Monday, June 1, 2015

So how much is a hospital worth?

Posted By on Mon, Jun 1, 2015 at 2:21 PM

click to enlarge The vacant St. Francis Hospital on Pikes Peak Avenue, as seen from the south side. - PAM ZUBECK
  • Pam Zubeck
  • The vacant St. Francis Hospital on Pikes Peak Avenue, as seen from the south side.

Questions raised by anti-tax crusader Douglas Bruce have prompted County Assessor Steve Schleiker to revisit a value assigned to the old St. Francis Hospital.

After the property was sold in early 2014 to 825 East Pikes Peak LLC, an entity controlled by the region's biggest developers David Jenkins and his son Chris, the value was changed to $55,000.

The multi-story hospital has been closed for awhile, and Chris Jenkins has said they plan to revamp the building into residential units.

In an email to us, Schleiker says he's looking into reassessing the property and explains:
In my conversation with Doug, I informed him that the referenced properties in the 02/03/2014 sale have been exempt under Title 32 while Catholic Health Initiative Colorado owned it, and are now 100% taxable as of 01/31/2014. And during this time as an exempt property has been valued as a Best Information Available during the Catholic Health Initiative Colorado ownership. It has been brought to our attention that there are environmental problems with this particular property, and the "cost to cure", which is the estimate of what it will cost to repair or complete the property is estimated to be quite substantial.... Many times when a property owner brings to our attention that their property is below average condition and/or has environmental issues and they are working on bringing it up to code/specs we can verify that information through Regional Building with pulled permits. There are also cases that we set up an appointment and conduct a [field] visit. After our appeals and CBOE period, I am having staff field visit this property.
The property value was changed during the tenure of Mark Lowderman, who served as assessor for eight years before being elected last fall to the office of treasurer. We checked with him on this situation and got this email from him:
Prior to its purchase by Nor'wood, the parcel with the hospital was valued at $1,802,800. After the sale, David Jenkins came to see me with an engineer's report detailing deficiencies with the building. There were some structural concerns as well as a major asbestos problem. If I recall, the "cost to cure" was something above 2.5 million. I did reduce the value based on the purchase price, which was based on the condition of the structure. David told me that they plan to convert the building to high end residential condos. That would require the removal, and encapsulation of the asbestos.

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