Central Health to pursue buying and redeveloping property for new administrative home

The Central Health board of managers approved a motion to allow President and CEO Mike Geeslin to negotiate and execute a real estate deal to acquire property to be used for administrative and clinical space. Currently, administration works exclusively out of its office on East Cesar Chavez Street, pictured here. (Iain Oldman/Community Impact Newspaper)
The Central Health board of managers approved a motion to allow President and CEO Mike Geeslin to negotiate and execute a real estate deal to acquire property to be used for administrative and clinical space. Currently, administration works exclusively out of its office on East Cesar Chavez Street, pictured here. (Iain Oldman/Community Impact Newspaper)

The Central Health board of managers approved a motion to allow President and CEO Mike Geeslin to negotiate and execute a real estate deal to acquire property to be used for administrative and clinical space. Currently, administration works exclusively out of its office on East Cesar Chavez Street, pictured here. (Iain Oldman/Community Impact Newspaper)

Central Health is looking for a new home for its administrative staff.

At its March 31 meeting, the Central Health board of managers approved a motion to allow President and CEO Mike Geeslin to negotiate and execute a real estate deal to acquire property to be used for administrative and clinical space.

Though Jeff Knodel, Central Health vice president and chief financial officer, said staff was looking at an ideal property, no specific location was named in public session. One stipulation of the motion, however, is that the property is located in Central Austin, similar to Central Health’s current headquarters on East Cesar Chavez Street.

“Some of the benefits that we’re looking to address are not only administrative savings, but we’ve identified a site that offers us the opportunity to provide multiple clinical services,” Knodel said.

After Geeslin negotiates and executes a deal for the new property, Central Health will issue certificates of obligation in order to fund the acquisition and renovation of the future space. The health care district will first need approval from the Travis County Commissioners Court to purchase the property.


According to a timeline presented to the board March 31, Central Health expects to come to a purchase agreement by mid-April and go to the Commissioners Court for approval at its April 30 meeting. The transaction would be finalized by May 15.

The purchase and renovation of the new property would add approximately $5.2 million annually to Central Health’s debt service budget, according to a financial analysis presentation by Knodel. That debt service would translate to a Central Health property tax bill increase of $8.65 for the average Travis County homestead worth $355,379, according to Knodel’s presentation.

The financial analysis presented March 31 shows an overall saving of funds down the line, however. Knodel told managers that the cost of renting its administrative space would outpace the price of building and maintaining its own property by the 12th year of ownership.

“If you look at it from an aggregate standpoint, you see the actual build and real estate renovation begins leveling off,” Knodel said. “Any savings to Central Health provides resources [for us] to provide additional health care.”
By Iain Oldman
Iain Oldman joined Community Impact Newspaper in 2017 after spending two years in Pittsburgh, Pa., where he covered Pittsburgh City Council. His byline has appeared in PublicSource, WESA-FM and Scranton-Times Tribune. Iain worked as the reporter for Community Impact Newspaper's flagship Round Rock/Pflugerville/Hutto edition and is now working as the editor for the Northwest Austin edition.


MOST RECENT

COVID-19 precautions such as a masking requirement remain in place at Austin-Bergstrom International Airport. (Courtesy Austin-Bergstrom International Airport)
'Signs of hope' on the horizon at Austin-Bergstrom International Airport after year-plus dip in air travel

Rising passenger counts, new airline operations and an increase in vaccinations could all support the airport's recovery in 2021.

Here are the most recent coronavirus updates from Williamson County. (Community Impact staff)
Williamson County adds 129 new COVID-19 cases between May 10-12

Here are the most recent coronavirus updates from Williamson County.

Capital Metro bus
Capital Metro announces increased transit services for Austin FC games this season

Capital Metro has increased the frequency of several bus routes for Austin FC game days at Q2 Stadium.

Dell Children's Medical Center North campus groundbreaking
Ascension Texas breaks ground on first children’s hospital in Williamson County

The 187,000-square-foot, four-story hospital is scheduled to open in November 2022 with 36 beds dedicated to emergency pediatric care.

masks
CDC ends all mask requirements for fully vaccinated people

The guidance states fully vaccinated people do not need to wear masks indoors or outdoors.

The property has been a redevelopment and neighborhood revitalization target for years. (Ben Thompson/Community Impact Newspaper)
Austin evaluating 6 plans to redevelop 19-acre St. John site into mixed-use district

The city has long been seeking to rejuvenate the St. John neighborhood property off I-35 with new housing, retail and recreational space.

Students at Norman-Sims Elementary School and Austin ISD's 124 other schools across the district will now be allowed to remove masks during outdoor physical activities with the permission of a parent or guardian. (Jack Flagler/Community Impact Newspaper)
Austin ISD makes outdoor masking optional, eases other health, safety restrictions

Students engaging in outdoor physical activity will now have the option to remove masks.

Regal Arbor at Great Hills
Regal Arbor at Great Hills in Northwest Austin to resume screenings May 14

The Northwest Austin movie theatre will reopen to moviegoers with screenings of eight films this weekend.

House Bill 1024, signed into law May 12, allows restaurants and bars to permanently sell alcoholic beverages to-go. (Courtesy Pexels)
Cocktails to-go are here to stay in Texas: Gov. Greg Abbott signs change into law May 12

Supporters say the change will help restaurants continue to recover from the economic effects of the coronavirus pandemic.

Chili’s Grill & Bar sign
Chili's Grill & Bar opens newest Austin restaurant in Four Points area

This Chili’s location offers curbside pickup service, delivery through Doordash and alcohol to go.