On Tuesday, the Redwood Falls City Council approved a purchase agreement to sell the current Redwood Falls hospital site to developers once Carris Health – Redwood moves to its new facility on the south side of town. The development company, Mankato-based Coldwell Banker Commercial Fisher Group (CBCFG), plans to repurpose most of the hospital into up to 45 two or three bedroom apartments, and possibly some business office space.

The official purchase price for the building and land would be one dollar, but according to Redwood Falls City Administrator Keith Muetzel, renovating the hospital into housing will cost CBCFG “in the millions of dollars.”

As part of the agreement, CBCFG has created what Muetzel called a subsidiary called “Redwood Property Holdings LLC” that will accept the title and be responsible for local affairs. 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.

Muetzel also told the councilors the purchase agreement is only one step in the sale of the current hospital site, with some details still to be worked out. For example, the City would approve a Tax Increment Financing District to assist with redevelopment costs.

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.