Major developments with Huntingburg St. Joseph Hospital property

Here is an artistic rendering of what the new development at the former-St. Joseph Hospital will look like. Pete Schwiegeraht, a developer with Cincinatti-based Miller-Valentine Group, presented the Huntingburg Council with this drawing tonight when he explained the plans for the beleaguered building. The new development will house 48 one- and two-bedroom condos for individuals 55 and older. To assist in the firm's tax credit application, the city confirmed it would contribute $300,000 in economic incentives to the project. The $300,000 could be funded through the creation of a Tax Incremental Financing District, with the city's Tax Abatement program or through other means. Story Friday morning. — Here is an artistic rendering of what the new development at the former-St. Joseph Hospital will look like. Pete Schwiegeraht, a developer with Cincinatti-based Miller-Valentine Group, presented the Huntingburg Council with this drawing tonight when he explained the plans for the beleaguered building. The new development will house 48 one- and two-bedroom condos for individuals 55 and older. To assist in the firm’s tax credit application, the city confirmed it would contribute $300,000 in economic incentives to the project. The $300,000 could be funded through the creation of a Tax Incremental Financing District, with the city’s Tax Abatement program or through other means. Story Friday morning.

Huntingburg — Two developments have occurred in the past week with the long beleaguered St. Joseph Hospital building.

A Cincinnati-based developer plans on creating 45 to 50 senior living units in part of the former-St. Joseph Hospital building and another business signed an option to purchase the empty Medical Professional building on the campus’ south side.

On Friday, Pete Schwiegeraht, a developer with Miller-Valentine Group, finalized an agreement with Huntingburg Partners, LLC, to purchase approximately 30,000 square feet of the main hospital’s available 90,000 square feet.

The purchase is dependent upon the group receiving rental housing tax credits through the Indiana Housing and Community Development Authority. These tax credits will act as the primary funding source for the project.

According to Schwiegeraht, the company has extensive experience working with the state for these types of projects. “It is a very competitive process [receiving approval for the tax credits] but this project can score very well. We are optimistic,” Schwiegeraht said. “It is going to be as much as $30,000 for the application, we wouldn’t make that investment if we thought we couldn’t get it funded.”

The group will submit an application for the tax credits in November and will know if the tax credits are approved by the spring of 2014. Construction and renovation on the building will begin that fall with plans to open the units for rental in the fall of 2015.

Schwiegeraht stated the company will invest about $9 million to acquire, renovate and add to the northwest wing of the building to create the senior living units. The senior independent living apartments will be one- to two-bedroom units ranging from 675 to 875 square feet with full amenities.

Plans for the construction include renovating the first and second floors of the west and north wings along with constructing a two story extension to the north side of the existing hospital building.

Miller-Valentine Group, a 50-year-old nationally recognized commercial and residential real estate company with developments throughout the Midwest, will be the general contractor on the project and will bid the project locally.

Once construction is complete, they will continue to manage the property.

The group reached out to Huntingburg about four months ago about potential properties to be developed for senior housing. “There is a need for senior housing in Huntingburg and certainly, this is an underutilized building that we thought could be retrofitted into senior housing,” Schwiegeraht said.

Doctors Plaza at 214 17th Street — Doctors’ Plaza at 214 17th Street

Wednesday, Andy Welsh with Welsh Realty Corp, reported a company signed an option to purchase the doctors’ plaza building at 214 17th Street. The 16,456 square foot building housed several doctors’ offices and is south of the 20 acre parcel that represented the hospital and its ancillary services when it was in operation.

The building is currently owned by Freedom Bank.

Welsh, who also brokered the Miller-Valentine deal, stated the company wishes to remain unidentified at this time but did comment plans for the building were for the betterment of Huntingburg.

The hospital filed for bankruptcy soon after it closed in 2007. It was purchased by St. Joseph LLC — a partnership involving Dr. Ijaz Mahmood and three other doctors — in 2010. Dr. Mahmood bought out the partners and formed Huntingburg Partners, LLC in 2012.

Dr. Mahmood — whose original plan did not include using the entire hospital — said sharing the expense to maintain the building with Miller-Valentine makes Huntingburg Partners’ project more attractive to investors. “It is very promising that these things are moving forward,” Dr. Mahmood said in a phone interview Friday.

The City of Huntingburg is in the process of reviewing and revising its comprehensive plan through Orlando-based firm, Real Estate Research Consultants, Inc. Tom Kohler, a principal with the corporation, presented an overview of the comprehensive plan that accented the development of the St. Joseph Hospital property as a key area of importance for future economic development on Huntingburg’s north side.

“We are excited about this opportunity,” Huntingburg Mayor Denny Spinner said. “They [Miller-Valentine Group] have a proven track record of providing quality housing in the State of Indiana and across the Midwest. I want to applaud the Mahmoods and everyone who has worked to bring this together.”

The mayor said he receives questions about the hospital property just about everyday. “There are still some hoops to jump through, but this is certainly an enormous step forward.”

Pete Schwiegeraht is on the agenda to address the Common Council at their next meeting to be held on Thursday, October 24 at 7:30 p.m. at the City Hall Council Chambers.