Posted: 1/11/06
Lawsuit puts DMH deal on hold
Cliff Buchan
News Editor
A lawsuit against the Memorial Hospital District governing board has temporarily delayed the final transfer of title of the old District Memorial Hospital property in Forest Lake to Fairview Health Services.
The governing board reached that decision Monday after a 90 minute closed session to review the lawsuit filed by the Forest Lake Community Association. The citizen group sued the hospital board and Forest Lake City Council on Dec. 28 attempting to halt the sale of the property to Fairview and block two purchase agreements Fairview has signed for the sale of the hospital building and grounds.
Chair Mike Perrault of Hugo said Monday Fairview has notified the hospital board it is prepared to end the affiliation agreement with District Memorial Hospital that has been in place for the past 10 years. Fairview last year notified the board it would exercise its option under the lease with the hospital board to take possession of the property for the nominal fee of $1 early in 2006.
Perrault also said Monday that Fairview has signed an amendment to the lease addressing excess proceeds. The amendment was proposed by the board last October and requires that all excess proceeds from any Fairview sale remain within this Fariview region for health care purposes.
Dan Anderson, Fairview president, said during a break Monday that Fairview is hopeful the transfer of property can take place soon.
Fairview has entered purchase agreements to sell land on the campus to Duffy Development and Human Services, Inc. where a 48-unit affordable housing complex has been proposed.
Fairview will also sell the hospital building and a piece of land to a group that will lease the site back to Lakes International Language Academy, a public Spanish immersion charter school that is now in its second year of leasing space in the building.
Anderson reports
In his report to the hospital board, Anderson said Fairview is on track to break ground in March or April for its $29 million construction and expansion effort of main hospital campus in Wyoming.
A 14 to 20 month construction program is anticipated for the project that will involve 85,000 square feet of new and renovated space.
The project is expected to handle growth needs for the next five years, Anderson said.
Anderson also reported that the new Fairview Clinic located in Victor Gardens in Hugo opened on Nov. 1 and expansion is also coming at the Lino Lakes Fairview Clinic.
Current Fairview clinics in Rush City and Chisago Lakes have adequate space. A major expansion is likely coming to the North Branch Fairview Clinic in 2007, Anderson said.
Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
Fax 651-464-4605
