Putnam commissioners declare two county‑owned nursing homes surplus, set sealed‑bid minimums

Putnam County commissioners on March 10 voted to declare two county‑owned nursing home properties surplus and authorized a sealed‑bid disposal process with minimum bids set at $10 million (Crescent City property) and $5.6 million (Palatka property).

Why it mattered: county staff delivered recent appraisals for the two facilities and reviewed lease arrangements. Commissioners expressed concern that the county’s role as landlord of long‑term care facilities — leased to private operators — exposes taxpayers to rising maintenance costs, deferred capital needs and limited control over operations. Several commissioners said they prefer private ownership by a health‑care operator while ensuring continued resident care.

Board discussion and vote: commissioners asked whether sales would be subject to existing lease terms and were told purchasers would take properties subject to leases, which may affect market value. County Attorney Richard Commando explained the statutory disposal process: before selling a county property the board must determine it no longer serves a public purpose and must dispose of it through competitive sale. After discussion, the board voted to declare both properties surplus and to post minimum sealed‑bid thresholds: $10,000,000 for the Crescent City site and $5,600,000 for the Palatka site.

What commissioners said: “I don’t believe the county should be in the nursing home business,” Commissioner Palisier said, echoing other members who described the facilities as specialized, capital‑intensive assets better managed in the private sector. Commissioner Harvey noted that operators currently profit from running the facilities while the county retains ownership and associated capital exposure.

Leases and tax status: at the meeting staff said the facilities are under long‑term leases (initial terms expiring in 2032 with rights to renew) and that occupants had not been paying property tax on these county‑owned buildings. Commissioners asked staff to pursue the surplus/disposal steps in accordance with statutory requirements and to report back on reserve and listing strategies.

Next steps: administration will prepare the formal surplus finding and begin the competitive sealed‑bid process with the thresholds established by the board. If no bids are received, the board may re‑advertise at a different reserve. Staff also will provide documentation of lease terms, tax treatment and any occupant transfer procedures to help inform potential bidders.

Quote: “If they want to own it, let them own it and let the market work,” Commissioner Harvey said during the debate.