Hoover residents pay millions of developers’ costs for new healthcare facility; councilor unsure if they will be reimbursed

Earlier this week, the Alabama Certificate of Need Board unanimously approved the city of Hoover’s application to build an outpatient surgical center. The surgical center is set to be the cornerstone of the Riverwalk Village project.

The CON’s approval comes after months of waiting following hearings over objections to how the city fast-tracked the project, its implications on previously planned projects, and a process that even the CON board members acknowledged as unusual. 

Testimony during those hearings focused on whether the project was primarily a healthcare project or an economic development project pushed through as a priority of City Council President John Lyda.

The first day of testimony included unsubstantiated accusations of wrongdoing made by Brocato against a beloved community member who has since passed away. It also revealed a secret forensic audit that was subsequently made public and highlighted failures by city officials and leadership. 

While Brocato is taking a victory lap telling The Hoover Sun, “To me, it’s one of the biggest events that’s happened in the last 25 years in the city of Hoover.”

Expanding to say, “It’s been a long road. I’m so proud that our council stayed the course, our citizens stayed the course. It was a long hard-fought battle, but in the end, we are where we wanted to be, and now we’re going to bring incredible health care to the Hoover area, and who knows what the next step is.”

The biggest question is how Brocato and council leadership will ensure that the cost of the CON is not borne by residents, as stated in the PUD agreement voted on by the council. 

City council just passed another budget amendment approving an additional $381,251 to cover the costs of legal fees and bringing the total to over a million dollars.

Hoover resident Robin Schultz has repeatedly asked the city and city staff beginning in June why the costs were being born of the residents. He confirmed with Alabama Today that to date he has had no response from the city leadership or the city’s attorney. 

In late July, Alabama Today pointed out the discrepancy between the oversized spending which required multiple budget amendments and the language that the city council passed. 

Earlier this week, The Hoover Sun reported a shocking statement by Councilor Curt Posey who discussed the city paying for the developers costs, “It’ll have to be reviewed, and then there will have to be conversations about reimbursement on the back end,” Posey said. “But I am not confident it will happen.”

As previously reported by Alabama Today, the amendment to the Riverchase Planned Unit Development (PUD) approved by the City Council and signed by Healthcare Resources Manager Robert Simon and Signature Homes President Jonathan Belcher, stated (emphasis added in image below): “The Developer will seek a Certificate of Need from the Alabama State Health Planning and Development Agency for development and operation of a ‘non-traditional hospital’ or ’boutique hospital,’ with outpatient surgery and other forms of ambulatory care.”