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Politics & Government

Mayor Calls for Special Meeting about HUMC Sale

The Council-approved parking access agreement lacking immediate enforcement will be main topic.

After needed to ensure the sale of the Hoboken University Medical Center Tuesday night, Mayor Dawn Zimmer has called a special meeting for Sunday, Oct. 30 at 6 p.m. in Council Chambers.

The City received a letter from the buyer HUMC Holdco’s attorney, Louis A. Modugno, stating that because the parking access agreement lacked immediate enforcement, the buyer would not be able to close on the expected date, Wednesday, Oct. 26.

The letter, dated Oct. 26, states:

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We understand the Hoboken City Council met last night and failed to provide the requisite Approvals of the Parking Agreement as those terms are defined in Asset Purchase Agreement, as amended, between Purchaser and the Hoboken Municipal Hospital Authority (“Authority APA”).

Pursuant to paragraph 10.1(q) of the Authority APA, the Authority is required, among other things, to provide Approval of the Parking Agreement as a condition of closing. Pursuant to paragraph 10.1(e) of the Asset Purchase Agreement between Purchaser and Hudson Healthcare, Inc. (“HHI APA”), all of the conditions precedent in the Authority APA must be satisfied before a closing pursuant to the HHI APA can be consummated.

The Authority has failed to provide the requisite Approval of the Parking Agreement prior to the closings originally scheduled for today, Oct. 26, 2011. Accordingly, the Authority and HHI are hereby advised that, as a result of the failure of the Sellers to satisfy the conditions precedent to closing, the Purchasers are not in a position to close today and expressly reserve all of their rights and remedies.

Very truly yours,
Louis A. Modugno

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