The Redwood Falls City Council on Tuesday unanimously approved moving forward with a tentative plan to sell the Redwood Area Hospital building once Carris Health – Redwood moves to its new facility on the south side of town.
Mankato-based Coldwell Banker Commercial Fisher Group (CBCFG) presented the preliminary plan and a letter of intent to purchase and redevelop the hospital building to the council. David Schooff, President, Broker and Co-Owner of CBCFG, stated,“Recently, our team has sought out projects in regional centers like Redwood Falls to fill gaps in the marketplace, specifically housing. After touring the facility, we were impressed with the condition of the property.”
Schooff, along with partners in construction, design and property management, are putting together a few scenarios for repurposing the building, including for multi-family housing, and space for office and retail.
The proposed deal includes all the current hospital property with the exception of the Season’s hospice house, a separate parcel for which the city has a 10 year lease with Carris Health. The project’s timeline will coordinate with the transition of the hospital’s move to the new site late spring of 2021.
The significant terms of the Letter of Intent include: the City would transfer ownership of the building to Northwest Development Group, LLC for one dollar. The City would approve a Tax Increment Financing District to assist with redevelopment costs, and the transfer of ownership would tentatively occur on or before Jun 30, 2021. In addition, the City would agree to exclusive negotiations with Northwest Development Group, LLC for a 30-day period.
While headquartered in Mankato, the CBCFG group has projects spanning Southern Minnesota, including the south metro. Most recently, the group is started a redevelopment of the former Skyline Mall in Albert Lea, the Valley Green Mall in Le Sueur, and has done significant work on the Madison East Center in Mankato, including a 15,000 square foot addition.
Redwood Falls Mayor Tom Quackenbush stated, “The opportunity to re-purpose this asset is a tremendous win-win for our community. This speaks to how well the facility has been maintained and improved over the years. To have this building continue to have value and serve needs in the community going forward is fantastic. We look forward to working with the Fischer Group to see this through.”