Community Corner

Eden Township Healthcare District CEO Writes on Board Considering Liquidating Assets

Dev Mahadevan recently wrote to the Oakland Tribune about the tough financial choices the district must face.

Dev Mahadevan, CEO of Eden Township Healthcare District, recently wrote to the Oakland Tribune about various officials asking the district to give up to $20 million in financial support for the San Leandro Hospital between 2014 and 2015.

His article goes on to clarify the district's "assets and the restrictions that are on them."

The district owns three real property assets — medical buildings in San Leandro, Castro Valley and Dubling — and around $11.5 million in the bank  with $8 million held in reserve as of April 30, Mahadevan writes. The properties were appraised at around $56 million total in November 2012 and used to secure a loan of $45 million, according to Mahadevan.

He goes on to say that the district's unencumbered assets as of April 30 are worth around $12.5 million, "if everything could be liquidated."

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"If the loan were to be paid off in a sale, the district would have net cash remaining at the end of such liquidation of $20.5 million," Mahadevan writes.

The district has put aside $8.6 million to providing grants as well as supporting services for its residents since 1998 and has funded more than 60 nonprofit agencies serving thousands of patients, according to Mahadevan.

Find out what's happening in San Leandrowith free, real-time updates from Patch.

Now, board members are considering if one-third of the district residents should liquidate the assets of the district.

"There is considerable doubt that any liquidation of property can be done without a vote of the residents of the district, which includes Hayward, Castro Valley and San Leandro (along with Ashland and Cherryland)," Mahadevan writes. "What the voters will think of such an investment is not for me to speculate on."

Mahadevan goes on to say that the future of the district looks promising with the buildings rented and revenues increasing.

To continue on this path, Mahadevan said the board needs to have a solid grasp on the district's assets.


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