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VA Conveyance Bill Passes; On Way to Clinton, Miles City Star, October 18, 2000
VA Conveyance Bill Clears First Hurdle but Loses Funds, Miles City Star, August 2, 2000
Commissioners to Accept , Miles City Star, February 22, 2000
Group Tackles Future For VA Site, Miles City Star, August 2, 1999
Community, Gov’t Support Key To Filling VA, Miles City Star, June 10, 1999

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VA Conveyance Bill Passes; On Way to Clinton

By John Halbert, Star Staff Writer

Authorization to convey ownership of the Veterans Affairs Campus in Miles City to Custer County has passed out of Congress and is headed for President Bill Clinton's desk.     

The Custer County Commissioners are not obligated to accept the property, and they have listed certain conditions that must be met before they do. But after the president signs the bill, the commissioners will be able to take it when they see fit.     

In a press release, Sen. Max Baucus, D-Mont., said that during last-minute negotiations, lawmakers included the conveyance in a larger veterans affairs bill. 

According to Baucus aide Liz Ching, the House accepted the Senate version of the veterans affairs bill, so there was no need for a conference committee. That was a major benefit in these crowded final days of the present Congress, as members strive to complete must-do business, she said. 

Originally, that legislation carried a provision appropriating nearly $5 million for the redevelopment and conversion of the building. That money was stripped out in committee. 

But Ching said it has been agreed that the offices of the Montana delegation will start working on that as soon as the present Congress ends. It is hoped that a bill for that appropriation will be ready when the next Congress starts committee work in March. 

A separate part of this year's package is an appropriation of $100,000 for a feasibility study. That is included in another bill for VA and Housing and Urban Development appropriations. 

The conferees on that VA/HUD appropriations bill have not yet been appointed, Ching said. She noted that the situation for any legislation is constantly changing in the press of business. 

"They anticipate that VA/HUD will go through Tuesday or Wednesday," she said. "That was the reading yesterday. But it's day to day." 

That money, Ching said, will expedite and continue the recently started feasibility study, as well as keep open the VA Redevelopment Task Force Project Office.

Sandra Anderson of the VA Redevelopment Task Force said of the 100,000, "The important thing that does is keep us going while we go for the $4.9 million, and to look at the tech center (another proposed use for part of the building) as well." 

"Before, we had such difficult time lines to work with," Anderson said.

"The VA had set the end of their fiscal year, which was the end of September.

  "And due to the progress the task force had made, and the assistance we had from (VA Miles City Manager) Marilyn Frize, the VA understands that this is a serious project and they have released that time line."

"It is in their (VA's) interest to work with Congress," Ching said, "and they have indicated their willingness to do that, and give us the time we need."     

"And what this ends up doing for us," Anderson said, "is to make use of all this good groundwork we've done when we go back for the $4.9 million. We'll have the feasibility study to help us carry that through Congress, well as getting the county commissioners the information they need." 

The conditions the commissioners have stipulated must be met before the county takes over ownership include: the redevelopment appropriation, now estimated at nearly $5 million; an agreement with the VA for its outpatient clinic and long-term nursing home to remain as an anchor tenant for a minimum of five years and consideration of remaining up to 25 years; and the feasibility study's demonstration that the redeveloped complex can be operated cost effectively and not be a drain on county resources, particularly in regard to the abatement of hazardous materials, such as asbestos.

"The county will not accept ownership until the conditions are met," Ching said. "It's still up to them. 

"They want some assurance the building is viable before they accept it, with the specter of the old Holy Rosary Hospital hanging over their head." [Top of page]

VA Conveyance Bill Clears First Hurdle but Loses Funds.  Senators to Angle for $4M Appropriation. 

By John Halbert, Star Staff Writer

The bill to convey the Miles City Veterans Affairs Medical Campus to the Custer County government has passed through its first stage of the process in Congress.

But along the way, the bill lost its authorization for the $4.9 million to retrofit the former 100-bed hospital to new uses with lower maintenance cost, Sen. Max Baucus, D-Mont., told a Miles City audience at the VA auditorium Tuesday.

 In the midst of talking about economic development efforts, Baucus noted that “Here in Miles City, the VA transfer is very, very important.”

 “We did not come up with the $4.9 million authorization,” he added, regarding the action of the Senate Veterans Affairs committee, before which both he and Sen. Conrad Burns, R-Mont., testified in support of Senate bill 2637.  “Under the Senate rules, the Appropriations Committee can appropriate up to $4 million without an authorization.

 “We’re looking for the other $900,000.” 

“I just learned about this a couple days ago.  My experience is, where there’s a will, there’s a way.  I feel it’s appropriate to work for local interests.” 

