Tim Ryan, tryan@wolfrivermedia.com
The developer of a proposed medical residency training program at the former Shawano Medical Center would have two years to get the program up and running, come up with an alternative development project, or let the property revert back to the city, under an agreement that will go before city officials next week.
A preliminary agreement paving the way for the facility was announced last month between the city, ThedaCare and the development group, Shawano Medical Holdings LLC.
The parties have spent the weeks since then negotiating the details and language of a final developer’s agreement.
ThedaCare officials were reviewing the final draft this week, but haven’t yet signed off on the deal.
The Shawano Finance Committee will consider the agreement at a 8:30 a.m. Monday at City Hall, 127 S. Sawyer St. The plan commission will then consider it at 4:30 p.m. Thursday at City Hall. The Shawano Common Council will take up the agreement at a special meeting immediately following the plan commission meeting.
The residency training center would cater to medical school graduates who will need additional training in residency to qualify for licensing. It would also operate as a hospital and clinic treating military veterans.
SMH would acquire the property from the city and ThedaCare for $1, but would also reimburse the city and ThedaCare for the costs they incurred clearing the title to the property. That includes the $250,000 settlement that was paid to the heirs of Susan Smalley, the original owner of a roughly 3.5-acre parcel acquired by the city in 1901 that eventually became home to Shawano Medical Center. The hospital expanded over the years, and ThedaCare now owns about two-thirds of the hospital campus.
Other costs, including legal fees, will bring the total reimbursement to $380,000, which SMH will have to pay when it begins occupying the property.
The hospital property, which was previously tax-exempt except for the clinic, would go on the tax rolls. A nonprofit 501(c)3 would be set up to operate the residency training program.
SMH will also negotiate with ThedaCare for the purchase of six residential properties adjacent to the hospital that ThedaCare owns.
The agreement places a strict timeline on SMH to get the training center up and running.
If the medical residency program is not in operation within two years of taking control of the property, SMH will have to restore the property for potential redevelopment consistent with the recommendations of a city-ThedaCare task force that considered future uses for the property.
If SMH fails to offer a satisfactory redevelopment of the property within six months of the residency center falling through, it would have to raze the building and restore the property to a “greenfield” condition and transfer ownership to the city, according to the agreement.
Title to the property could also revert back to the city if SMH fails to fulfill any of the obligations of the agreement.
ThedaCare would be absolved of any future costs or responsibilities for the property.
The agreement limits the development group to hospital and clinic uses solely in connection with the residency training program and bars, for at least 10 years, any use as an inpatient hospital, ambulatory surgery center or outpatient clinic.
The training center was one of two proposals discussed in closed session in April by the Common Council, plan commission, industrial and commercial development committee and ThedaCare representatives.
The other proposal was an assisted living facility.
Mayor Lorna Marquardt said the council and the two city committees unanimously endorsed the training center.