The Kenai Peninsula Borough Assembly wants to purchase three properties in Homer to expand the South Peninsula Hospital. Whether or not the purchase goes through will depend on service area voters’ approval of a $13 million bond.
During their most recent meeting on May 21, the assembly approved an ordinance, sponsored by Borough Mayor Peter Micciche, to lease properties at 4251 Hohe Street, 4251 Bartlett Street, and 4201 Bartlett Street in Homer but did so with the intent of moving toward their purchase.
“We’ve talked about this one in a fair bit,” said Assembly Member Peter Ribbens, who chairs the Finance Committee. “This is to provide some additional properties for the South Peninsula Hospital campus. One is currently leased the other two are available, and there are some provisions in this ordinance to allow some flexibility going through the negotiations.”
According to the memo accompanying the ordinance, the sustained lease of these locations would be more costly than owning them outright. “The cost to the Service Area to lease the properties will result in a higher cost over the long term as well as lost opportunity cost that will occur by not owning the properties in fee simple as public assets for SPH campus expansion and revitalization purposes.”
The move comes with the blessing of the South Kenai Peninsula Hospital Service Area Board, which recommended the approval of the lease, appropriation for acquisition due diligence, and an acquisition plan during their regular meeting on Apr. 11.
The purchase would have to be approved by service area voters, but the ordinance memo does state that there is a contingency purchase option if South Peninsula Service Area voters do not approve the anticipated bond proposition.
The properties are currently owned by Prodigy Development, LLC.
