Lake City and Lakeshore Hospital Authority begin Chapter 164 conflict talks over hospital property, downtown safety concerns raised

City of Lake City and Lakeshore Hospital Authority representatives met under Florida’s Chapter 164 process on Jan. 13 to assess a dispute over whether the former hospital property retains legal nonconforming status and to consider terms tied to a proposed transfer to Meridian.

The meeting, required under Chapter 164, Florida Statutes, opened with officials from the city and the authority describing competing concerns: the city cited public‑safety, fiscal and downtown‑compatibility risks tied to Meridian’s proposed mental‑health services for the main hospital building; the authority and Meridian emphasized security plans, continuity of health services and economic benefits.

Terrell Arline, special land‑use counsel to the Lakeshore Hospital Authority, summarized the procedural history: City Manager Don Rosenthal sent a letter dated Oct. 24, 2024, asserting the hospital had lost its legal nonconforming ("grandfathered") zoning status; the authority responded with legal analysis, and on Jan. 13 the authority adopted a formal resolution to initiate conflict resolution under Chapter 164. Arline said the process requires representatives to "discuss the issues pertaining to the conflict and an assessment of the conflict from the perspective of each governmental entity." (Arline)

Dale Williams, executive director of the Lakeshore Hospital Authority, told the panel the authority has maintained the property and pursued a buyer. He said the authority has been spending roughly $50,000 a month to maintain security and…