Title
Katie Blessing Center
Action
Action:
A. Approve a $2,500,000 allocation from fiscal year 2025 Pay-As-You-Go in support of the Katie Blessing Center’s overall capital campaign to develop a pediatric behavioral health care facility, and
B. Authorize the City Manager or his designee to negotiate, execute, and amend any necessary contracts and agreements to complete the transaction.
Body
Committee Chair:
Victoria Watlington, Housing, Safety and Community Committee
Staff Resource(s):
Shawn Heath, City Manager’s Office
Explanation
§ Katie Blessing Foundation, the non-profit division of StarMed Healthcare, seeks to eliminate barriers to health care access and ensure equitable access to communities with persistent health disparities.
§ The Foundation has committed $20 million to develop an approximately 70,000 square foot pediatric and behavioral health care center in east Charlotte called the Katie Blessing Center (Center) and is currently undertaking a capital campaign seeking public and private funding commitments for the remaining development costs; the estimated total project cost is $63 million.
§ The Center will be North Carolina’s largest and most advanced pediatric health care facility, offering a full continuity of services on one campus. Services will focus on the whole child and include:
- Behavioral health urgent care;
- Acute inpatient hospital;
- Residential treatment facility; and
- Traditional outpatient care, including telehealth and family intervention to support thoughtful transitional care and reduce re-admissions.
§ The Center will be located in the Central Avenue/Albemarle Road Corridor of Opportunity on approximately 3.89 acres at 5516 Central Avenue (parcel identification number 103-021-02) (Property) in Council District 5.
§ The city’s $2.5 million funding allocation will be released contingent upon receipt of a construction permit.
Background
§ On January 23, 2023, City Council approved the market-rate sale of the Property for $2.76 million to Starmount Management, LLC to develop a pediatric and adolescent behavioral health facility. The sale included:
- A right to re-acquire the Property for the purchase price plus three percent per year if Starmount does not begin the process to redevelop the property within three years from the closing date; and
- A commitment from Starmount to a Training Program for paid interns within five years from the closing date, with a minimum of ten individuals hired each year for at least five years; if they are unable to fulfill the training program commitment Starmount will pay the city $170,000.
§ On May 23, 2024, the Housing, Safety & Community Committee voted unanimously to recommend to the full City Council an allocation in the amount of $2.5 million to support the capital campaign of the Center as part of the city’s fiscal year 2025 budget (Council members Watlington, Mayfield, Brown and Johnson voted in favor; Council member Ajmera was absent).
§ On June 10, 2024, City Council received an overview of the project and city investment opportunity at its Action Review meeting.
Fiscal Note
Funding: General Capital Investment Plan
Attachments
Attachment(s)
Map