Mayor John Evans Daly called the meeting to order and the commission moved to advance a memorandum of understanding (MOU) with Florida State University that outlines a proposed transfer of assets tied to Tallahassee Memorial Hospital (TMH) and directs staff to proceed toward definitive sale and lease documents.

The action, which the commission approved 3–2, follows a packed public hearing in which dozens of residents, students, medical faculty and community leaders testified both for and against the proposal. Supporters said the partnership would expand specialty care and training locally; critics said the city had not secured a fair price, had offered insufficient engagement, and risked surrendering community control to a state institution.

The MOU described at the meeting includes three principal payment and investment components that city negotiators highlighted: a $109 million payment spread over 30 years, a pledge that FSU will make about $100 million in capital improvements to the hospital within roughly 8½ years, and an additional commitment of about $150 million toward other facility‑related items and programmatic investments. "The first component is just a straight payment of, you know, a $109,000,000 over 30 years in equal payments," Mark Muschian, the city’s negotiator and attorney, told the commission during his presentation.

President Richard McCullough of Florida State University framed the MOU as a major step toward creating an academic health center in Tallahassee. "This is a milestone day," McCullough said, adding that he expects the partnership to expand clinical services, research and training opportunities in the region.

Public comment revealed stark divisions. Carson Dale, FSU’s student body president, said students "are excited for this next chapter" and emphasized increased local clinical opportunities for students. Several pastors and community groups described access shortfalls for neighborhoods on Tallahassee’s South Side and said an academic center could bring needed specialty care. By contrast, critics including local residents and civic organizers urged the commission to pause the transaction, seek independent appraisals and demand more robust community engagement.

Opponents pressed the commission on valuation and on whether the $109 million figure fairly compensates Tallahassee taxpayers for the assets and the leverage they represent. "Don't just rubber‑stamp what the city manager has negotiated," Ernie Payne told commissioners, arguing for more negotiation to "get a better deal." Several speakers also raised concerns that the proposed governance and board composition could leave local interests subject to statewide political influence.

City attorneys and negotiators responded that the MOU contains enforceable remedies if FSU fails to meet contract obligations, and that the combined transactional and investment components aggregate to roughly $360 million in contractual commitments, with a broader 30‑year strategic investment vision cited at approximately $1.7 billion. Counsel described the reconveyance and remedy process as including mediation and, if necessary, court enforcement.

Commissioners split along procedural and valuation lines. Commissioner Jeremy Matlow urged the commission to require two accredited, independent appraisals before advancing; that substitute motion failed on a 2–3 vote. Mayor Pro Tem Curtis Richardson, Commissioner Diane Williams Cox and Mayor John Evans Daly supported moving forward with the MOU; Commissioners Matlow and Jack Porter voted no.

The commission’s vote advances the city’s recommended action to adopt resolution 26‑R‑O3 to make certain findings and to authorize the city manager to execute the MOU with FSU. Definite transfer documents — an asset purchase agreement and an operating lease between FSU and TMH — are expected to be negotiated and returned to the commission for review and formal approval. Staff also noted that the third public hearing on the item is set for March 11, 2026, at 9 a.m., when the commission will see the more detailed agreements.

What happens next: if the parties reach final definitive documents, the commission will consider the asset purchase agreement and related lease; the MOU itself is nonbinding and intended to record mutual intent and key terms pending final agreements. City negotiators said indigent/charity care provisions would remain in the contract and that remedies exist if commitments are not met.

The TMH‑FSU item dominated the meeting’s public comment portion; the agenda also included proclamations for Arbor Day and Human Trafficking Prevention Month, a street renaming to Dave Lang Street, the sale of a small surplus parcel, and the introduction of a Southwood zoning ordinance.