CITY AND YALE NEW HAVEN HOSPITAL ENTER INTO ARBITRATION
(8/3/2007) NEW HAVEN- Representatives from the City of New Haven and Yale New Haven Hospital met today in an effort to come to an agreement on matters related to the hospital’s expansion project. Several weeks ago the City served the Hospital with a notice of dispute based on the hospital’s failure to comply with areas of the development agreement that involved the development of a site on Park Street and a wrapped garage on Lot E. All projects were to be underway simultaneously. However, only the hospital expansion has begun construction thus far.
Over the past few weeks multiple party talks at levels of administration have taken place between the City and the hospital. While the hospital presented a number of acceptable offers that they City was prepared to accept, the hospital would not agree to any consequences should they default on their agreement.
“Based on prior experience working with Yale New Haven Hospital we were concerned that if we didn’t put this agreement in writing with enforceable consequences to keep them from walking away from their offers, we might not ever see these projects get off the ground,” said Kelly Murphy, Economic Development Administrator.
With the hospital not agreeing to set milestones for work on the Lot E and Park Street projects, they opted to move into arbitration. The City offered an extension in an effort to continue talks that could lead to a resolution. The hospital did not agree to extending negotiations preferring to move directly into arbitration.
“The City is willing to continue extensive discussions like we’ve been involved in these past few weeks,” said Murphy. “We wanted to continue talking. Despite the fact that this has gone into formal arbitration, since the hospital wouldn’t extend the deadline, we hope we are able to continue to talk to resolve our differences.”
“From the City’s perspective, it is imperative that our agreement with the Hospital contain adequate enforcement mechanisms in the event the Hospital fails to deliver on Lot E,” said Joseph Williams, Attorney for the City. “Given all that has transpired, we can no longer accept mere assurances. To date, the Hospital has been unwilling to agree to adequate protections for the City.”
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