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Herington authorizes insurance payment for vacant hospital; commissioners discuss marketing and land split
Summary
Council authorized payment of $22,874.24 for insurance on the vacant hospital at 100 East Helen Street and discussed keeping the property on the market, soliciting a commercial real-estate firm to market it, and potentially splitting off land (retaining helipad parcel) and pursuing market studies and grant funding for redevelopment.
The Herington governing body authorized an insurance payment for the city's vacant hospital building at 100 East Helen Street and discussed options for marketing and disposition of the building and adjacent land.
Staff recommended authorizing payment to Burns & Wilcox (to be routed through Smart Insurance) for an annual premium not to exceed $22,874.24 to maintain coverage on the 45,000-square-foot vacant facility. A commissioner moved to authorize payment; the council approved the motion during the meeting. Staff noted the quoted premium provides minimal coverage and does not include theft insurance, which could approximately double the cost. Staff also advised that replacement-value estimates approach $3,100,000.
In subsequent discussion staff recommended keeping the building listed with a statewide commercial real-estate firm specializing in South Central Kansas and establishing parameters for acceptable buyers (for example, requiring a business plan or market study). Staff suggested it may make sense to split the land off from the building and retain the helipad parcel for city control. Commissioners and staff also discussed cleaning out records, HIPAA concerns on any medical records, potential salvage of x-rays, and short-term use by public departments for storage or training.
Why it matters: The decision protects a city asset and maintains liability coverage while council considers long-term disposition choices. The discussion also addressed community priorities (limiting storage uses) and operational steps for cleaning and potential reuse.
What officials said: A staff member described the property: "This is for our vacant hospital building... It's 45,000 square foot facility with 3 out structures." On price and insurance, staff said, "You gotta insure it for basically what is replacement value or a portion of replacement value, which is an estimate closer to 3 or 3,100,000.0." On marketing, staff recommended keeping the building on the market and asking interested buyers to provide a business plan or market study.
Next steps: Staff will process the insurance payment, pursue cleaning and shredding options for sensitive records, research possible grants and market studies, and engage a commercial realtor to market the property under parameters the commission sets. The council indicated it will return to future sessions on disposition details.
