Pella Chronicle

CNHI/Southeast Iowa

November 6, 2012

Knoxville backs hospital debt

KNOXVILLE — At Monday's regular Knoxville City Council meeting, the council approved a resolution that authorized the issuance of up to $3.5 million in bonds for the Knoxville Hospital and Clinic. 

The action is using the City's status to achieve a better interest rate for the hospital, while not putting taxpayers further in debt. Cities are allowed to issue bonds such as this for amounts up to $10 million in each calendar year. Once bonds are issued, all of the business and transactions take place between the bank and the ultimate borrower, which in this case would be the hospital. 

The council also agreed to sell real interest in properties at 414 South Iowa, 901 West Main and 206 West Washington. The properties will be sold for $7,900, $12,000 and $429 from two separate buyers for the Washington property. Buyers will also pay costs of the transaction and "other good and valuable consideration." The buyers of the property in Washington intend to demolish the existing building and asked the council for six more months to have it torn down. This was granted.

"I'm glad this is over," Mayor Don Zoutte said.

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