Starke County Park Board Discusses Rent Increase, Clarifications to Bass Lake Beach Lease

Posted on March 17, 2018
Author Michael Gallenberger, WKVI

Members of the Starke County Park Board continue to call for clarifications to the Bass Lake Beach and Campground lease, and that could mean a rent increase for Callahan Development, LLC.

The company has already notified the county that it will exercise its option to renew its lease through April of 2028. But park board member Debbie Mix says there are still some things that need to be resolved. “I don’t think it should just happen without the board giving some kind of final something because some wording has to change, just because they’re not going to be receiving another 10 years,” Mix said during Tuesday’s meeting. “So that portion has to be taken out.”

“No, that doesn’t have to be taken out,” replied County Attorney Marty Lucas. “There was one option to renew. It doesn’t become two options to renew.”

Lucas said that while the park board could propose changes at any time, that doesn’t impact Callahan’s right to renew the lease as it is. Lucas agreed that some clarification would help, though. “There is actually one thing, now that you raise it,” he said. “I think the issue about exactly what the increase in the rent will be is something that we need to sort out with them.”

Up until now, Callahan’s actual rent payment has been significantly reduced, to compensate the company for capital improvements to the property. But what exactly qualifies as a capital improvement as opposed to normal maintenance has been a topic of debate.

Mix thought that should be specified in the lease, but Board President Roger Chaffins wasn’t so sure. “As far as repairs, that unfortunately has to be decided by us, when you do stuff,” Chaffins said. “That’s our decision, and we’d have to work out. I mean, it’s a sad situation, I’m sorry, but we just have to work it out.”

Chaffins did agree that the rent needs to go up, though. Further complicating matters is the ongoing discussion about splitting the Bass Lake Beach and Campground into separate operations, but that conversation is still in early stages.

In the end, board member Rosemary Rose agreed to meet with Callahan’s representatives to discuss a possible rent increase and other issues that may come up. Lucas pointed out that anything they agree upon would then have to go before the full park board for approval.

CHS Responds to Starke Hospital Lease Decision

Posted on September 20, 2016
Author Mary Perren, WKVI

Starke Hospital officials have responded to the county’s abrupt decision to cease negotiations for a new lease of the existing site. The commissioners’ unanimous decision means Tennessee-based Community Health Systems has until Sept. 30 to either renew the current lease for 10 years or exercise the six month notice of non-renewal.

CHS officials released this statement:

“We are disappointed in the decision by the County Commissioners not to move forward with plans at the current location and end lease negotiations. Nonetheless, we will continue to explore alternatives to develop a replacement facility for the residents of Starke County.”

Starke Commissioners Approve Hospital Lease Transfer

Posted onJanuary 27, 2016AuthorMary Perren

 

The soon-to-be new operators of IU Health Starke Hospital now have a signed lease in effect with the county for the facility. The commissioners last night unanimously approved an assignment of lease for the building and the land on which it sits to Knox Hospital Company, LLC. It’s a wholly-owned subsidiary of LaPorte Health Systems, LLC. The assignment of lease is necessary because Tennessee-based Community Health Systems is purchasing 80-percent of the rights to operate the hospital. IU Health will retain the other 20 percent. Starke County Attorney Marty Lucas says such arrangements provide a combination of financial backing and management expertise.

“CHS is asserting it is responsible for the obligation of Knox Hospital, LLC. It has the capability in terms of knowledge of operation, and that you can rely upon that assertion,” Lucas told the commissioners.

The land and building are still owned by the county. CHS has committed to build a $15 million structure between the current hospital building and medical offices within the next five years. Once it’s finished the old building will be torn down and used for parking.

No changes have been made to the lease at this time. Now that it has been transferred to CHS, the county council and commissioners are in a position to consider their request for tax incentives as part of a new land lease arrangement. The current contract expires at the end of September. Hospital and county officials believe a new lease can be worked out before then.