County considers backup plan for Health Department

Calculated risk

"I wanted this as a public forum, to know that this is where we are at with the money. I’m an optimistic guy. I’m not risk adverse, but I take calculated risk and these are the calculations that I am using."”

Garry Seyb, Lee County Supervisor Chair

LEE COUNTY – An option to purchase a building in Keokuk to house the Lee County Health Department was waived at by the Lee County Supervisors Monday morning in Fort Madison.
The option came up as part of a discussion about the health department after several supervisors questioned the county’s ability to fund the proposed $6 million new construction.
The county has been moving forward with plans to build a new health department on property donated to the county by the Glen Meller family. A stipulation in the donation agreement requires that the land be used for the public good and the Meller family name be used in conjunction with any construction on the property.
Lee County Supervisors have roughly $2.4 million set aside for the new construction, that would also include space and bays for EMS ambulances. The county also has a $2.2 million appropriation in front of Congress that was carried to Washington D.C. by U.S. Rep. Mariannette Miller-Meeks (R-IA 1). A $600,000 Community Development Block Grant has been applied for through the Iowa Economic Development Authority, and a North Lee County Community Foundation fund has been set up that Supervisor Chuck Holmes said should be worth between $500,000 and $1 million.
If all those funding streams were to become a reality, the county would have at least $5.7 million in grant and ARPA funds for the new construction, leaving them about $300,000 short.
Supervisor Garry Seyb said the county has also found new investment mechanisms that are generating substantially more interest, close to $100,000/month, that should add to the county’s general fund at the time construction invoices come in.
“We did not anticipate over this next year having an interest payment from the bank going into our general fund of a little more than $100,000 every month. If you figure that at a flat $100,000, that’s $1.2 million that is additional revenue that’s out there.”
Seyb also said there will be additional funds from the speed cameras that are anticipated on the low-end at $1 million to $1.5 million.
“That’s funding that is potentially available -  that’s $2.7 million sitting there. I wanted this as a public forum, to know that this is where we are at with the money. I’m an optimistic guy. I’m not risk adverse, but I take calculated risk and these are the calcuations that I am using,” Seyb said.
“I know that some on the board don’t want to take any risk, zero risk, and I can appreciate that.”
Supervisor Tom Schulz said the county’s request for $2.16 million through Miller-Meek’s appropriations was ranked No. 5 on her list. Seyb said the Congresswoman has had at least her top 10 projects funded the past two years.
The county is also paying $90,000 annually to the Department of Corrections in lease payments for the current Lee County Health Department offices at the John Bennett Center at the former Iowa State Penitentiary.
County grant writer Chuck Vandenberg said the CDBG grant was submitted in April and the review period is typically 30 days. At this point, it is unknown what funding is left in the CDBG’s Community Facility fund, but the next fund commitment will come in August, so funds should be available then.
But Seyb said he wasn’t against discussing a back-up plan which the board said would be to purchase a building in Keokuk, but he stressed that bonding was not on his list of funding sources because the other sources would be exhausted prior to any potential bonding.
“I don’t want the public to think we got this levy passed and we got this other stuff done and now you’re going to throw this bond on top of us to do a project. That is not at all what I’m thinking,” he said.
“We’ve made some pretty strong commitments in Fort Madison with the Meller property, but I also think it’s prudent to have a backup.”
Holmes said the windows and roof leak at the John Bennett Center, a snake was recently found in the building and the county is paying $7,500 per month.
"The building we’re looking at has an occupant and a tenant, and the (current) income would supercede the rate on a CD or other county investment," Holmes said.
“We could save dollars by owning a building and not renting space at John Bennett as well as have a better working atmosphere, the roof and windows wouldn’t leak, and hopefully we wouldn’t find snakes in the building.”
Holmes said the county would have a building to use if the Bennett Center got worse despite the tenants not moving out until summer of 2024.
Supervisor Matt Pflug, who was absent from the meeting Monday, and several county officials have toured the building in Keokuk. A closed session was scheduled for the meeting Monday, but was cancelled due to the discussion around the options.
The property is not listed with a broker and the current owner is interested in selling without a broker.
“The ownership is interested in selling it without a broker fee and they encouraged Matt to have the board make an offer,” Holmes said.
Seyb said the county would need to have a discussion with Carl A. Nelson, the construction manager for the Health Department. The county has already spent $163,000 with Carl A. Nelson for the design of the building.
“We’re going to need to hit the pause button until December. In another five months down the road, we should be very clear on what funding we have,” Seyb said.