Hoover council approves lease amendment for Riverwalk South Tower, 7–0
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Summary
The Hoover City Council voted unanimously to approve a first amendment to the master lease for the Riverwalk South Tower, authorizing the Health Care Authority to execute the revised lease that removes the triple-net structure and simplifies obligations.
The Hoover City Council on a 7–0 roll-call vote approved Resolution No. 873726, authorizing the Health Care Authority of the City of Hoover to execute a first amendment to the master lease for the South Tower at Riverwalk. The vote followed a presentation by Alan Paquette, chair of the River Healthcare Authority, and questions from council members about long-term costs and obligations.
Paquette told the council the authority and city staff spent several weeks reworking the lease with the developer and submitted numerous changes. "We ended with what you have before you tonight, which is a cleaned up version that I think is very much, in favor of the city, and the health care authority," he said.
Council members pressed staff on several points, including the removal of the prior triple-net structure, which Paquette confirmed is no longer in the amended lease, and how operating costs and tax incentives remain structured. Council member Smith expressed concern that portions of the document refer to the city as an obligor and asked for confirmation of whether a security deposit had been paid. Legal and finance staff said some questions were legal in nature and would require follow-up.
Council members also discussed tax incentives that remain in effect under the development agreement. Paquette clarified that the tax incentives described in the development agreement "will stick around for the life of the development agreement," while certain prepaid-rent mechanics are tied to a 93% sublease threshold.
After discussion, the council took a roll-call vote: Driver, Schulz, Smith, Lovell, Murphy, McClinton and President Middlebrooks voted "Aye". The clerk announced, "With 7 ayes and 0 nays, it passes." The amendment was adopted and the Health Care Authority is authorized to execute the documents described in the resolution.
The council’s action amends the master lease; the underlying development agreement and long-term incentives remain part of the broader contractual framework and were described in the meeting as not being altered by this single amendment. Further legal and financial clarifications requested by council members were left to staff to resolve after the meeting.
The council did not specify dollar amounts tied to operating costs, insurance, or potential shortfalls during the discussion; Paquette estimated that, in the market, those costs "would run 10 to 12 dollars a square foot annually" but said exact figures were not specified in the amendment.
