Baptist: The $2 Million Question

By Addy Ruiz

Will the Escambia County Commission contribute $2 million to the demolition of the closed Baptist Hospital? Should it?

Background: Two years after closing, the old Baptist Hospital still stands abandoned at the corner of E Street and Moreno. On June 5, the Escambia County Commission held a Committee of the Whole to discuss its demolition with Pensacola Mayor D.C. Reeves and his staff.

Points of Concern:

• When completed, the demolition and redevelopment of the hospital would provide low-income housing and healthcare to the underserved area.
• The city decided not to take the lowest bid on the project because of environmental concerns.
• The commissioners questioned their responsibility to contribute General Fund dollars to the project, with Baptist being a private corporation.

Environmental Costs

Erica Grancagnalo, the city’s economic development director, presented the environmental concerns raised during the county’s due diligence period before accepting the property from Baptist Hospital.

• The city received several bids for the demolition and selected North Star’s second-highest bid. When questioned on this decision, Grancagnalo had one answer: “Safety.”

“This isn’t the kind of project that you ask for a low bid on,” she said. “We wanted to make sure the children weren’t breathing in asbestos dust.”

Future Use: After the demolition, the city plans to use the land to develop affordable housing units, retail spaces, and other uses to enhance and strengthen the surrounding neighborhoods. The mix would include senior living and multi-family housing.

Corporate Bailout?

Although he agreed the plan was noble, Commission Chair Mike Kohler questioned whether the county should have any financial responsibility for the project, referring to the situation as a “corporate bailout” for Baptist.

• “Did Baptist ever consider, after the state put in $7 million, paying the difference?” Kohler asked KC Gartman, Baptist’s vice president of external relations.

Gartman responded that the hospital lacked the financial resources to do so.

• Baptist has already committed $5.8 million to the redevelopment project.
• Legislative action by the commissioners a few years ago gave the hospital an additional $14 million annually. Baptist claims this money is being used to offset nearly $61 million in charity care that the hospital provides.

“It would get fenced up and just sit there,” Gartman stated emphasizing what would happen without financial help “and as we’ve learned from other communities, become a source of blight and crime for that area.”

Health Care Returns

Commissioner Lumon May advocated for the project. Recognizing the redevelopment may take a decade or more to complete, he announced a deal he had negotiated with Gartman and Reeves to make two buildings immediately available for healthcare and community outreach.

• “I would think those two properties would be well over the $2 million,” said Commissioner May, alluding to the contribution amount requested of the county. “It’s going to bring a quality of life, give a community hope, and give us the opportunity to demonstrate to citizens that their neighborhood is not being abandoned, and they don’t have to wait forever for services to arrive.”

What Pot of Money?

The commissioners agreed with Mayor Reeves that the redevelopment of the Baptist site would have a positive impact. However, Commissioner Barry and others expressed concern about how to fund the county’s contribution.

• “We owe it to our employees to protect those General Fund dollars,” said Barry, stressing the importance of the General Fund to county operations.

Moving Forward: Mayor Reeves assured the board that he was open to creatively working with county staff to find other sources within the county. The discussion ended positively, with Commissioner Kohler directing staff to bring funding options to the board in July.