by April Scheinoha
Reporter
Plans are moving forward to demolish a portion of the former downtown campus of Sanford Medical Center. At its meeting Tuesday, July 20, the Thief River Falls City Council approved a resolution confirming that demolition is necessary since the deteriorating building causes a health and safety concern.
Sanford Health is planning to demolish a portion of the old hospital as well as the former Convalescent and Nursing Care site. Sanford Behavioral Health is currently located in a remodeled portion of the former hospital and will remain there.
In 2016, the council approved a Tax Increment Financing district for the site. At that time, a developer planned to build 149 apartment units containing a combination of studios, and one-, two- and three-bedroom apartments. However, the project never moved forward, and the TIF district was never certified.
Sanford Health is now requesting tax increment to assist with demolition and cleanup costs for that portion of the site. The cost of demolition and cleanup is estimated to be $3 million.
Even though a developer hasn’t been identified, some preliminary work has been completed on the proposed TIF district. Ehlers, the city’s consultant, has assumed that housing and commercial opportunities will be developed at the site. It is believed an estimated $3 million in tax increment would be available with the city giving priority to demolition and cleanup costs. However, it noted that the final amount would be dependent on final development plans at the site. If the amount were higher than $3 million, the city may consider assisting Sanford Health with costs for public improvements, infrastructure and site improvements. The council is expected to consider the TIF district at its meeting Tuesday, Sept. 21.