The Newton Board of Aldermen took steps in their pursuit of a buyer for the former Pioneer Community Hospital at their regular meeting Tuesday, Dec. 5.
Board Attorney Robert Logan informed the board that the property’s accumulating tax liens are making it less attractive to potential buyers.
“One of the problems is that it’s assessed for between $5-6 million, and the taxes for the city, county and school district are amounted to $120,000 a year,” Logan said. “It’s gotten to the point where nobody wants to come in and bid on it.”
The taxes have added up for the past two years after the hospital was closed in December 2015, and the property has been sold for at tax sales each year. Bennett Tax Company acquired the property at a tax sale, but Logan said the company is suing Newton County to set aside the sale and recoup the costs.
Logan said that if the property isn’t sold, it could be acquired by the state and the city would not receive any compensation.
The hospital was closed in 2015 after the Centers for Medicare and Medicaid Services changed its interpretation of critical access hospitals, stating that a critical access hospital cannot be located within 35 miles of another hospital by primary roads. Hospitals in Forest and Meridian were both within the window.
Instead of changing to a not-for-profit, prospective payment systems hospital, Magee-based Pioneer Health Services chose to close the hospital.
Under Logan’s recommendation, the board voted to ask the county’s tax assessor’s office to reappraise the property to lower the taxes.
At the time of its closing, the hospital had $315,797 in unpaid property taxes plus penalties and interest.
In other business, the board discussed the possibility of adding to the city’s noise ordinance.
Logan said a similar ordinance that was installed by the city of Biloxi was voided by the state Supreme Court for having vague language about what noises the ordinance would cover and how it would be enforced.
Logan suggested using a disturbing the peace ordinance because it would have a better chance of holding up upon closer inspection by the state Supreme Court.
Logan and Police Chief Harvey Curry said that if the city goes with a disturbing the peace ordinance, residents will have to file a report if officers don’t catch the offender in the act.
After a lengthy discussion, the board agreed to have Logan look at a similar ordinance in Meridian for comparison and see if Newton’s ordinance needed changing.
In other business, Doug Whittle, president of the Newton County BankFirst branches, presented a proposal for the loan for the construction of the rail spur project for the Biewer Lumber Sawmill. The amount of the loan will not exceed $1.05 million.
Whittle said he will have an interest rate and commitment letter to the board before the next meeting on Dec. 21.
The board also discussed the city’s Certified Local Government board’s need for three members. The board must be fully staffed in order for the city to receive grants from the Mississippi Department of Archives and History.
The board approved appointing Emily Pugh, the Newton Chamber of Commerce Director, to the board, but two more seats remain unfilled.
Mayor’s Youth Council Director Eva McDonald also updated the board on the recent activities of the Council. The 10-member council held its annual social on Saturday to recruit new members.
