Putnam school board tables wellness-clinic decision after Marathon Health project hits $1.1 million estimate

The Putnam County School Board on Tuesday unanimously tabled two consent items tied to a proposed Marathon Health on-site wellness clinic after Marathon representatives said permit and site work requirements doubled early cost estimates.

The board paused action on agenda items E-6 and E-7 after Marathon officials told the board they now estimate roughly $1,100,000 is needed to complete the project — about $600,000 for interior tenant improvements and roughly a little over $500,000 to add a required parking lot and related site work.

Why it matters: trustees said the increase is large enough to merit fresh review of alternatives, because the district expects to rely on the employee health insurance fund and, in one scenario, capital funding for the site work. Board members asked staff and the insurance committee to analyze short-term leasing options that could open a clinic sooner and cost less up front.

Marathon Health representatives described how the additional costs appeared. Joe Charles, Marathon’s real estate director, said permitting revealed the municipality would require a driveway and expanded parking to meet occupancy, ADA and emergency-vehicle-turn requirements. "We found out we do need to add the parking lot," Charles said. "It came in roughly a little over 500,000 to build that, and ... roughly a little over $600,000 to outfit" the interior, "so all in, we're looking about 1,100,000.0 for this project." He added Marathon has moved forward with permitting and preliminary work and has spent roughly $50,000 on architects and engineering to date.

Insurance-committee chair Andy Burnett told the board the committee still supports a wellness clinic but acknowledged the new numbers make leasing an alternative worth exploring. "We absolutely feel a wellness clinic is something that will serve these needs," Burnett said, while urging the committee to meet again and refine recommendations.

District staff and one local broker described short-term leased alternatives. Realtor Mark Spalding (Coldwell Banker) identified several medical-office suites on Ziegler Drive, including units of about 1,819 and 1,690 square feet and one 3,000-square-foot unit that could serve as near-term space. Spalding provided pricing benchmarks: a base annual rent of $15.50 per square foot is typical in the building; one immediately available suite he described carries a base rent in the $23.50 per-square-foot range. He also listed common commercial add-ons: roughly $175 per month for the owner’s water/sewer/garbage reimbursement, a $150 per month maintenance fee to cover HVAC repair/replace and building maintenance, and a pro rata property-tax pass-through of about $2.50 per square foot per year. He said owners typically seek a three-year minimum with renewal options and an annual rent step of about 5 percent.

Marathon staff said leased sites likely would require only minor upfitting because the spaces are currently or were previously medical offices. Marathon manager Dean Ward said Marathon can move quickly once a facility and any data/electrical needs are resolved: "We have our provider hired. We have our MAs who have job offers ... We have everything ready to open except for the building." Marathon noted internet/fiber and a small number of data drops would be typical tasks that can take several weeks to arrange.

Board direction and next steps: Chair and staff asked the insurance committee to meet next Thursday and recommended staff return with a formal recommendation that compares (1) completing the Marathon build-out plus the parking lot, (2) leasing a near-term medical suite, and (3) other permutations, including capital vs. insurance-fund pay structures. The board also requested the district attorney meet with the city to clarify whether any permit relief or alternative use scenarios would reduce the need for new parking now or in the future.

Formal action: Trustee Holly Pickens moved to table items E-6 and E-7; the motion was seconded and carried unanimously.

What board members said: Several trustees voiced frustration at the schedule and the surprise cost increases. Trustee Jonathan Leary (board chair) said the board would "brainstorm" and seek lower-cost options; Trustee Buckles said $1.1 million "goes a long way" as years of rent and urged exploring leasing. Trustee Pickens noted the delay had prevented opening the clinic for the summer while many employees would be available to use it.

Background: The district and Marathon previously selected the vendor and planned to retrofit an underused district-owned building for the clinic. During the permitting process the municipal review identified site-access and parking requirements that Marathon had not anticipated. Marathon said the increase stems from additional civil work (driveway, parking, drainage, lighting and landscaping) required to meet current occupancy and emergency-access standards.

The board tabled E-6 and E-7 to allow the insurance committee and staff to return with a comparative cost and schedule analysis before the board takes a final vote.