North Country HealthCare Bid On City Property Is Accepted

By Linda Kor
   A bid presented by North Country HealthCare was accepted for 4.9 acres of property located between the Court Land and Coronado Apartments off of Navajo Blvd. for the construction of a 9,000-square foot medical facility.
   The only bid for the property was made by North County, with the offer of $97,850 including $35,000 for the back two acres and $62,850 for the middle 1.03 acres of land, less the amount for the easement.
   The $35,000 for the 2.7 acres will be paid in cash, with the remaining balance to be financed for five years at a rate of four percent, with the appraisal and survey costs to be included in the financed amount.
   The council also approved the developmental agreement for the facility and authorized the first reading of the purchase agreement for the property.
   Prior to approval of the developmental agreement the council eliminated clause 2.1, which stated, “the developer understands and agrees that the city will have a right of first purchase on the property if the property is not developed and buildings are not constructed on the property and employees are not hired pursuant to this separate agreement.”
   According to Councilman Wade Carlisle, the clause was not enforceable within the developmental agreement.
   “I would like to have reversionary clause placed into the purchase agreement, not in the developmental agreement. It’s not valid in the developmental agreement because we’ve tried that in the past and it doesn’t work,” stated Carlisle, referring to a past medical development agreement with a similar clause made with Ronaele LLC in 2005, in which the funding for a medical facility fell through.
   “They were unable to do what they’d hoped, and now they have the property and we don’t. I fully expect North Country to build, but if they can’t get their grant, then they can’t get the property,” added Carlisle.
   City Manager Ray Alley had addressed the issue with North Country officials and they were not in agreement. “Since they’re paying the full value of the appraisal, they don’t think that should be there. They feel that if they were getting it at half-price or something like that, that would be different. They would like that clause out of there,” explained Alley.
   “We’re selling this land for a purpose, not to make money,” explained Carlisle, who added that this was a cautionary measure, and that he fully expects North Country to be able to construct the facility.
   “Are we saying they would have to give the property back to us or that we would purchase it back?” asked Vice Mayor Matt Searles.
   “We could provide the principal amount back. They will be making interest payments and we could keep that interest,” suggested Alley when concerns regarding the loss of additional administrative costs were brought up by Mayor Jeff Hill.
   Hill reiterated that despite the topic of discussion, the council fully expected North Country to build and complete the facility. “They have our 100 percent support, but we do need to protect the assets of the city,” he said.
   Marti Neff, office manager for the Holbrook North Country Healthcare clinic, spoke on behalf of the organization, stating that they were completely on board with the project and are very serious about completing the facility.
   “I do want to mention that we were working with a private individual who wanted a reverter clause and we pulled away from the arrangement, as a result he withdrew a donation. We do answer to a board and a CEO on these matters,” stated Neff.
   “When it’s private versus private I don’t have concerns with their decisions, but we’re the stewards of public property and we need a final product,” stated the mayor.
   The final decision of the council was to ask Alley to add the reverter clause to the purchase agreement, stating that if development of the facility has not proceeded to the point where the facility is weathered in by the end of three years, the city may buy back the property at the original purchase price, less any interest accrued on payments to account for administrative costs incurred during that time.
   According to Neff, the $2.4 million project is scheduled for completion by December 2012.
   The purchase agreement is on the agenda for discussion and possible approval by the city council during a special session on Tuesday, March 16.
   In other matters, Alley mentioned that cardboard is getting a good premium and encouraged all residents to utilize the recycle bins located at the transfer site.
   Holbrook resident and business owner Leo Maestas addressed the council during the call to the audience. He requested all written correspondence relating to water wells, property contracts and other related business. He expressed concerns that the city was entering agreements on a whim with no real plan. The mayor advised him to contact the city clerk, who would provide him with the requested documents.
   * Approved closure of the city transfer site on Fridays due to personnel cutbacks.
   * Approved a waiver of building permit fees for Holbrook Emergency Medical Services for additions to its new facility.