Later in his remarks before the audience, Baucus praised the VA Redevelopment Task Force.  It’s where the rubber meets the road,” he said.  He added he could not offer a time line on when the Montana delegation might seek funding to go along with the conveyance. 

“Congress is not in session until after Labor Day,” Baucus said.  “The store is closed.”

He set himself a “seek- to two-week benchmark” to start making phone calls to colleagues in the Senate, particularly Sen. Barbara Mikulski, D-Md., and Sen. Christopher Bond, R-Mo., of the Appropriations Committee’s VA & HUD Subcommittee.

Later Tuesday afternoon, in a interview, Baucus aide Liz Ching, who has been Baucus’s liaison to the VA Redevelopment Task Force for the past year, said she had gotten a call from the Veterans Affairs Committee staff with the good news that the bill had been marked up, and the bad news that the authorization had been deleted. 

Ching said that with that action, the will go on to consideration by the full Senate, and most likely by a “unanimous consent” voice vote. 

With time growing short for this session Congress, it is hard to gather senators together, she said, and roll call votes are usually reserved for the big-ticket and controversial items.

“Both sides want it, there’s no objection, and there’s no money in it,” she said.  “I t could go a number of different ways. 

“The hard part will be to find the money,” Ching added, noting that the Custer County Commissioners in May had a sent a letter along with their statement of intent to accept the conveyance which made the appropriation a condition of their acceptance. 

That letter, to each member of the Montana congressional delegation, said in part, “The county could not accept title to the VA Medical Complex if the $4.9 million appropriations legislation does not pass coincidentally with the conveyance legislation.” 

“They were pretty clear,” Ching said, adding that the challenge now is to make a clear case before the VA-HUD Appropriations Subcommittee.

 “We are going to have problems; we knew that going in.  It does create precedents,” she said.  But she added that the congressional recess may actually work in Miles City’s favor.

 “It’s good for Max and Conrad to have some time.  They don’t have that crunch of time that happens when the Senate is in session,” Ching said.

 “And he (Baucus) is going to have to be more passionate about it.  This is probably going to be the last appropriations bill out of the chute.  It’s going to be a battle.”

 “Early October is when Congress is set to adjourn.  September is going to be wild in terms of the amount of work that needs to be done.  So I think our arguments need to focus on why Miles City is unique in the VA system.  If we lose this, we not lose the VA clinic and nursing home, but we’ll be contracting out services and maybe demolishing the building.” 

Baucus, in another interview Tuesday afternoon, also said the Veterans Affairs Committee was concerned about creating precedents that would come back to haunt it. 

“There’s going to be a lot of these around the country,” Baucus said.  “The committee’s not going to take the time to check whether all the conveyances are as well-though-0out as this one

 “Their concern is that there will be a waste of the taxpayers’ money.  They don’t have the time and wherewithal to check into all of them.

  “We have to go back, see if there’s some refinement there.  I have to go back and talk to the committee members, find out the reasons for their thinking and address their concerns.  We need to see what modifications and changes we can make, if that’s necessary.

  “I just have to get more information." [Top of page]

Commissioners To Accept Appropriation For VA Redevelopment

By John Halbert,

With a deadline in Congress looming at the end of business Friday, the Custer County Commissioners have agreed to act as recipients of a federal appropriation to aid the redevelopment of the Veterans Affairs facility in Mile City. 

Dan Connors, the chairman of the commissioners, said Friday morning he would sign the document requesting an appropriation Friday afternoon. 

“If we don’t take responsibility, it (the VA clinic and nursing home) will probably close at the end of the fiscal year,” Connors said. 

The request is for $4.9 million to handle several outstanding remodeling needs, and to provide reserve and depreciation funds for unforeseen problems with capital systems in the 50-year-old building. 

Submitting the request offers no assurance congress will approve it, but not submitting it guarantees that funding option is lost. 

The Veterans Affairs Department operates and outpatient clinic and 30-bed nursing home in about one-third of what once was a 100-bed hospital and ancillary buildings on a 14.5-acre tract. 

The VA has made a commitment to maintain its units for an additional five years as an anchor tenant if a new landlord can be found to take over the care and maintenance of the entire facility.  Otherwise it is likely the VA will find sites with lower overhead costs elsewhere to provide what the VA needs in this region. 

The VA Redevelopment Task Force is a community group that has been trying to find additional uses, tenants and some new form of ownership for the building.  Funding for a feasibility study is being sought, and at least $20,000 for that study seems likely to come from the Economic Development Administration.   

But while that funding and that study are being arranged, a deadline loomed in Congress to apply for appropriations in the next budget. 

