RTC development on track

Published 06:00 a.m., February 7, 2010

Demolition of some buildings on the Region Treatment Center property might be the first signs of activity at the abandoned former state hospital this summer.

But rest assured, work is going on feverously behind the scenes to help Campus Development Group realize its vision of turning the campus into a post-secondary learning institution for international students — namely China.

Developers of the RTC project could close on two parcels by the end of March, according to Kent Mattson, an attorney representing the City of Fergus Falls on RTC issues.

Mattson told the Fergus Falls City Council last week that he expects CDG to close on Parcel A (the nurses cottage) and Parcel B (old school district/public health building) by the end of March.

A deal on Parcel D (the main RTC campus and Kirkbride Building) could be signed by the end of the year, Mattson said.

In Dec. 2008 the council authorized the sale of the three RTC land parcels to CDG.

The city last week amended a grant agreement with the State of Minnesota that could result in the demolition of some buildings on the RTC campus as soon as this summer.

The State and City signed an agreement in June 2007 awarding the city a $7.1 million grant to be used for abatement, demolition and basic infrastructure.

Under terms of the original agreement, the $7.1 million was to be used to remove hazardous materials, demolish all or part of the RTC buildings and to construct new water and sewer lines and public streets on the RTC property.

Under the new agreement, curb and gutter, street lights and sidewalks can be installed using the grant money. The agreement has also been amended to more clearly define the RTC facility in order to allow for the closing or removal of tunnels and a water reservoir on the property.

A major part of the amended agreement allows the city to use funds once earmarked only for demolition to be used for site improvements, Mattson said.

The original $7.1 million grant was written under with a “use-or-lose” stipulation and earmarked mostly for demolition. Now, up to $4 million can be diverted from demolition to infrastructure improvements, he said.

Rick Anderson, president of the Campus Development Group, said he is looking forward to closing on parcels A and B. Hawthorne Development of Fargo, a partner in the CDG development, has planned multi-unit housing and condominiums for Parcel A (the nurses cottage). Goldmark-Schlossman Investments of Fargo another CDG partner, has eyed Parcel B (buildings formerly occupied by the Department of Human Services, Fergus Falls School District, Early Childhood Family Education and Catholic Charities) as an office development.

“Both Hawthorne and Schlossman were ready to close on A and B two years ago,” Anderson said.

While closing on parcels A and B will be a major step forward for the RTC development, all eyes are really upon the future of the main State Hospital building and the Kirkbride tower.

Last May Anderson told the city council that the curriculum for an international business college at the Regional Treatment Center was nearly set and discussed the complexity of coordinating a project that involves so many institutions, both American and Chinese.

At the time, planners had spent months trying to balance curriculum content with the cost to students. It is believed that the process is still underway today.

In June 2009 the city council approved amendments to its purchase agreements with the Campus Development Group that would gave CDG until July 1, 2010, to complete the purchase of three major RTC properties. The proposed March closing on parcels A and B would bring part of that deal to fruition three months early.

One provision of the deal assured the city financial assistance from CDG in the case developers needed until Jan. 1, 2011, to complete the transaction.

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