City wants LSHA land without building new city hall

Although not used as a site to construct a new city hall building, Lake City officials appear to like the variety of options land provided by the Lake Shore Hospital Authority affords the city.
During Monday's Lake City Council meeting, which lasted less than 45 minutes, not only did councilors note how much they like having the additional parcels for parking needs, they unanimously voted in favor of contacting the LSHA to seek an amendment on the agreement so the city could continue to utilize the property.
The LSHA and the city reached an agreement in 2020 where the hospital authority deeded 12 parcels to the city to construct a new city hall building.
Dale Williams, Lake Shore Hospital Authority Executive Director, last January asked that the parcels be returned since the city opted not to build a new city hall building. The agreement contains a clause reverting the parcels to LSHA if they are not used for that purpose within four years.
Councilman Todd Sampson, who requested the discussion regarding the property, suggested Monday the city ask for the modification to the agreement so the parcels could be used as grass parking lots.
“I think that would be very short-sighted on the part of the city,” he said of giving the parcels back to LSHA. He said the space could be used for public focus and local families for parking. “There’s always a need for parking in that area. One of the approved uses of that, in that agreement if you read it, is parking would be acceptable.”
However, City Attorney Todd Kennon, whose firm also works as the attorney for the LSHA, declared he had a conflict of interest in the matter and the LSHA would have to obtain independent legal counsel to address the issue if there was a request for an addendum.
Kennon later explained that though he was not speaking on behalf of the LSHA, he did not believe the interpretation Sampson was using regarding property was the intent of the agreement.
The 2020 interlocal agreement listed parking as one of the potential public uses for the property in addition to building a new city hall and potential county administrative facilities.
“I must respectfully disagree with Mr. Sampson,” he said. “The contract and the intent was to provide the lots for the city to build a new city hall and the public purposes after that are incidental to that,” he said. “I believe that it will be the hospital authority’s position, and again I’m not speaking for them, but we have four years to make a decision and I believe that will be their interpretation that they granted us the lots in total to allow for a new city hall. Any other incidental buildings that were necessary that were part of city hall and utilization of the balance of the property for public purposes such as parking.”
Sampson noted the agreement’s clause regarding constructing a government building and suggested seeking an amendment to remove the agreement’s literature requiring the building construction and then the city could move forward by putting in grass parking and headers, a lunch bench or some kind of concrete area to sit on the property.
Fellow Councilman Jake Hill Jr., who noted the parking area was beneficial to the city for parking at the recent barbecue cooking competition, and Mayor Stephen Witt both agreed the property offered additional downtown parking.
“I think this would be short-sighted to allow this to go back to the hospital authority, especially since it’s dedicated for public purpose that all citizens in the city and the county could benefit from,” Sampson said.
The LSHA board would have to agree to the amendment, both Kennon and Sampson noted.
Kennon suggested the modification including language specifying whether the city wanted to use all 12 parcels or just a some of the property for parking.
The suggestion to seek a modification/amendment to the agreement was unanimously approved.