St. Joseph’s Hospital in Huntingburg Set for Activity

The Dubois County Free Press reported Wednesday that the St. Joseph Hospital building in Huntingburg will finally see some activity from two developments in the past week.

The hospital filed for bankruptcy soon after it closed in 2007. It was purchased by St. Joseph LLC — a partnership involving Dr. Ijaz Mahmood and three other doctors — in 2010. Dr. Mahmood bought out the partners and formed Huntingburg Partners, LLC in 2012.

Mahmood’s original plan did not include using the entire hospital and he said sharing the expense to maintain the building with Miller-Valentine Group of Cincinnati makes Huntingburg Partners’ project more attractive to investors.

A Cincinnati-based developer plans on creating 45 to 50 senior living units in part of the former-St. Joseph Hospital building and another business signed an option to purchase the empty Medical Arts building on the campus’ south side.

An agreement was finalized on Friday and gives Miller-Valentine the go ahead to purchase approximately 30,000 of the 90,000 square feet of the main hospital.

The purchase is dependent upon the group receiving rental housing tax credits as the primary funding source through the Indiana Housing and Community Development Authority.

The company plans to invest about $9 million to acquire, renovate and add to the northwest wing of the building to create one- to two-bedroom units ranging from 675 to 875 square feet with full amenities.

The first and second floors of the west and north wings will be renovated along with construction of two-story extension to the north side of the existing hospital building.

Both deals were put together with the assistance from Welsh Realty of Jasper.  Owner Andy Welsh said that an unnamed company signed an option Wednesday to purchase the Medical Arts building on 17th Street, which is currently owned by Freedom Bank.

Pete Schwiegeraht is on the agenda to address the Huntingburg City Council at their meeting tonight at 7:30 at the City Hall Council Chambers.

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