The Lake City Council on Dec. 1 adopted Resolution 2025-166, a measure authorizing transmission of a letter under Chapter 164 of the Florida Statutes to the Lakeshore Hospital Authority and accepting terms intended to resolve a land-use dispute tied to the hospital property and a planned conveyance to Meridian Behavioral Health.

City Attorney Martin explained the resolution implements conditions the city sought and said adoption would complete the Chapter 164 conflict-resolution process: "by adopting this resolution, you would essentially be saying that the chapter 164 conflict resolution process will be complete," he said. Martin and staff described that, once the Lakeshore board and Meridian incorporate the city's requested restrictions into their conveyance agreement, Meridian may provide services subject to the city's specified limitations. Martin said the city will transmit an administrative letter from the land-use administrator reflecting those terms.

Members of the public asked for clarification about Exhibit B to the conveyance agreement. Barbara Lindley asked whether language in Exhibit B about primary care or a federally qualified health center ("directly by purchaser or under contract with another provider") had been added by the city; Martin said the clause was included as a restricting provision so a future contractor could not be used to circumvent the city's conditions.

A public commenter objected strongly to quick placement of a late exhibit on the agenda and described extensive physical problems at the hospital, including roof leaks, mold and alleged false fire alarms. The commenter said the building was "beyond the disaster" and "should be condemned." City staff and the city attorney responded that the substantive parts of the packet were distributed previously and that only a small phrase and an addendum about reimbursements were added that afternoon.

Because Councilwoman Harris works for Meridian, she was advised to and did recuse herself from the vote; she announced she was recused during the roll call. With Harris recused, the remaining councilmembers voted to adopt the resolution. City Attorney Martin said that if the Lakeshore board next week adopts the same agreement between Lakeshore and Meridian, the Chapter 164 process would be considered resolved and Meridian could move forward under the restrictions incorporated in its agreement with Lakeshore.

The resolution refers to section 164.1057 of the Florida Statutes and to an attached letter and conveyance exhibit; it also directs the mayor and chief of police to execute documents necessary to effect the agreement. The council did not modify the substantive conditions described in the packet during the meeting; staff said further administrative steps would follow if Lakeshore approves the agreement.