Central Health approves 2 ground leases for health clinics in Del Valle area in southeast Travis County

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Update: 10:05 a.m. Oct. 26

Central Health’s ground lease with Travis County Emergency Service District 4 is still under negotiation with the payments subject to change, according to Central Health.

Original post

Residents in and around Del Valle in southeast Travis County may begin to see progress on two long-awaited health clinics.

The board of managers of Travis County’s health care district, Central Health, voted unanimously Oct. 24 to approve two ground leases with Travis County Emergency Service Districts 4 and 11.

The leases

Through the ground lease with ESD 11, Central Health will pay $1 per year to the ESD and sublease the land to the University of Texas School of Nursing, which will operate the clinic at 7300 Kellam Road, Austin, under a 30-year lease with three optional, 10-year extensions, according to a presentation given at the meeting.

ESD 11 and Central Health will first enter a 150-day due diligence period to determine plans for the site including construction, the scope of services provided and the hours of service provided.

Details of the lease require that the land is used for an agreed-upon purpose to provide clinical and non-clinical health-related services.

The ground lease with ESD 4 follows a similar due diligence period and agreed-upon purpose however, Central Health plans to sublease the site to its clinic partner, CommUnityCare.

CommUnityCare clinics are federally-qualified health centers, meaning they receive funds from the federal government in addition to funds from Central Health.

According to the ground lease provisions, Central Health will lease the land, located at 14312 Hunters Bend Road, Austin, from ESD 4 for a total of $2,400 per year for two years with three optional, 1-year extensions.

The clinic at ESD 4 will be a mobile, modular unit and after the lease ends in two to five years, Central Health can move it or sell it, according to Central Health.

Before any construction can begin, Central Health CEO Mike Geeslin will enter into negotiations with the ESDs and the clinic operators to finalize the terms of the leases and sign them.

Editor’s note: this post has been updated for clarity. 

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Emma Whalen
Emma is Community Impact Newspaper's Houston City Hall reporter. Previously, she covered health care and public education in Austin.
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