Despite Wednesday’s 7-2 vote of the city council to back a resolution to save Good Samaritan Hospital, the debate over the future of Good Sam isn’t over.

The city voted to pass a resolution allowing Mayor James Perkins, Jr. to continue pursuing a loan agreement with the Alabama Department of Economic and Community

Affairs for $400,000 to purchase the property.

The hospital is currently owned by The Lighthouse of Dallas County Inc., which entered into bankruptcy proceedings earlier this year.

Drs. Charles L. Lett and Samuel Lett operate the Lighthouse. Both operate offices at Good Samaritan.

If the city doesn’t purchase the property, then Perkins said the facility would be closed.

While the resolution allows the city to continue pursuing the loan, the Council would still have to approve a $50,000 payment in January. If the payment isn’t approved, then the property would still be closed.

The property currently houses a doctors office, Interlink Drugs and a testing lab, along with the offices of both Letts.

In addition, the hospital houses a drug store and a lab testing facility. The lab testing facility has announced plans to move its business to another location.

Councilman Reid Cain and Councilman Cecil Williamson both opposed the resolution, saying it wasn’t feasible under the city’s current financial state.

During the discussion of the issue, Cain said the city wouldn’t be able to pay the $400,000 loan required to keep the facility open without spending money it didn’t have.

According to the resolution, the money collected from leases held on the property would cover the loan payments.

The resolution states the building will generate $93,000 per year or $7,750 per month. The loan payments would total $3,543.48 per month.

Cain disagreed with the ability for the property to generate the necessary revenue at Wednesday’s meeting. He presented information to the council that said the building would only generate $3,350 per month.

Cain’s reasoning was based on the fact that the lab, which pays rent of $2,900 per month, was moving out and that both Letts weren’t paying their debt obligation on the facility to begin with.

“We cannot count their combined $3,400 per month,” Cain said. “(If) they’re not going to pay the bankruptcy court we can’t expect them to pay us.”

Cain alleged the city would lose $23,000 per year on the arrangement and that the city couldn’t afford to do it.

Cain also said the hospital also has combined expenses of $3,700 per month.

“The city will end up subsidizing the hospital at a loss of (about) $65,000 per year,” he said.

Perkins countered Reid’s statement with letters of intent to pay signed by all the tenants but the lab. The Council received copies of all the letters, including from the Letts.

He said the lab’s leaving was omitted from the original resolution by mistake and that there was no “conspiracy” surrounding the subject.

“This is not some conniving and scheming thing guys,” he said. “Quite frankly I did forget to go back and adjust that number.”

Perkins also said the issue was already a priority for the council, citing a resolution passed by the Council in 1994. Perkins said the resolution made the city responsible.

“The fact (is), the city is on the hook for $2.2 million,” Perkins said.

Perkins was referring to a 108 HUD loan Lighthouse took from ADECA, to purchase and renovate the building.

The original loan couldn’t be approved by ADECA without the city’s 1994 resolution.

Cain disagreed. He said the city wasn’t responsible for the loan, or the current bankruptcy procedures.

“From my talking to state officials the city of Selma is not a part of this,” he said.

Cain went on to say that he felt like the issue wasn’t fully disclosed to the council.

“This resolution was presented to the council as a good thing for our city,” Cain said. “No other information was given to the council supporting the merits of the resolution.”

Specifically, Cain wanted an appraisal of the property proving its worth. According to the resolution, it has been appraised in the bankruptcy proceedings as having a value of $400,000.

Perkins pointed out that the county has tax assessed the property at $800,000. While the resolution states the property is tax appraised at $182,000, pointed out by Williamson, Perkins said the figure was simply a mistake.

Cain also felt like the lab’s exit from the property should have also been presented.

“Just a request for information is all I’m asking,” Cain said.

Council President George Evans agreed.

“I think we all want to know (the answers to) these types of questions,” he said. “I’m trying to be sure that I understand this.”

Perkins said it wasn’t an attempt to cover up anything, simply a desire to expedite the proceedings.

He also explained his motivation in saving the facility to the Council.

Good Sam has been a part of a plan to bring better healthcare to the Black Belt for some time. Originally, Lighthouse was founded to help deal with some of the racial disparities among blacks and whites throughout the region. The mayor cited the toll diseases like diabetes and high blood pressure has taken on the community.

“If you really look at it, I agree with you, this is an issue of accountability and risk management and financial management. But it also has something to do with the human factor,” he said. “I have no personal or professional desire for the city to get into the real estate business. I’m trying to save this project.”

Councilwoman Bennie Ruth Crenshaw agreed. She said she’d been involved in a project to improve medical treatment for disadvantaged residents since she sponsored a health fair at Calhoun Foods. During the fair, Crenshaw said that 200 of those who attended had no health insurance.

“We do have problem here with health,” she said. “Right now I just want to deal with this.”

Councilwoman Dr. Geraldine Allen said that as a health professional she appreciated the city’s need to deal with public health issues but she still had some problems with taking on more debt.

“I have a conflict (from) some of my constituents who are concerned about the financial situation of our city,” she said.

Perkins explained to the council that he shared their concerns about the financial health of the city.

“I’m trying to dig this city out the ditch, I’m not going to break the city,” he said.

He further explained that the ultimate plan was to bring new and more viable tenants into the facility to expand on the health services offered and to pay the loan agreement.

He said he’d already spoken to Dr. Ray White, of Pro Health in Tennessee. He said White had spoken to Perkins about operating a clinic out of Good Sam.

“They operate a clinic of this nature in Tennessee,” he said.

Perkins hinted that there might be grant money available in the project’s future as well and that several federal government officials had expressed their support.

“Congressman Artur Davis has already put a letter on file supporting this project,” he said.

Congressman John Lewis of Georgia has also filed a letter of support, Perkins said.

Cain countered. He said if a company wanted to come into the city then they wouldn’t need the city’s help in buying or improving Good Sam.

“If this is a legitimate and positive group they will be able to handle this transaction,” he said.

Perkins said that the resolution was about showing a good faith effort on the part of the city.

Allen said neither issue was as important as making sure the city was and appeared to be responsible for its debt issues.

” I believe in good faith this city made an agreement (in 1994),” she said. “And agreements have to be kept.”

Allen was among the three Council members who approved the resolution conditionally.

Evans set the tone for the conditions of a yes vote for the three members.

He said that as long as the city still had the authority to approve or disapprove the $50,000 payment, that the questions raised were answered and that the mistaken numbers pointed out by Williamson be corrected.

Allen and Councilwoman Jean Martin both agreed and made their votes conditional as well.

Wednesday’s called meeting was the second attempt made to get the resolution passed.

At last Monday’s Council meeting the mayor attempted to get the resolution passed, but it was held over due to a procedural rule.

Council rules mandate that any resolution requiring the expenditure of city funds must be passed unanimously at the meeting it is brought up or it is automatically carried over to the next meeting.

Councilman Reid Cain voted against the resolution, preventing its passage Monday. Cain said he had questions regarding the resolution, specifically related to the building’s condition and the wisdom of the city to entering into debt during the current budget crisis.

The council agreed to call the special meeting to discuss and vote on the resolution. Perkins said the called meeting was necessary to get the issue passed before the end of the week, as bankruptcy proceedings threatened to close the facility at the beginning of December.