A Press Release from the City of Tulare
Both the City of Tulare and the Tulare Local Hospital District are pleased to announce that, as of June 18, 2020, the line of credit provided to help the district rebuild has been paid in full, with interest.
In December, 2018, the Tulare Local Health Care District approached the City with a request for a line of credit to help “bridge” the gap as the hospital re-opened to serve our community. In February, 2019, the City agreed to provide a line of credit of up to $9,000,000 for a period of five years. In reaching their decision to provide the line of credit, the City noted the extreme importance of having an operating hospital for the community, as well as the positive effect the hospital has on the local economy as a jobs multiplier. In return for the line of credit, the District provided the City with a number of assets as collateral against the line of credit, including the Evolutions building.
Both the City of Tulare and the Tulare Local Hospital District are pleased to announce that, as of June 18, 2020, the line of credit has been paid in full, with interest. During the course of the credit usage, the District complied fully with all the terms and conditions of the agreement, including the provision of monthly financial statements to the City for full disclosure purposes as well as the payment of $63,980.65 in administrative fees and $562,065.92 in interest. According to Tulare Local Health Care District Board Chairman Kevin Northcraft, “The expected continued success of the Tulare Hospital, a major fixture in the quality of life of Tulareans, is due substantially to the great support of the City of Tulare during this time. The District is very grateful for and blessed by the City’s outstanding leadership.”
Tulare City Mayor Jose Sigala stated that, “I am glad to announce that the Tulare Hospital District has paid their outstanding obligation to the City for the funds they borrowed to save our City’s hospital. I am proud to have worked with our City Council and staff to play a role in assuring our community has a hospital. This is an example of how we can work together to improve the quality of life for our residents.”
The City is proud to have facilitated the successful re-opening of Tulare’s only hospital and looks forward to many years of continued relations.