City officials hoped to sell the property for a profit, but a potential buyer now is hesitant because of its condition.
By CANDACE RONDEAUX
Published August 7, 2004
TARPON SPRINGS - Plans to develop a prime city property could be held up several months by repairs to the aging facility.
When the Tarpon Springs Health Care Center closed its nursing home early this year, city officials began making big plans. Valued at more than $2-million, the 5-acre property at 501 S Walton Ave. could be a cash cow for the city, they said.
But now officials say making needed building repairs could put a dent in dividends from the property and put off any final deals until next year. Meanwhile, the sheer size of the 145-bed facility could narrow the field of potential tenants, officials say.
"The nursing home must be licensed for so many beds so you'd have to find somebody who can do that," said city business services specialist Charlie Attardo. "It's not like someone starting a hamburger stand. You need someone who's got all these kind of credentials and qualifications."
There aren't many large-scale nursing home operators left in Florida, Attardo said. But one potential tenant already has expressed interest in the property. Attardo declined to name the interested party but said the health care operator had recently expressed reservations about a possible deal. The company's representatives told the city "the facility may need too much work to effectively use it as a nursing home," Attardo wrote in a memo to city staffers.
The building's previous tenant, Sea Crest Health Care Management, moved patients and equipment out of the building months ago, well before the company's lease with the city expired.
A March inspection of the property revealed that Sea Crest left behind "significant damage" and extensive renovation would be needed before it could be occupied again, the memo said. The list of repairs includes a leaky roof, sporadic air conditioning, minor electrical repairs and other items said city development services director Joseph DiPasqua.
"The building is itself structurally sound, but there's some maintainance issues that need to be attended to," DiPasqua said.
Patrick Duplantis, an executive with the former operator, did not return several calls from the Times, including one on Friday.
The nursing home's history goes back to 1979, when a special nonprofit corporation was set up to borrow $2.2-million in tax-free bonds to build the facility. Tax laws at the time required that the city become the owner of the nursing home when the bond debt was paid off.
The nursing home's former operator, Beverly Enterprises, signed a 9-year lease with the city in 1995. The country's largest nursing home chain at one time had plans to purchase the facility from the city. But following a series of costly lawsuits filed against Beverly, the company agreed to sell 49 of its Florida nursing homes in July 2001 to a group callled NMC of Florida for $165-million.
In October 2001, Beverly Enterprises sent a letter to the city saying it intended to sell the property to Sea Crest. After that, city officials said, the company's communications with the city were sporadic. But earlier this year Sea Crest, Florida's largest nursing home operator, informed the city that it planned to pull out of the Walton Street facility before its lease expired on July 1.
Attardo said Sea Crest has been in touch regularly since the move, promising to negotiate payment for damages and repairs. Renovation costs have yet to be determined, he said.
After that it will be up to city commissioners to decide whether to sell or lease the property. But if they choose to sell they'll have to get residents' approval first. Generally, the city of Tarpon Springs is required by its charter to get voter approval at a referendum when it wants to sell or donate a piece of city-owned property.
