Shelby County approves $23.9 million in land purchases for Regional One’s proposed new hospital; some commissioners press for more vetting

Shelby County commissioners voted 11–1 to approve contracts to buy two parcels tied to a planned Regional One Health hospital campus: parcel 1 (listed at $16,900,000 plus closing costs, appropriation not to exceed $17,100,000) and parcel 2 (listed at $7,000,000 plus closing costs, appropriation not to exceed $7,150,000). Vice Chair Shontay Avant and several other commissioners were added as co‑sponsors before the vote.

Regional One officials told the commission the Commercial Appeal site and adjacent properties would allow the hospital rebuild to proceed on a new site, shortening a previously projected multiyear phased construction schedule and reducing overall construction time and inflationary cost pressure. Reginald Coopwood, Regional One’s president and CEO, said buy‑in of multiple parcels would make a less disruptive build possible and allow trauma, high‑risk obstetrics and neonatal services to be prioritized earlier in construction.

Commissioners pressed for details. Commissioner Heidi Thornton objected to the timing and said documents were provided too close to the meeting; she singled out the seller for one parcel, a Delaware‑incorporated affiliate formed in 2024, and asked why the price rose from an earlier sale price of $3.7 million to the county’s $16.9 million purchase price within a year. Daryl Cobbins of Universal Commercial Real Estate explained that the recent owner had invested substantially in converting the warehouse parcel toward a self‑storage facility (roughly $8 million of capital work) and that an income‑capitalization appraisal by BBG valued the income potential at a higher stabilized value — BBG estimated a stabilized value of roughly $19.3 million for the storage conversion, supporting the negotiated price.

County staff and Regional One said environmental due diligence (phase I/II) had been completed by a local firm and coordinated with the Tennessee Department of Environment and Conservation; staff also said the proposed purchases fall within the county’s FY2025 capital budget. Commissioners asked for copies of appraisals, environmental reports and the proposed overall campus plan used to program the hospital; staff indicated additional parcels (labeled parcels 3–5 in materials) are the subject of nonbinding letters of intent and would be brought back to the commission for approval.

Opposition and process concerns: Thornton cast the lone no vote and repeatedly requested more time to vet documents and seller history. Several commissioners restated support for the purchase as a way to reduce construction timeline and related costs; Commissioner Steve Bradford, with construction experience, said the shorter timeline reduces general‑condition costs and inflationary exposure. Commissioners also confirmed project programming work is underway with project managers and architects to define the facility scope and funding plan; Regional One said it would pursue state, federal and philanthropic funding to reach the total project cost.

Outcome: The votes for Items 17a and 17b passed (11 ayes, 1 no). The commission approved appropriation of FY2025 capital improvement funds within previously approved budget authority, enabling county staff and Regional One to proceed with purchase and further programming.

What’s next: County staff said remaining parcels under letters of intent will be returned with purchase agreements; Regional One will continue site programming with consultants and pursue funding to match the campus plan.