Cathy Byron, VA Redevelopment project coordinator, said local organizers were informed of the deadline only last week. 

“This was our only chance to ask for an appropriation, so we have to project for the worst possible scenario,” Byron said late Thursday afternoon.  “We burned the midnight oil for the last eight days.  It’s been intense.” 

The document Byron and other organizers developed requests congress to appropriate $4,965,400 for several purposes, listed in the document as “hazardous materials abatement during remodeling, building system upgrades, development of MCC curricula outlined above, development of a capital reserve fund and a funded depreciation fund, and to bring the buildings and all the systems therein up to codes that apply once the property changes hands. 

What that translates into, Byron said, is a low-pressure boiler system within the main building (to save an extensive amount of money and manpower over the present system), dealing with asbestos and possible lead-based paint while that is being installed, remodeling a portion to meet Miles Community College’s needs and a high-tech distance learning center for several agencies, and reserve funds to deal with as-yet-unknown breakdowns that go beyond ordinary maintenance. 

Byron and Connors both noted that if the feasibility study doesn’t show a way the building can be economically operated, the county has the option of returning the allocation. 

“This is just like saying ‘we’re interested.”  There is no contract until the final acceptance is signed,” Conners said. 

“What the commissioners will be doing,” Bryon said, “they’ve agreed to step up to the plate and they’re saying, ‘We are looking for some solid information, a solid business plan, a marketing strategy and any needs assessments that need to be done – we are looking for all that information to determine if the VA property is a viable proposition for the county to take on this property.’

“It goes without saying that they are going to be very prudent in any decision they make. 

“Kudos to our elected official,” she added.  “Hill’s, Baucus’ and the Burns’ offices all worked with us, and the three county commissioners have now stepped on to that team.  We could never do this without them.” [Top of page]

Group Tackles Future For VA Site. Awaiting VA decision on space, grants to fill community needs. 

By John Halbert

Amid a complex tangle of “ifs” and “maybes” and uncertain time lines, a group has been formed to offer a local voice in the future of the buildings and grounds on the Veterans Affairs Department’s campus in Miles City. 

The VA Hospital Redevelopment Task Force, a group, of nearly 30 people representing a wide range of local and eastern Montana interests, has held a couple of meetings. 

“We are at a crucial point of getting in on the ground floor and looking at what is best for the community rather than reacting after it is done,” said Sandra Anderson, one of the organizers in a press release after the first meeting. 

The group currently plans a two-phase program, according to Cathy Byron, project and community coordinator for the effort. 

Phase I is to get the task force organized, set up a coordinator (Byron), and begin to amass information about alternative uses for the vacated VA space. 

“Determining what uses the community would support and accept is a key to successful completion of this phase,” the release said.  “In Phase I, the task force will also study successful models being used for ownership and management of similar but much smaller projects in Boulder, Anaconda and Forsyth.” 

Byron said about $15,000 in grant money will be sought, which with in-kind services provided as match brings the total to $17,5000. 

Phase II would produce a feasibility study “to determine the best options for matching VA space utilization, needs of the community, and identification of a viable owner/manager entity,” the release said. 

Byron said it is expected that Phase II will cost another $35,000. 

“Understand, that’s a real soft estimate right now,” she said. 

“What we’re trying to do is become organized, and an entity that has credibility, so as it goes through the steps that it takes to transfer ownership, that the local community has a say in the future of the building.”  

Marilyn Frize, manager of the VA Health Care Montana facility in Miles City, is a member of the task force.  She has outlined the VA’s current thinking on the issue, but stressed that no formal decision has been made by the VA that will allow the facility to move from speculation to reality. 

“Our number one goal is to find a new owner for the building,” Frize told the first meeting of the task force. We would lease back the space it takes to continue providing the existing service to our veterans." 

VA Healthcare Montana currently offers an active outpatient clinic in Miles City, and a 30-bed nursing home unit. 

However, Frize stressed in a telephone interview, the VA has not formally determined that the building is excess to its needs. 

Until that is done, the VA remains the owner of the property.  And Frize said there is no time line to reach that decision. 

The issue has been complicated by the Clinton Administration’s recent effort to add $1 billion to the VA medical budget.  How that fares in Congress will make a big difference between ample dollars or a shortage of dollars in local budgets, she said. 

“Until we a get a feel for that, we’re waiting to make our decision,” said “We need to discuss our options; the pros and cons of going forward now or waiting.” 

If the VA decides all or part of the existing buildings are surplus to its needs, then the surplus property reverts to the General Service Administration.   

Frize said that while it may be theoretically possible for the VA to retain ownership and hire a management agency to handle the surplus parts of the facility, “We want to provide healthcare, not manage property,” she said. 

