WILLMAR -- The Kandiyohi County and City of Willmar Economic Development Commission may take matters into its own hands to make sure that a 16-bed adult mental health hospital is located in Willmar.
The Economic Development Commission is exploring the feasibility of building the psychiatric hospital and leasing it to the state.
Not only could it serve as a profitable venture for the EDC, it would also provide ab-out 35 jobs, which co-uld offset job losses when the adult mental health program closes at the Willmar Regional Treatment Center.
"It's not only jobs, it's keeping a valuable asset here," said Steve Renquist, EDC director, adding that having the programs in Willmar would be beneficial to local patients who need care.
Programs at regional treatment centers are being replaced with smaller community hospitals throughout the state. One of those hospitals was planned for Willmar, but when Rice Memorial Hospital decided last month not to participate in the project, the state Department of Human Services said that other communities in the 18-county area served by the Willmar Regional Treatment Center would be considered for the new 16-bed facility.
ADVERTISEMENT
The state was expected to start requesting bids in the near future from private developers to build a psychiatric hospital somewhere in the region.
The state would then rent the facility and provide the programs.
Renquist said if a government entity, such as the EDC, steps in now with a proposal to build the hospital, the state will not pursue private bids. He said that will guarantee that the hospital is built in Willmar.
The EDC has bonding authority that would not affect the city and county bond rating. Future tax revenue would be used as collateral. Revenue generated from leasing the facility to the state could potentially pay for the mortgage in 10 years.
Initial information from private bond counsel shows it would be "doable and legal" for the EDC to pursue the venture, said Renquist.
Sen. Dean Johnson, DFL-Willmar, said it's "logical" for the EDC to build the facility to make sure the psychiatric hospital stays in Kandiyohi County to keep jobs here and to provide needed programs for the region. A state contract would provide the EDC with financial security that's a "99 percent sure deal."
Wayne Thompson, Kandiyohi County administrator, said he thinks it's a "good project" for the EDC to take on.
One rule for economic development is that the public sector "has no business" being involved with projects where the private sector "is willing to enter and can flourish," said Renquist.
ADVERTISEMENT
This case is an exception to the rule, he said, because of the risk that the psychiatric hospital could be built outside of the county.
The EDC will have to weigh the benefits and the risks before going ahead. The EDC was informed about the proposal last week in a memo sent by Renquist. The proposal is expected to be discussed at board meetings in September.
Renquist said land on Willmar Avenue Southwest near the Rice Care Center is being considered for the hospital site.
Johnson said that would work well with potential plans to build a new veterans nursing home in the same area.
