Seton Update

Back in May of this year, the city council ratified a letter of intent or “LOI” with Seton Hospital and SCC development for the construction of a 210 bed medical facility along with a retail and professional office complex.

So what exactly is an LOI. Simply put, it is a document where all parties agree to the overall general agreement for a project. It allows the different parties to openly say – we agree to the concept of this project.

The LOI is the foundation on which a more specific agreement is formed; this is referred to as the Development Agreement “DA”. The DA details exactly, what is to be built, when it will be built, who will build it, and who will pay for it?

I’m encouraged that the overwhelming majority of Kyle citizens see Seton Hospital / SCC project as a real benefit to the city and the greater Hays County area.

Since May 2007 representatives from Seton, SCC, and the city of Kyle have been meeting regularly to get a final DA drafted that mirrors the LOI. As you can imagine, getting so many parties to agree to specific contractual language can be time consuming. My goal is to have the final DA agreed to this week, and ready to be presented to Council for approval at our next council meeting on September 18, 2007.

Our proposed FY 07 – 08 annual budget, that forecasts a reduction in the property tax rate, allows the ability to meet our financial commitments to the Seton Hospital/SCC project.

In short - If at the September 18^th meeting at least 4 of the 7 council members agree with the proposed DA and Annual Budget, the city of Kyle will have a green light for the Seton Hospital/SCC project and a FY 07 – 08 budget that allows for a reduction in the city’s property tax rate.