Cannon Falls Hospital District dissolves, plans announced for current hospital and clinic building

March 25, 2014

CANNON FALLS, Minn. — The Cannon Falls Hospital District recently voted to dissolve itself effective March 19, 2014.

“We no longer need the hospital district in our community; it has served its purpose,” says Ted Bailey, who has been serving on the Cannon Falls Hospital District board and Mayo Clinic Health System’s Board of Trustees. “The Hospital District existed to operate our community hospital. When we affiliated with Mayo in 2006, we turned the operations over to them. We agreed to transfer all property and tax levy assets if Mayo broke ground on a new medical center by the end of March, 2013.”

Mayo Clinic Health System fulfilled its affiliation agreement. The Cannon Falls Hospital District transferred all property and tax levy assets last spring. Construction of a new 92,000-square-foot medical center in Cannon Falls will be completed in early July, 2014.  The new medical center will open in early August.

The current medical center along West Mill Street will be redeveloped.

“Much like the hospital district, the current clinic and hospital building has served its useful purpose. The building is nearly 60 years old and would require more improvements than any local organization that considered repurposing it could manage,” says Bailey.

Mayo Clinic Health System has been in discussions with the Cannon Falls Economic Development Association (EDA) to help identify what the community needs might be.

“We also engaged the Cannon Falls Housing Initiative in this process.  The redevelopment plan is evolving but currently includes demolition of the existing medical center building and removal of an existing parking lot sometime in 2015 to create a land area for a new neighborhood park and six new dwelling units,” says Bill Priest, administrator at Mayo Clinic Health System in Cannon Falls. “The houses currently owned by Mayo Clinic Health System around the medical center will be sold as they are.”

Once finalized, the redevelopment plan will require City Council approval. If approved, it would likely happen in phases over the next three to four years.

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