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IU Health To Transfer Ownership Of Bloomington Hospital To City

IU Health estimates the entire property is worth about $16 million.

Indiana University Health will transfer ownership of the current IU Health Bloomington Hospital property to the City of Bloomington. The future of the hospital site has been uncertain for years.

A letter of intent specifies the city will pay $6.5 million for the property and a few surrounding parcels. IU Health will use the funds for the new Regional Academic Health Center. Officials say the total value of the site is almost $16 million, so the city is purchasing the property at a discount.

IU Health will demolish the hospital facility on the current site prior to transferring ownership.  It will cost between $7 and $8 million to demolish, remediate and turn over the property to the city. Mayor John Hamilton says the city has not decided the future of the site.

“By making this agreement at this time, our community has the advantage of time to study various options, gather more public input, and plan for the next use of this clean site,” he says.

A Hospital Site Reutilization Steering Committee has been working in groups for several years to determine the best viable options for the space on 2nd Street.

Jack Baker was a member of the committee under Mayor Mark Kruzan. He says demolishing the hospital instead of converting it was more feasible.

“A hospital is a hospital. It is designed to be a hospital and to convert to some other type of facility can be very difficult to do,” he says.

Construction on a new hospital along State Road 45/46 at the current site of the IU golf driving range is expected to be complete in 2020. IU Trustees approved the design plans for the new 700,000 square foot facility in August.

IU Health and the City will enter into a binding purchase agreement no later than Feb. 15, 2018.

Sara Wittmeyer contributed to this report. 

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