$4.2 Million will revive former hospital

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$4.2 million will help revive former hospital

Plans to redevelop the old Providence hospital site in North Waco took a leap forward this week as the federal government awarded the project a $4.2 million grant.

The U.S. Department of Housing and Urban Development announced it would give the money to Mercy Housing, a Denver-based Catholic charity, which aims to build 55 single bedroom apartments to serve low-income elderly residents. Mercy officials lost out in a previous HUD competition, and they consider the funding crucial to the success of the $8 million project.

“This is the very large and important source of funding,” said Melinda Pollack, project manager with Mercy Housing. “Our experience has been that this is a very competitive process.”

Pollack said she believes the application succeeded because of support from the city of Waco, community leaders and Providence Health Center. Providence is paying $1.8 million to raze and remove asbestos from the old hospital building, and city leaders and Congressman Chet Edwards, D-Waco, have written letters of support.

“It's hard to imagine too many other communities that could demonstrate the level of support we've had in Waco,” Pollack said.

Pollack expects Mercy Housing will start work on the three-story apartment building after the demolition is complete in December, and the apartments could be finished by early 2008.

The apartments would provide discounted rents for residents age 62 and older who earn less than 50 percent of the area's median income. Mercy Housing has built similar housing across the nation, and its typical resident earns about $11,000 a year.

In addition to the $4.2 million for construction, HUD will provide $821,500 in the first five years to subsidize rents, ensuring that residents pay no more than 30 percent of their income for rent.

The federal program prohibits debt financing, so Mercy Housing plans to raise the remaining construction funds through foundation grants. Already it has received a $350,000 grant from Federal Home Loan Banks and $25,000 from the Waco Foundation.

Meanwhile, Mercy Housing is in talks with local nonprofit housing agencies such as Waco Community Development Corporation and Habitat for Humanity about participating in the project. Mercy Housing officials hope that such groups can build 20 houses on the 6.5-acre property.

Mike Stone, executive director of Waco CDC, said he hasn't yet committed to building any houses there but likes the idea.

“I think it's a great idea to have all different kinds of folks living amongst each other,” he said. “I love to see old folks and young folks mixing together. That's a large enough piece of land that it will make a significant impact on the area. This will have a ripple effect in the neighborhood.”

Waco Mayor Virginia DuPuy agreed that the development would have a positive impact.

“We are absolutely thrilled,” she said. “It's going to be a beautiful area and will do a lot for that neighborhood.”

Providence moved its hospital to state Highway 6 near Woodway in 1989, and the building served as Providence's St. Catherine Nursing Center until two years ago.

Providence Health Network president and CEO Kent Keahey said Providence made a commitment to either find a new use for the building or tear it down. With the federal funding in place, Keahey said Mercy Housing will turn the property into a community asset again.

“We really believe this will be a tremendous shot in the arm for the neighborhood,” he said.

By J.B. Smith Tribune-Herald staff writer