So as soon as the VA declares the property surplus, the GSA takes over, she said.  She has been in contact with Realty Specialist John Robinson of the GSA’s property disposal division in Fort Worth, Texas. 

Robinson is tentatively scheduled to come to Miles City and meet with the task force Aug. 12. 

“The main reason he’s coming out is to go over exactly how the process works with every interested part,” Frize said.  “He wants to make sure we’re not wasting our time going in a direction we shouldn’t be going, and that we understand the legalities of the process.” 

She said he told her there are three tiers to the process.  The surplus property could end up in the hands of another federal agency, it could be transferred a state or local government entity, or it could be sold to a private entity. 

Sharon Kearnes, a member of both the task force and the Miles City Council, reported to the council last week on the results of the first meeting, describing the VA’s position. 

“A lot of it is matching funding to ideas,” she said.  “The major issue is that there needs to be an umbrella landlord. 

“Whoever that agency is should be non-profit so it can go after all the grant money possible.  That’s where we’re log-jammed.” [Top of page]

Community, Gov’t Support Key To Filling VA. Various Interests Brainstorm How To Utilize Unused Portions Of Building. 

By Elaine Swanson, Star Staff Writer 

Finding a use for the empty space in the Veterans Affairs complex will take the community working together and the support of the local governments, according to many speakers at a meeting Wednesday afternoon in the VA auditorium. 

Over 50 community leaders attended the meeting to brainstorm ideas for the VA facility.  Many are concerned about the future of the property due to the situation the former Holy Rosary Hospital is in. 

The VA’s Miles City division manager, Marilyn Frize, said the nursing home and outpatient care utilizes only about half of the main building.  Within the last four months, a real estate agent found renters for all the residences on the property. 

Not being utilized are three floors of the main building, about seven garages, a warehouse measuring about 40,000 square feet and several landscaped acres. 

Frize stressed the VA is not in the real estate business, so the government is interested in someone taking over the property, and the VA would lease back space for their services. 

There will be a lot of red tape, but due to government downsizing, there are many areas facing the same problem and going through the same process, she said. 

“We see this as a community issue …. And we’re interested in your concerns,” she said. 

“We need to get organized and step up to the plate.  The opportunity is here and we need to take advantage of it,” said Sandra Anderson, one of the organizers of the meeting. 

Miles community College President Dr. Bob Bennett said no one group can do this.  “We’re talking partnership. … Collectively we may be able to do something.” 

He said the college needs space like the VA’s to initiate some new programs that could build up MCC’s enrollment, but it needs money to do that.  He anticipates the programs would contribute greatly to the community. 

The college wants to be “a player” in the future of the complex, but it cannot do it alone, he said. 

In a similar situation, consultant Cathy Bryon, Kate Chioutsis of Southeastern Montana Development Corporation and Rosebud County Commissioner Gary Fjelstad explained how the Forsyth community and local governments pulled together to turn an abandoned air force housing unit into a vital part of the community. 

The Air Force built 50 homes in Forsyth and after about 10 years the military pulled out.  Through programs and the help of Sens. Max Baucus’ and Conrad Burns’ offices, the community was able to obtain the homes, repair and maintain them, insure them and find renters. 

The housing unit was filled up ahead of schedule.  The community was able to attract retired couples from outside the area and outside the state and is now beginning to see a profit.   

The people involved in that project offered their help in the VA project. 

Stockman Bank president Lloyd Sohl and MCC Vice President Dale Oberlander both cautioned that in making any plan for the VA, the group needed to be sensitive to the private sector and not simply transfer businesses and organizations from one area of town to the VA property. 

Sohl said the community needs to market the property outside of the area and outside of Montana. 

“We have an excellent facility and an excellent community,” he said. 

The meeting broke up into groups to brainstorm ideas for the property.  Among the ideas were: dorms, office space, minimum-security women’s federal prison, an educational human development center, food bank, chiropractic training, youth program, medical clinic, classrooms, YMCA, regional fire and/or law enforcement training center, long-term retirement facility, small business ventures, communication center, sick-child program, city and county office space, day care facility, conference or convention center, dental hygienist training, alternative high school, veterans services, senior programs, handicap industry, housing, and 24-hour special-needs respite care. 

Liz Ching from Baucus’ office said community priorities and support are what drive the process, and the support of local governments is essential.  

Cheryl Shaffer from Burns’ office suggested the group narrow down their options into a couple of choices and then the senators can help. 

Frize is still collecting information on options and the group will meet again to look further into the feasibility of the VA property and ideas. [Top of page]

 

 

 

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