PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE TO CONSULT WITH THE ATTORNEY FOR THE SUNNYVALE 4A DEVELOPMENT CORPORATION ON MATTERS FOR WHICH THE ATTORNEY'S DUTIES CONFLICT WITH THE TEXAS OPEN MEETINGS ACT.
President Whitehurst adjourned the Sunnyvale 4A Development Corporation into executive session at 8:02 p.m.
Motion was made by Councilmember Byrd to adjourn into executive session. Motion seconded by Councilmember Hill. Motion carried 4/0.
Mayor Phaup adjourned into executive session at 8:02 p.m.
Mayor Phaup reconvened into regular session at 8:30 p.m.
No action taken as a result of executive session.
ˇ ADJOURN
President Whitehurst adjourned the Sunnyvale 4A Development Corporation at 8:30 p.m.
Mayor Phaup adjourned the Sunnyvale Town Council at 8:30 p.m.
The undersigned presiding officer certifies that this is a true and correct record of the proceedings.
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Mayor Jim Phaup
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President Bill Whitehurst
ATTEST:
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Kathryn Dewey, Town Secretary
A TAPE RECORDING OF THIS MEETING IS ON FILE AT TOWN HALL. THESE MINUTES ARE CONDENSED THEREFROM.