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Commission debates zoning and land‑use options for Old Grace Hospital site after owner discloses interest
Summary
Commissioners discussed demolishing the Old Grace Hospital buildings and whether T1 zoning, a conditional use, or a land‑use plan amendment would be needed to permit proposed apartments and townhouses; the chair declared a partial ownership interest and no formal zoning action was taken.
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The Batesville Planning Commission discussed potential redevelopment of the Old Grace Hospital site and whether current zoning and the land‑use plan would allow the housing the owner and city are considering.
The chair announced on the record that he owns part of the hospital site. Staff said there is a joint project between the city and the owner to demolish the existing buildings and that the likely outcome is housing on part of the parcel. Commissioners then explored zoning pathways, noting that the site is currently shown as T1 (a downtown/commercial zone) which permits apartments above the first floor by right but restricts first‑floor residential facing streets. One commissioner said: "If you resone it to R2 ... the problem there is just it will basically be a spot," raising concern about creating isolated residential zones.
Staff and commissioners discussed alternatives: keep T1 but dedicate the front portion to city green space and place apartments in the rear so the T1 standards are not violated; pursue a conditional use permit for residential where appropriate; or consider a land‑use plan amendment and public hearing to anticipate residential use in that location. Several commissioners urged a public hearing so the public and commission could consider whether the land‑use plan should be revised to anticipate residential uses rather than commercial.
The commission did not take formal action or vote on rezoning or a land‑use amendment at the meeting. Staff agreed to coordinate with the applicant on additional detail and to prepare materials for public hearing if the commission directs that path forward.
What happens next: staff and the applicant will refine the proposal and, if warranted, the commission will hold a public hearing to consider whether to amend the land‑use plan or to proceed with rezoning/conditional use processes.

