Old Hospital Property Back on Sale Block; Commissioners Approve Gray Bond

February 6, 2020 - The Shelby County Commissioners learned during their February 5, 2020 meeting the purchase of the old hospital location was no longer moving forward.

Allison Harbison, Shelby County Judge, reminded the commissioners the winning bid was previously by Kevin Jones for $152,500. Through his lawyers at Mettauer Law Firm his bid has been withdrawn.

"Through his attorney, Matthew Mettauer, he is withdrawing his offer to purchase the old Shelby General Hospital location," said Judge Harbison. "I have been in contact with the City of Center Economic Development and they would like to talk to us about that property."

Roscoe McSwain, Commissioner Precinct 1, asked Shelby County Attorney Gary Rholes about possible options relating to the sale of the property.

"I want to know if we're handicapped in any way after we've accepted this bid and he withdrew, his bid was $152,500. Are we under any, any legal obligation to take the next bid in line, or can we take an offer of $152,500 from somewhere else."

Rholes responded they would not be obligated to take the next bid in line, meaning they could accept an offer from another interested party.

Center Economic Development Corporation (EDC), during the July 17, 2019 Meeting, initially expressed a desire to acquire the property via a letter presented during commissioners' court. At that time the commissioners discussed retaining some of the property. A church had also expressed desire to obtain the property. Preliminary cleanup and demolition costs were projected to be around $200,000.

A 45-day window was given by the EDC to the county for consideration of their offer, with the possibility of an additional 15 days should an extension be necessary. Discussion during that meeting over the demolition and cleanup at that time brought the total to $380,000 with $230,000 of that being toward the project cleanup and $150,000 going toward the purchase. If potential bidders didn't hit the $150,000, Rholes said the county could still go with the city's offer.

The commissioners opened bids on December 4, 2019 and Kevin Jones submitted his bid for 6.73 acres in the amount of $152,500. Submitted by the EDC was their original letter from July 1, 2019 proposing to purchase the building and entire acreage for $150,000.

By the offer, the EDC also accepted all responsibility for asbestos abatement and demolition of all buildings on site. Although the original offer was expired at that time, they met again and extended their original offer through December 31, 2019 while also authorizing it to be their bid to the county.

During the December 4 meeting, a motion carried by the commissioners to accept the bid from Kevin Jones for the purchase of the hospital property, as-is.

Charles Barr, Commissioner Precinct 3, brought to the court a proposal to provide driveway repairs to an individual with special needs on CR 3492.

"Ms. Farmer, the Assistant Principle as well as the special needs teacher contacted me. The bus has to pull in and pick that child up at the house and they asked me if I could do some repairs so that the bus could get in and get out," said Barr.

Rholes asked what repairs Barr would be providing and McSwain asked if it's in the county road ditch, to which Barr confirmed that to be the location where he would install one culvert for entry and another for departure.

A motion carried to install the culverts.

Bryan Gray was recently appointed Constable Precinct 4 and a motion carried to approve his bond.

The commissioners discussed needed repairs for the Juvenile probation building to meet Americans with Disabilities Act (ADA) specifications. A contractor was recently asked to review the needs of the structure. Barr indicated there is a leak in the roof of the building.

"There is no wheelchair access. There's no access from the parking lot except to step up on a foot and a half to two foot wall to step up, unless you want to walk out into the street and go around," said Barr. "Besides being under code on the ADA, I think it's a safety issue."

Barr provided an estimate of $9,430 from the contractor to make the building ADA compliant and another estimate of $4,315 to repair the leaking roof.

A motion carried to repair the roof out of courthouse repairs and ADA to be taken out of the contingency fund.

Abe Benavides with McCall, Parkers and Horton law firm explained to the commissioners the firm he represents is bond council for New Hope Cultural Education Facilities Finance Corporation. According to Benavides, they are acquiring facilities in Texas and Oklahoma and those in the Shelby County area provide services for senior living, assisted living and skilled nursing.

"Internal Revenue Code requires that New Hope receive the approval or acknowledgement of a governmental entity with jurisdiction of each facility in the project," said Benavides.

Benavides stated there are 28 facilities in the project and counties he named included Bowie, Collin, Dallas, Lubbock, Panola, San Augustine, Smith, Shelby and others in Oklahoma. The one facility in Shelby County is Pine Grove Nursing Center.

Benavides further explained there would be no obligation on the county relating to the facility, and the approval only allows New Hope Cultural Education Facilities Finance Corporation the ability to receive the tax exempt bonds on the facility.

A motion carried to approve the resolution.

Agenda items approved during the meeting included:
1. Pay weekly expenses.
2. Current payroll.
3. Driveway repairs for Special needs person on CR 3492.
4. Bryan Gray Constable 4 Bond.
5. Repairs to the Juvenile Probation Office in order for it to meet ADA specifications and roof repair.
6. Resolution approving financing by New Hope Cultural Education Facilities Finance Corporation of Health Facilities located within Shelby County.
7. Adjourn.