The city manager of Wheeling has had conversations with officials from private-sector entities concerning the structures standing on the campus of the former Ohio Valley Medical Center.
The city and property owner MPT, Inc, have been negotiating the acquisition of the Center Wheeling property for more than a month. OVMC, Hillcrest, and the Robert C. Byrd Child & Adolescent Behavioral Health Center were abruptly shuttered by Alecto West Virginia in early September, leaving more than 700 local residents without employment and thousands of patients in search of their medical records.
“There have been other entities that have looked at certain properties on the campus, but I am not at liberty to say what entities have inquired at this point,” City Manager Bob Herron reported. “There are a couple of decent leads that could pan out once the city acquires the property, but we are not hanging our hat on that. It’s not progressed to that point,” he said. “But there is interest, and if those possibilities were to come true, we would see significant investments put into those buildings.
“But nothing, at this point, is imminent or even close. Just conversations that have taken place,” he said. “But they do represent serious interest.”
Acquisition
The seven members of Wheeling City Council voted unanimously to table the agenda item this week until the next regular meeting scheduled for June 16. That move was made to allow more questions and answers to be exchanged between Herron and MPT officials.
“There is lot of building and square footage involved. We’re talking about 800,000 square feet, but we are very fortunate from the perspective that the current owner has maintained the property. They are vacant, but the lights are on, the heat is on, and if there’s a water problem, they fix it,” Herron reported. “And the people in charge of this potential acquisition have been very open to us and have allowed us to take our many tours that have been requested.
“All of the city council members have posed questions and they have all toured the buildings … some of them several times,” the city manager said. “It’s about due diligence, and there are a lot of questions to answer.”
Utility separation, the cost of upkeep, the city’s spending projections, funding necessary demolition, and how best to market the various buildings are some of the concerns Herron listed.
“There are the things that would be immediate, like the utilities, and we know there is the demolition of the former nurses’ residence. How do we make that decision because there are questions to be asked,” Herron said. “That’s some of the work that’s been taking place, and when the council members make that decision, they will have all of the information that they need.
“There are things that are getting worked out as far as the equipment that was left in the buildings, and things like the title work, and those kinds of things,” he said. “We are getting to the place where every member of City Council will have all of the information that they need to make a decision on it.”
June 16, 2020 – 5:30 p.m.
It was listed under “Unfinished Business” on Council’s agenda from June 2. “Purchase and Sales Agreement – Formally OVMC and Valley Professional, etc.”
The Valley Professional Center, across Chapline Street from the OVMC campus also is included in the agreement and, according to Herron, approximately 32,000 square of the building could be utilized by the Wheeling Police Department.
“If it is not acted on this June 16, then the ordinance process would have to start again, and that’s because of issues with tax law and how much the property taxes would be if it took place later,” Herron explained. “If the property is acquired by June 30, then only one year of property taxes is involved, but after that, it would be two years. That’s the way it works.
“It’s a financial incentive to get it finalized before July 1, but that’s up to Council,” he said. “Whether or not that financial incentive outweighs everything else? That’s something I am sure is on the minds of the Council members.”
If Council votes in favor of acquisition, the city would be willing to lease or sell the structures to companies in the private sector. The agreement also would prompt the renovation of the Center Wheeling parking garage, and because the campus is within a tax increment financing district, the funds for that project already are in the bank, according to the city manager.
“I personally would prefer leasing those buildings because of the revenue stream, but when it comes to economic development, we very rarely get the opportunity to lease anything,” Herron explained. “Developers usually want ownership, and the purpose for taking possession of these buildings would be to turn them over to the private sector.
“One of the tools that a city does have when it comes to economic development is the ownership of property, and we were very successful with bringing in the Health Plan to downtown Wheeling because the decision was made to acquire the properties in the 1100 block,” he explained. “That would be the intention with the OVMC campus, too, with the exception of the Valley Professional Center. But, if there is private-sector interest in the Valley Professional Building, too, I’m sure council would be all ears.”
