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County approves 55‑year ground lease with Appalachian Center for Hope
Summary
Smyth County approved a 55‑year ground lease to Appalachian Center for Hope to rehabilitate a historic building in Marion for residential treatment services. The lease includes a nominal annual rent, tenant obligations for rehabilitation, and provisions for tax and insurance responsibilities.
Smyth County voters heard a detailed presentation and legal reading of a draft 55‑year ground lease with Appalachian Center for Hope (ACH) before the Board approved the agreement. The lease grants ACH a long‑term leasehold on approximately 2.91 acres in Marion (Tax ID 211‑130‑1L) for rehabilitation and operation of an historic building as a residential treatment facility focused on substance use disorder services.
Key terms include a nominal annual rent (one dollar per year in the lease text, with initial years shown as [$1.00] annual installments per the draft), tenant responsibility for rehabilitation and ongoing operating costs, preservation of tax attributes related to improvements during the leasehold, and a detailed regime for insurance, indemnification, and condemnation procedures. Tenant will have sublease rights, subject to Landlord consent provisions in limited instances, and the lease contemplates possible conveyance to tenant for $10 after the Commencement Date.
The lease was presented in the meeting transcript and contains extensive legal provisions addressing hazardous substances, environmental compliance, default and cure periods, assignment and subletting, insurance, and alterations. Following staff briefings and a motion by Royal Oak District Supervisor Courtney Widener, the board voted to approve the lease as presented. County officials said the lease aligns with county goals to expand local behavioral‑health capacity and to leverage state and philanthropic funding for rehabilitation and operations.
The county also approved a capital cost agreement and related documents in later sessions to enable ACH to draw down construction and operating funds in a controlled process. Officials said ACH’s project is a high‑priority local recovery and treatment initiative tied to opioid‑abatement and community recovery funding.
