Harrison County hearing flags $7M-plus cost, funding uncertainty for health department and diversion center renovation

HARRISON COUNTY, Miss. — Harrison County officials heard an updated cost and schedule report on May 5 for a planned renovation to house the county health department and a mental health diversion center, with revised construction estimates now at $6.9 million to $7.6 million and a total project cost projected at $7.4 million to $8.1 million.

The presentation by project lead David Hardy summarized a scope of roughly 30,400 square feet of renovation — about 19,400 square feet for the health department, 9,400 for the diversion center and 1,600 for shared areas — and recommended replacing mechanical systems to meet health-care ventilation codes. "The existing systems are residential-style split units with fiberboard ductwork, which is not allowed under the requirements for ventilation of health care facilities," Hardy said. He recommended full mechanical replacement and new ceilings and LED lighting, work included in the current cost range.

County officials said the construction schedule, if the board moves forward, would seek bid receipt at the end of July, bid award in mid‑August and construction completion by December 2026, with roughly 10–12 months of construction.

Why it matters: the project would create consolidated county health services and a mental health diversion facility but would require a multi‑million dollar capital outlay and depend on external operating grants and other funding. Officials repeatedly raised questions about whether state and federal grant money will be available when construction completes.

Board discussion and funding options Board members and staff discussed several funding uncertainties during more than an hour of Q&A. County staff said earlier commitments of ARPA funds and interest earnings provide some local capacity: the county reported about $4 million of ARPA interest earned, with roughly $1.5 million remaining after prior commitments that could be applied toward renovations.

Hardy and others cautioned that portions of the work — especially mechanical, electrical and plumbing upgrades required for inpatient or higher‑occupancy spaces — drove the cost upward. For the diversion center specifically, Hardy estimated architectural costs of about $1 million and total build‑out (including MEP) "in the neighborhood of $1.8 million." He added that inpatient/diversion components carry higher ventilation and code requirements because they may include overnight stays.

The board asked whether the diversion center and health department still expect the state grants and operating funds that had been discussed earlier; staff said they would confirm with Pine Belt and state contacts. "We're somewhat confident, but we need to proceed to meet schedules," the county administrator said. Officials noted that possible state budget reductions discussed at the meeting could affect grant flows.

Regulatory and program considerations Hardy emphasized that the building's existing shared return-air design would not meet requirements for separation of exam rooms and clinical spaces; achieving compliance requires ductwork and air-handling modifications. "When you're dealing with public health — TB, measles, COVID — you don't want shared air between exam rooms and offices," he said.

Board members also raised program-level questions: whether the health department could reduce its footprint compared with current plans, and whether the diversion center's operating grants and program partners would be in place when the facility is ready. Staff said those are operational decisions to be worked out with the Mississippi State Department of Health and mental health partners.

Next steps and fiscal prudence The board did not vote to start construction that day but directed staff to continue negotiations with state partners and to confirm grant availability. Officials said they would return with more specific funding breakdowns, a proration of mechanical/electrical costs between the health department and diversion center components, and any revised schedule details.

The county administrator said the board needs to move quickly to meet obligation deadlines for some federal funding instruments while also verifying that operating grants will be available when the facility opens. "We need to proceed because we're pretty far into the project," the administrator said.

Ending Staff committed to follow up with the Department of Health and Pine Belt partners on grant status and to return with a more granular cost allocation and financing options at a later meeting.