Irondale sues Trinity Medical Center over hospital move
The city of Irondale this afternoon filed suit against Trinity Medical Center over the hospital backing out of a plan to relocate to that city last year.
The suit, filed in Jefferson County Circuit Court, claims hospital officials broke a contract with Irondale to move instead into a partially built hospital on U.S. 280, in Birmingham, after Birmingham officials offered a larger incentives package.
Irondale had already issued $32.5 million in bonds to pay for land and infrastructure improvements for the hospital, and would have collected about $6.2 million a year in local taxes because of it, the suit indicates.
In the suit, which seeks unspecified punitive and compensatory damages, Irondale officials claim Trinity hospital administrators assured them they would build the new hospital in their city, even as they negotiated purchase of the Birmingham facility instead.
"Despite the secret negotiations with the Daniel Defendants, the Trinity Defendants publicly and privately reassured Irondale of their intention to build the Replacement Hospital on the Irondale Replacement Site," the lawsuit indicates.
"Daniel Defendants" is Daniel Corp., developer of the property on U.S. 280, and also a defendant in the suit.
In a prepared statement, Irondale Mayor Tommy Joe Alexander said the city invested significantly on the promise of a new hospital.
"The City of Irondale held up our side of the agreement; we purchased 154 acres of land, issued $32 million in bonds, and worked diligently to prepare for the hospital construction. Unfortunately, Trinity did not honor their commitment. Trinity has left us no option except to file suit," he said.
