Pell City to pay $2M to acquire old hospital property
Published 2:15 pm Friday, October 29, 2021
- The old hospital was demolished in 2019. The city is hoping to move forward with building retail development on the property.
At the regular meeting on Monday night the Pell City council voted to partner with the county to pay $2 million dollars to be relieved of what was a yearly $100,000 debt.
Once the deal is complete, Pell City will be the sole owner of the property.
“We retired a debt that has existed for a decade with a very substantial carry rate,” said Brian Muenger, city manager. “With the county’s approval, we will move toward a closing on that property where the city will be the sole owner of it. That is a precursor to what will be a forthcoming commercial development on the property.”
10 years ago the city and county acquired a general obligation warrant of $4 million dollars after entering into a deal to develop St. Vincent St. Clair.
According to Muenger, the old hospital had simply outgrown its community. It was demolished in 2019 in a partnership between the city and county.
“With it reaching the end of its lifetime the city and the county were faced with a facility that the community had outgrown decades before,” said Muenger.
The property has been unused for 10 years. The overall takeaway for this deal is that the city can move forward with a planned retail development project.
“We have been working for the duration of my tenure, and longer, to find ways to redevelop that property. The county has been a partner with us throughout,” said Muenger.