Lake City council adopts conflict-resolution agreement with Lakeshore Hospital Authority to allow Meridian behavioral facility under conditions

Lake City on Monday approved a conflict-resolution agreement intended to permit Meridian Behavioral Health to use the Lakeshore Hospital facility, while imposing conditions aimed at protecting public safety and preserving the city’s land-use authority.

City Attorney Clay Martin told the council the agreement implements the parties’ March 12 Chapter 164 conflict-resolution talks and rests in part on federal disability law: “Meridian is a mental health services provider. Mental health services providers, and their patients are covered under the Americans with Disabilities Act,” Martin said, adding the city must reasonably accommodate use protected by the ADA but may impose conditions “to mitigate against” public-safety risks.

Under the document the council approved, Meridian would be required to provide a 24/7 security team integrated with Meridian staff, install sally ports for secure patient transfers, install fencing consistent with state guidelines, use best efforts to coordinate patient discharge so individuals are not left on city streets, and notify police when a patient is reasonably believed to be a risk to self or others or is missing to the extent federal law permits. The agreement also requires Meridian to assess the facility for emergency-radio “dead zones” and collaborate with the city to install equipment so first-responder radios function inside the building.

Martin described a staged enforcement process: the parties would first attempt to resolve defaults directly, then pursue mediation, and finally could seek injunctive relief in court. He credited Chief Butler and outside counsel for shaping the conditions: “the conditions that you see in this document are, largely a product of, Chief Butler’s concerns,” Martin said.

Public comment included speakers both opposed to further city involvement in the facility decision and those supportive of repurposing the hospital. Resident Terrance Moore said he was disappointed city language mirrored prior hospital-authority positions, arguing the city had “wasted $7,500” in legal fees. By contrast, resident and nearby property owner Jeff Brown said he initially opposed the project but became supportive after researching its operation and watching the facility’s condition decline.

Council members framed the choice as either adopting the agreement — which the council said would satisfy the city’s end of Chapter 164 conflict-resolution and provide contractual remedies if the facility became a nuisance — or declining and risking a protracted lawsuit over land-use and nonconformity issues. Councilmember Joe (last name not specified in transcript) said the agreement “would satisfy our conflict resolution” and avoid a lengthy court fight.

The council moved to adopt Resolution 2025-058, directing the city manager to execute the agreement. Roll-call votes followed; the resolution passed.

The agreement now requires approval by the Lakeshore Hospital Authority board to become fully effective between the two public entities.