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Putnham County moves to sell two county‑owned nursing homes; sets minimum sealed‑bid prices
Summary
After reviewing appraisals and lease terms, commissioners declared two county‑owned nursing homes surplus, set minimum sealed‑bid prices (Crescent City $10 million; Palaca $5.6 million) and authorized the competitive disposal process. Commissioners cited rising maintenance costs and limited county control under current leases.
Putnham County commissioners on March 10 voted to declare two county‑owned nursing facilities surplus and set minimum sealed‑bid prices, moving the properties into a statutory disposal process.
What the board decided: The board voted to place the properties on the surplus list and to solicit sealed bids with minimum bid thresholds the board set in public session: $10 million for the Crescent City property and $5.6 million for the Palaca (Palm Avenue) property. The action requires declaring the properties no longer needed for a county public purpose and then following the statutory competitive disposal process.
Why now: Staff provided recently completed appraisals and summarized that both nursing homes are under long‑term leases that run through 2032 with options to renew. Commissioners and staff discussed the county’s limited operational control (the facilities are operated by private managers under lease), the rising capital and maintenance burden and modest net revenue the county currently receives from the properties. Several commissioners said the county’s role as landlord for long‑term skilled‑nursing facilities is not a preferred long‑term function for the county.
Key remarks: Commissioner Harvey framed the discussion around fiscal stewardship: “If they want to own it, let them own it…they have the ability to come back to us… and ask us to do things for them that…chip into any money we’re getting back on the lease.” Commissioner Paliser said she did not believe the county should remain in the nursing‑home business. Commissioner Alexander noted past major mechanical repairs can quickly push operating economics into the red.
Lease and revenue context: During discussion Commissioners referenced the current lease structure and the facilities’ revenue contributions to county coffers (figures referenced in discussion: roughly $86,000 and $128,000 annually were cited by commissioners as current returns to the county). Staff confirmed the properties are leased and that purchasers would acquire them subject to existing leases unless those leases change by their terms.
Next steps: The board’s motion declared the properties surplus and set minimum bid thresholds. Staff and the county attorney said the next steps are (1) a formal finding the sites no longer serve a public purpose, (2) publication of the surplus declaration and solicitation of sealed bids, and (3) a competitive sale process that the board would approve if and when bids are received. Staff also noted that appraisal values are a fiduciary tool and not a required listing price; the board may accept or reject bids that differ from appraised or minimum amounts.
Quoted: “I don’t believe the county should be in the nursing home business,” Commissioner Paliser said. Commissioner Harvey: “If they want to own it, let them own it and let them have the full compliments of being the owner.”
The board took the action by voice vote; the record reflects a majority in favor and the board directed staff to proceed with statutorily required disposal steps and to return with details about the sealed‑bid process.
