Commissioners approve 15-year lease for Muncie Recovery facility; approve multiple contracts, benefits changes and routine payments

Delaware County commissioners on Oct. 20 approved a 15-year, triple-net lease for the county-owned mental-health facility to Indiana Treatment Centers (doing business as Muncie Recovery OPCO LLC), and took a series of related votes on contracts, employee-benefit changes and routine county expenditures.

The lease transfers operational responsibilities to the tenant. Under the agreement the tenant will seek Medicaid certification for the facility, recruit and onboard staff and assume billing and day-to-day operations. Lease rates begin at $17 per square foot in the initial term and escalate annually through the first 15-year term to a stated per-square-foot rate ($25.71 at the first-series escalation). The lease includes tenant obligations for property taxes and options for multi-term extensions; the county described the arrangement as a revenue-generating, triple-net lease that reduces the county’s staffing and billing responsibilities for the facility.

Commissioners also voted to: allocate up to $20,000 from Edit project 9 to Guardian Advocates (a local 501(c)(3) that provides guardianship and volunteer advocacy services for seniors and incapacitated adults); approve the county’s annual contract with Purdue Extension for $100,345 to provide extension services; extend a liquid-asphalt contract at a rate of $2.60 per gallon through the 2026 construction season; and approve amendments and invoices for completed highway work on McGuyard (the city of Muncie was invoiced for 50% of materials totaling $40,961.39).

On employee benefits, the board approved three HR actions presented by the county’s human-resources representative: elimination of the current HRA plan design, a transition of the county HSA administration from Star HSA to Lively, and the implementation of a dependent-care flexible spending account administered by Lively. The HR presenter confirmed in the meeting that staff will conduct multiple in-person and virtual education sessions for employees ahead of open enrollment.

The board approved payment of several claims, a final ARP-funded disbursement tied to BW construction ($254,590.37), and regular payroll disbursements. During the meeting some commissioners and staff expressed concern about a multi-page listing of credit-card payments, and commissioners instructed staff to supply claim forms and supporting receipted documentation for future claims cycles to improve transparency (see separate article on auditor/credit-card procedures).

Votes at a glance - Muncie Recovery OPCO LLC lease (15 years, triple-net): approved by roll call; tenant to seek Medicaid certification and assume operations. - Guardian Advocates: $20,000 allocation from Edit project 9: approved (roll-call yes votes). - Purdue Extension contract ($100,345, one-year services): approved. - Asphalt liquid emulsion contract extension ($2.60/gal): approved. - McGuyard highway amendment (actuals vs estimate; city invoiced $40,961.39): approved. - HR actions: elimination of HRA design, transition to Lively HSA, and implementation of dependent-care FSA: approved. - Final ARP disbursement to BW construction ($254,590.37): approved. - Payroll (Oct. period) and claims: motions passed; a commissioner objected to lack of credit-card detail and asked for enhanced documentation.

What the lease means County staff told commissioners that, under the prior operating proposal the county would have been responsible for recruiting staff, establishing billing structures and managing Medicaid certification — responsibilities the new lease places onto the private operator. Commissioners said the lease is intended to reduce county operating costs and produce property-tax revenue because the tenant will pay real-estate taxes under the triple-net terms.

Next steps and follow-up The county will coordinate the lease possession date and insurance/utility transfers with the tenant and will receive documentation once Indiana Treatment Centers begins Medicaid certification and staffing. The county also instructed HR and benefits staff to complete employee education sessions before open enrollment and to coordinate the HSA account transfer with the treasurer once the board’s approval is formalized.

The board scheduled additional work on internal purchasing and claims-process transparency, and asked the auditor and claims staff to provide department-level claim forms and supporting receipts for the next claims cycle.