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Purchase Agreement For Current IU Hospital Site Facing Delay

By Taylor Haggerty

Posted February 15, 2018

The City of Bloomington and IU Health are delaying the deadline for a purchase agreement for the current hospital site on West Second Street.

The city originally planned to complete the purchase agreement for the 24 acres of land by Feb. 15. But, that's being pushed back by about a month.

IU Health agreed to transfer ownership of the site to the city in early January. But both parties have to approve a purchase agreement before the deal can move forward.

The city will take ownership of the site when the hospital moves to its new location off State Road 45/46 in 2021. The city will purchase the current hospital site for $6.5 million, and IU Health will be responsible for the current facility's demolition.

Bloomington Deputy Mayor Mick Renneisen says none of that is changing. The delay is to give officials more time to review the contract.

"No one's concerned about coming to an agreement, and everything is moving forward as scheduled," Renneisen says. "We just ran into a little bit more time to review the purchase agreement details between the two entities."

Teri deMatas is the Vice President of Marketing and Community Relations for the IU Health Bloomington Hospital. She says IU Health isn't worried about reaching an agreement with the city.

"There are no problems with the deal," deMatas says. "IU Health is committed to executing the deal with the city, and we are confident that a deal will be reached."

Renneisen also says the delay won't have an impact on the future development of the area, in part because they've still got plenty of time before the site changes hands.

"We have plenty of time to, and will conclude these contract negotiations well before that," Renneisen says. "And it won't impact anything that will happen on the site at all."

Renneisen says they're now hoping to complete the purchase agreement and present it to the Bloomington Redevelopment Commission March 19. The IU Health board must also approve the agreement, but that meeting has yet to be scheduled.

The city has hired an independent consulting firm to develop plans for the land.

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