Mayor Kelly Proposes State Rebuild Mental Health Hospital Away From Historic Moccasin Bend And At Lower Cost Than State Projected

  • Monday, January 31, 2022

Mayor Tim Kelly is proposing that the state rebuild Moccasin Bend Mental Health Institute away from the historic Moccasin Bend.

He has submitted three alternative sites to the state that he said "would be in closer proximity to the city's medical corridor."

Those sites include by the city's Wellness Center on E. 11th Street, the former Buster Brown property off Dodson Avenue, and the Grace Media site at 1511 Citico Ave.

State officials earlier announced a $276,520,000 plan to replace the current mental health facility. It would utilize federal COVID funds to cover part of the costs.

Mayor Kelly also said the city estimates costs for the project at between $130 million to $200 million.

He stated, "We have identified and analyzed a number of variables that will affect the cost of the development, including: general contract building, site costs, architect/engineering fees, equipment and furniture, contingency, soft costs, land acquisition, and financing costs, inclusive of these costs as well as other costs and contingencies."

The mayor suggested two options for the state to consider: having the state underwrite the full cost on the front end, lease the new facility from the city for a nominal cost and cover maintenance expenses, or it could enter into a long-term lease that would allow the city or the Health, Educational & Housing Facility Board of the city to issue bonds for the project and cover the cost of ongoing maintenance.

He said, "Based on conservative projections, we believe the monthly lease payment would be approximately .56 percent of the total project costs. We have made every effort to be disciplined in our estimates, and final lease payments may be lower."

The city projects building a 175,000 square foot, multi-story behavioral health hospital at $140 million and one with 255,000 square feet at just under $200 million.

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