Officials with Harrison Medical Center have signed off on a purchase-and-sale agreement for the city of Bainbridge Island to purchase its medical clinic building on Bainbridge.
The city is planning to convert the building into a new police station and municipal court to replace the aging police facility on Winslow Way. The city’s municipal court is currently housed in a leased building in Rolling Bay.
The city signed a “letter of intent” with Harrison Medical Center for the building and the 3.3-acre property on Jan. 29. The city will pay $8.975 million in cash for the property upon closing of the deal.
Last week, officials with Harrison Medical Center signed a 21-page agreement to sell the building that houses its urgent care facility on Bainbridge.
The purchase-and-sale agreement was signed March 13 by Ketul Patel, CEO of CHI Franciscan; and Mike Fitzgerald, CFO of CHI Franciscan.
The city council is expected to vote on the agreement at its meeting Tuesday, March 26.
The land at 8804 Madison Ave. was purchased by CHI Franciscan in August 2013 for $1.75 million and the medical center building was built in 2014. The Harrison Bainbridge Urgent Care building is 17,548 square feet in size.
The property has a current market value of $2.6 million, according to the Kitsap County Assessor’s Office.
Three appraisals of the property have been conducted since last June; two by the city and one by Harrison Medical Center. None of the appraisals have been released publicly.
According to the purchase-and-sale agreement, the city will conduct a “feasibility study” on the property on (or before) 60 days from the effective date of the agreement. The city will have the right to extend the feasibility study period by 15 days by giving written notice to the seller.
The city will also have the right to terminate the agreement if the city determines the property will not be suitable for a police station/municipal court.
The “as-is” purchase requires the approval of the city council, and the agreement notes the buyer can cancel the agreement if the council does not complete the sale by April 30.
The agreement also notes that CHI Franciscan “will diligently pursue the permits with the city of Bainbridge Island for and the construction of premises in which to relocate its medical practice.”
