Lawrence co. will determine land value for new hospital
Hospital trustees approved Martens Appraisal to establish the fair market value of property for the site of a new Allen County Hospital.
Trustees will work with the Lawrence-based office of Martens, which is based in Wichita.
It was one of four firms reviewed by trustees. Appraisal fees ranged from $15,000 to $5,050. Martens landed mid-range at $8,000 and was selected primarily because it met all the criteria in the requests for proposals which included references and a timeline of services.
In their meeting Tuesday night, hospital trustees deliberated at length whether to go with Martens or flesh out further those whose offers were incomplete, but less expensive.
“How important is time?” asked trustee Patti Boyd, Moran.
“Very important, if we want to break ground in September,” was Alan Weber’s response. Weber serves as counsel to the trustees.
Trustee Sean McReynolds reckoned the board would save the $2,600 difference in bids by moving ahead with Martens Appraisal because of the need for action.
Fellow trustees Tom Miller, Karen Gilpin, Jay Kretzmeier, Debbie Roe, Harry Lee and Boyd agreed and unanimously approved the decision.
Competitors, and their bids, were Aul & Hatfield Appraisals, $5,400, Robert Golden of Golden Realty & Appraisal Services, $5,050, and Timothy Keller of Keller & Associates, $15,000, all of Lawrence.
Appraisers from out of town were sought for two reasons. The first is because no local firms are licensed to appraise commercial property, Kretzmeier said, citing the classification of G for their licenses.
Having someone with no local ties also will make it easier should condemnation filings have to occur because of an impasse between trustees and the eight landowners who own the10 parcels of land under consideration.
“If confrontation ensues, the further removed the appraiser is from individual parties, the better for all parties involved,” Kretzmeier reasoned.
Harry Lee, chairman, voiced his desire to not use an appraisal service at all, “but rather the goodwill of our neighbors,” to determine a fair price for the parcels that lay to the north and south of Monroe Street on the east side of Iola.
Kretzmeier, an accountant by profession, said he felt more comfortable that a “fair market value be established,” by a reputable firm who, “will represent us well if a case of condemnation is necessary.”
If a property owner refuses to sell his land to the county for the hospital, then the cost of the condemnation proceedings by the appraiser will be above his stated fee, Weber said.
“All appraisers expect expert witness fees,” he said.
IN OTHER business, trustees waded through about half of the 25 pages of bylaws they need to approve as a governing body of the hospital.
Trustees are working in part from a document that dates back to 1971, the last year the hospital was controlled by a local board of directors. Weber said Mark Thompson, an attorney for Allen County commissioners who is based in Kansas City, drafted parts of the old document into a modern example of bylaws used by hospital trustees.
Joyce Heismeyer, executive director of the hospital and an HCA employee, lent her expert advice to trustees as they worked to streamline and clarify the document.
Fundraising efforts for the new hospital will be designed and directed by Harsook Companies, Inc., said Gilpin, speaking on behalf of her husband, Jim, who with Don Copley, Humboldt, serves as co-chairman of the campaign drive.
The Allen County Healthcare Foundation has provided $10,000 of the $16,000 needed to retain the consultants. A feasibility study will be conducted by Hartsook to see what a reasonable goal for fundraising will be, considering, in part, the demographics of the county. The study will include a written survey distributed to 100-200 people, followed by face-to-face interviews with approximately 40 individuals.
If findings are favorable, a capital campaign drive will ensue.
Fundraising will not be limited to Allen County, said Mary Ann Arnott, a member of the audience and also of the campaign committee.
The hope is to solicit funds from those who have a solid, but perhaps not current, connection to Allen County, through a family, school, professional or business affiliation.
Hartsook was also retained by Allen County Community College in 1995 when it conducted a capital campaign. Its goal of $1 million was exceeded by more than $400,000.
TRUSTEES have changed their meeting place to the Mary Ellen Stadler meeting room in the basement of Allen County Hospital, beginning at 7 p.m., unless otherwise stated.
Next week’s meeting will continue the review of bylaws and the consideration of land acquisitions.
The meetings are open to the public.
