A local nonprofit organization that hopes to open a 24-hour clearing house for people seeking drug and alcohol rehabilitation treatment is becoming a thorn in the side of Indian River Hospital District trustees.
The group, Thrive, wants to open its facility in buildings owned by the hospital district, but does not have the money to buy the buildings at the present time. Thrive leaders told district staff that the group needs three years of rent abatement before purchasing the real estate, but some of the trustees want a quicker sale.
District trustees picked Thrive as the best candidate to open a rehab facility in their buildings because they believe the group would offer a valuable service needed by the community, but they are growing impatient.
The district paid $4 million for the land and two buildings at 620 and 650 10th Street 15 months ago with the idea of opening a sober home for women, but they made the purchase before developing a business plan or contracting with an operator.
Taxpayer dollars have since paid to refurbish the abandoned property and continue to pay for ongoing maintenance, utilities and security while the district figures out what to do with it.
Trustees analyzed various proposals and selected Thrive as the best fit for the community’s needs, but the district wants to sell the property to Thrive outright rather than be its landlord.
Thrive would use the buildings for two purposes – as a ’round-the-clock first stop for anyone needing detox services or a stay in rehab, with Thrive staff working to find a place for those people to go, and also as a “respite housing” facility for local residents with substance abuse disorders.
Frank Isele, Hospital District executive director, told trustees in a memo that, “Trustee [Karen] Deigl and I met with Carrie Lester and members of the Thrive team to check in on their progress and explore the possibility of Thrive purchasing the property sooner rather than later. Thrive has since explored commercial financing options and has been advised that they would likely be able to borrow about $1.85M at this time.”
The district estimates taxpayers now have approximately $4.2 million sunk into the property with renovations, landscaping, lighting, maintenance and the new security system installed after the property was burglarized.
But the district’s real estate broker believes the property is worth somewhere between $4.7 million and $5.2 million in today’s market. Selling in that range would net the district a profit and get it out of the drug and alcohol rehab business.
When the district purchased the property, there was a deed restriction limiting its use to an orphanage or group home for children, which is what the Children’s Home Society used the buildings for before moving out and selling to an Orlando investor.
The district got that restriction removed early, which increased the value of the property compared to what they paid. The idea of the district financing the property came up at last month’s meeting, but trustees expressed little interest in getting into the mortgage-lending business.
Former hospital district chair Mary Beth Cunningham urged trustees to make a decision, one way or the other, so Thrive knows how to proceed.
But trustee Paul Westcott told Cunningham, “I’m not going to rush this decision. We kind of rushed the decision to buy a property that’s not zoned for what we wanted to use it for. I’m not going to replicate the mistake by being rushed.”
