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CELINA - City councilors on Monday night voted down an ordinance to rezone a 1-acre property from manufacturing to community shopping, preventing Cincinnati-based Bon Secours Mercy Health from building an urgent care center at 1800 Industrial Drive.
Councilors Myron Buxton, Joe Wolfe, Thomas Sanford and Eric Clausen all voted against the legislation after it was brought back to the table, citing deed restrictions imposed by Mercy Health, limited manufacturing-zoned land and other reasons.
At the Oct. 14 meeting, council voted 3-2 to table the legislation after Mercer Health Chief Financial Officer Jon Dingledine drew attention to what he said was a document outlining Mercy Health's restrictive covenants "on the remaining land that is for sale on Havemann Road."
Mercer Health CEO Lisa Klenke and Grand Lake Health System President and CEO Cynthia Berning have both said a new urgent care center in Celina could hurt local health care providers.
According to the document emailed to councilors, for either 30 years after the recording date of the agreement or the time period during which Mercy Health owns or possesses an interest in any real estate that is within a 25-mile radius of the remainder parcel, no portion of the remainder parcel shall be used for any healthcare services without the prior written consent of Mercy Health.
Michael Johnston, senior development manager for Bon Secours Mercy Health, had reputed Dingledine's interpretation of the restrictive covenant, saying it only applies to the 1-acre of property it plans to buy from JES Enterprises of Celina, not any adjourning properties.
However, in response to a question from Wolfe, Johnston on Monday night clarified that a deed restriction included as part of a purchase and sale agreement (PSA) with JES Enterprises would apply to the 1-acre property Mercy Health intends to purchase as well as the six adjoining acres zoned M2 light manufacturing district.
"Thinking on the fly, I did misspeak at the last meeting," Johnston said. "The restrictions apply to the 1 acre and the 6 remainder of the JES foods with the restriction being no direct medical competition or any of the other things outlined - alcohol, sales, anything that goes against our religious directives, as we see."
Johnston said Bon Secours Mercy Health in the past has rolled back such restrictions on some of its properties once it vacated them. Also, the application of restrictions is case specific, he added.
"I understand in this application it might … come across a little funny that we are restricting land, but again there are 6 acres next to us and JES could contract with Mercer (Health) tomorrow," he said. "Mercer could put in an urgent care right next to us. Would it make practical sense for either entity to do that? Probably not, but they could. So we are just proactive in the stance that we'd like to not have that right next to us, among the other things listed in there."
Clausen said his concern is that the city has a zoning restriction on the property and Mercy Health wants to add its own restriction.
"You're petitioning us to release that restriction so you can buy the property … but then you want to add a restriction to it," Clausen said. "I guess that's a little confusing to me that you want to restrict something that you're asking us to unrestrict so you can buy the property."
Johnston replied that as it stands today there are two properties for sale with a commercial designation, "the old Lakefront Grill and the 1-acre of the … 7 acres that we are purchasing."
"Those are the two properties for sale that could be purchased. There is one exception. There's a 1-acre tract just down the street from the Industrial Drive property, right at the front door of the Galleria. With some recent announcements, we decided that might not be the best business move," he said.
Mercer Health officials last week announced plans to purchase the Grand Lake Galleria Conference Center in Celina for $3 million.
Councilman Mark Fleck also noted that council at the last meeting had requested that the entire PSA be brought forth for review. The PSA was not provided to either councilors or city law director George Moore.
"We were a little caught off guard at the last meeting that that language had been introduced before council," Johnston said in reference to the document cited by Dingledine. "Typically in our experience, agreements between two private entities are not germane to a rezoning."
After talking with legal counsel and other internal figures, Johnston said it was decided not to hand over the PSA, which contains business terms and other details outlining how Mercy Health runs its business.
"We're going to leave that between us and JES Foods at this time," he said. "You have the language of the restriction. It's been introduced so that should really only be the applicable thing."
Councilman Eric Baltzell asked if it's been common practice to ask for a PSA to review deed restrictions in zoning reclassifications made by the city.
"In past zoning reclassifications, that's never been a discussion topic?" he asked.
"No, it has not," mayor Jeff Hazel said.
"So we had no knowledge in previous zoning reclassifications if there were deed restrictions?" Baltzell asked.
"That is correct," Hazel said before adding "I think the only one that we did hear about was with Bob Evans building because it had been vacant for a long time. When Bob Evans closed down and built new, we worked with it and then we found out … there was a 40-year deed restriction."
The restriction, he said, prevented restaurants that would compete against Bob Evans.
Baltzell made a motion to untable the legislation, which was seconded by councilman Matt Gray. The actual vote to untable was 3-3-1, forcing council president Jason King to cast a tie-breaking vote. King voted to untable the legislation.
On its final reading, the legislation was defeated 2-4-1. Baltzell and Gray voted yes, while Fleck, a Mercer Health employee, abstained.
Plans had called for a 4,200-square-foot Bon Secours Mercy Health urgent care facility in the bustling Havemann Road commercial sector, with eight exam rooms and X-ray and lab services that would treat about 30 patients a day, according to Johnston.
Asked by the newspaper after the meeting, Johnston said he had no comment on council's actions. He also had no comment when asked what Mercy Health's next move may be and whether it would consider court action against council.
Council meets next at 7 p.m. Nov. 11 in council chambers.
