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  • Commission will put old hospital up for bid


By Myrna Trauntvein
Times-News Correspondent

Compromise was the order of the day at Juab County Commission meeting as commissioners determined to put the old county hospital up for bid.

Wm. Boyd Howarth, commission chair, wanted to detach the hospital clinic, from the property before the bids were advertised so that the Mountainland Headstart preschool would never be ousted from the facility as long as the program continued.

Commissioners Robert Steele and Neil Cook think leaving the property attached with an iron-clad lease in place might make the property more attractive to a potential buyer.

The compromise? Allow bids to be entered for both options and allow themselves, as commissioners, the opportunity to select the most attractive of the bids or reject all bids.

"Why not do the bidding process in such a way that bids could be offered both ways," said Jared Eldridge, county attorney.

"The safest thing to do would be for the county to keep that portion of the property (where Headstart is located)," said Eldridge.

Nevertheless, he said, the county could write a new lease agreement and record it at the recorder's office. Anyone doing a title search would see the deed and the attachment and would know the property was encumbered.

Currently, he said, the lease agreement is for 10 years with a renewable lease opportunity available each year after that.

"We could create an iron-clad lease agreement," said Steele. "The bidder needs to know that we will protect the lease for as long as Headstart wants to be in the building."

He suggested the commission make the lease extremely long term- 100 years--and that they leave in a clause that would allow Headstart to leave the facility and the agreement with 60 days notice.

"The Headstart portion of the property is already, essentially, carved off," said Eldridge.

The heating system, wiring, plumbing, sewer and all utilities are separate from the old hospital.

"You gave me this assignment last January," said Cook. "Until now, I have come up against a brick wall."

Cook said he was of the opinion that the county would be more likely to get more from the property if the two sections were sold as one. He thought it would be more attractive to a potential owner to have a tenant in place from the beginning.

"It would be advantageous to a buyer to have the benefit of a tax write-off as a donation to Headstart," said Steele.

If the property's rental value were considered, and that amount could be depreciated over a number of years, the owner could use that as a tax write-off.

Eldridge said he was not certain the write-off would be enough to make the option attractive.

"I am working on guardianship," said Howarth. "I am of the opinion that if the building were separated from the rest of the property, if Headstart ever wanted to break the lease agreement, then the county could sell the property."

All did agree, in the final analysis, to have a new bid document drafted for acceptance at the next commission meeting, the second Monday of November, and did agree that the bids could be advertised after that date.

All agreed that the bids will be allowed in either of two ways&emdash;with or without the Headstart facility attached to the former hospital property.