Troy City Council members adjusted to the terms of a new credit agreement with the public hospital this week as they consented to the purchase of new IT infrastructure.

The bond restructuring and credit agreement passed in April by the council requires the city’s consent before the hospital can enter into any new agreements to borrow money, said Allen Jones, attorney for the Troy Hospital Health Care Authority.

“The city has to know about it and consent because you’re the backer on the line of credit for the authority,” Jones told council members during Tuesday’s work session .

The city is the guarantor for nearly $12.5 million in debt owed by the hospital, and a restructuring agreement approved in April triggered the consent process, which will become standard moving forward, Jones said.

Tuesday’s request was tied to a critical need for IT infrastructure.

“The IT equipment that runs everything at the hospital is now running on backup … if the backup fails, then the hospital has a problem,” Jones told the council members.

The council members unanimously approved the plans to lease the necessary equipment for approximately $294,300.

In other business on Tuesday, council members:

• Gave Mayor Jason Reeves authority to complete paperwork and sign agreements relating to the reopening  of the Pike County Lake. Specifically, the city must purchase $3,200 worth of trolling motors, batteries, life vests and supplies to supplement the boats being placed at the lake by the state authorities.

• Approved the modification of the bond warrants and related option agreement with Harbert Realty Services that allows for an additional $450,000 worth of dirt work at city-owned property adjacent to the Park Place development. Harbert holds the option on the property and the city would recoup all costs related to the additional site work once the option is exercised.

• Rezoned approximately 50 acres adjacent to U.S. 231 south of Franklin Drive. Parcel A, at 21.68 acres, was rezoned from residential to C4 commercial. Parcel B, at 28.4 acres, was rezoned from residential to M1 light industrial.

• Revised and approved a tax abatement request from Whaley Pecan Company. Council members previously approved a tax abatement for a $200,000 capital improvement investment at the Troy plant.

“They’re actually investing $280,000 in capital improvements,” Reeves said. “This is something we have done in the past and continue to do for our local businesses that are expanding.”