Indiana University Health and the city of Bloomington have signed a letter of intent for the city to purchase the site of the current Bloomington Hospital. The $6.5 million deal will take place once the new IU Health Regional Academic Health Center, which will include the new IU Health Bloomington Hospital, is fully operational.
Per the terms of the LOI, IU Health Bloomington Hospital will demolish the facilities on the current hospital site and complete any necessary remediation efforts before turning the site over to the city, which is expected to cost up to $8 million. The two parties intend to sign a binding purchase agreement no later than February 15, which will create a due diligence period through June 1.
"By making this commitment well in advance of IU Health’s relocation, our community has ample time to study options, gather public input and plan for the next use of the land," said Bloomington Mayor John Hamilton. "More opportunities for the public to actively participate in the future of this land will come through the Urban Land Institute planning process. This is an exciting opportunity for Bloomingtonians to thoughtfully reimagine this important location in our city."
Matt Bailey, president of IU Health Bloomington Hospital, says the letter of intent represents the continued working relationship between IU Health and the city.
"Abandoned hospitals in other communities have become liabilities when vacated," said Bailey. "We have served the community for more than 100 years, and it’s extremely important to us to leave a clean site for Bloomington."
In August, the Indiana University Board of Trustees approved the final site plans and exterior design for the 735,000-square-foot Regional Academic Health Center complex. Site work has already begun and IU Health plans to break ground on the facility January 16.