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Haywood to buy old Wal-Mart to replace aging DSS, Health Department buildings

Year after year, Haywood County commissioners recognized the social service and health department buildings were falling apart.

Yet they passed the buck, hoping the next set of fresh-faced commissioners would tackle the lingering issue.

Last week, county commissioners got over a bad case of procrastination and took action.

On Wednesday, Jan. 13, commissioners voted unanimously to buy the old Wal-Mart near Lake Junaluska and renovate the space to house more than 200 employees who have been putting up with leaky roofs, frozen pipes and crammed office space.

County leaders have been deliberating for more than a year on how to handle the crumbling DSS facility. The latest session lasted for nearly five hours, as presentations and comments from all sides were heard for the final time.

The county is not revealing how much it’ll pay Georgia-based RCG Ventures for the property, but its initial estimates place the total cost of the project somewhere between $12 and $12.5 million. The county will shell out about $6.6 million for the property alone.

Commissioners felt especially pressured to move forward knowing the state could yank 65 percent of DSS’s funds if it continued to flunk state standards. While the state pays for the cost of social programs and a portion of social workers salaries, counties are responsible for providing a building for them to work in.

Facility inspections landed the Haywood County’s DSS building in the bottom 1 percent of more than 70 DSS facilities across the state.

Three options presented themselves to the board: renovate the building, parts of which date to 80 years ago; build a new facility; or move offices to the abandoned Wal-Mart.

It would cost roughly $6.1 million to renovate the DSS and health department buildings, according to Dale Burris, Haywood’s director of facilities and maintenance.

Purchasing land and starting again from scratch would cost county taxpayers $25 to $30 million.

Two architectural firms independently ruled out renovation as a viable option — the cost of renovating would likely exceed the price of buying another facility.

County Manager David Cotton pointed out the crumbling structure lacked flexibility and had inherent design flaws due to its age.

Cotton said he wanted to make it “crystal clear” that all counties are mandated to provide adequate services, and that Haywood had to take action.

With the three options in front of them, commissioners felt strongly that the best solution was to occupy the abandoned Wal-Mart.

“To me, there’s no choice there,” said Commissioner Mark Swanger. “Seems quite obvious.”

Commissioner Bill Upton emphasized that the timing was crucial for making a decision.

“I don’t see this opportunity coming this way again,” said Upton. “We just got one shot, and that’s it.”

While a group of eight citizens came to the meeting to oppose the purchase, citing the need to save taxpayer dollars, the commissioners were adamant about finally moving on the deal.

Jonnie Cure said she didn’t buy the argument that the county must spend more to save in the long run.

“It just doesn’t make sense to any of us,” said Cure. “Your mathematics, it ends up being fuzzy math where you can twist the facts and you can prove whatever you want to prove to us.”

On the other hand, the directors of DSS and the health department came to the commissioners to plead their case and demonstrate a dire need for change.

They shared a slideshow of images to vividly illustrate the deteriorating conditions of facilities, revealing peeling paint, water leaks, hanging wires, and windows that are permanently stuck open. Some clients have gotten stuck in the DSS building’s aging elevator.

“These are the reasons, the real reasons why we need to do something,” said Ira Dove, director of DSS.

Over at the health department, the two reigning concerns were adequate space and confidentiality.

Health department workers have had to use a garbage can to collect water leaking from the ceiling and surround cabinets with small heaters to prevent pipes from freezing.

Health Director Carmine Rocco said the health department could not continue operate the same way year after year, hoping for its needs to be addressed. Rocco applauded the commissioners for their forward thinking approach.

 

What now?

Haywood will attempt to lock in a low-interest federal loan from the U.S. Department of Agriculture to purchase and retrofit the old Wal-Mart. The county is optimistic about the prospect, as the USDA is now flush with stimulus funds.

Citizen Randy Burress remained unconvinced and said placing all hopes on stimulus money was a “bad joke.”

“All this sunshine and lollipops, you’re still talking about our money,” said Burress. “We can’t stand any more taxes. We don’t need any more taxes, period.”

While commissioners hope they won’t have to raise taxes, they admit the loan could lead to a half-cent increase in the tax rate in 2012.

If Haywood does score the 40-year loan for $12.5 million, it would result in initial loan payments of $260,000 each year. The county may need to borrow less depending on how much it will cost to retrofit the inside of Wal-Mart. Estimates are still pending.

If the county cannot obtain the USDA loan, it would take out a conventional loan and possibly sell county property to raise funds.

The loan process could take up to six months, according to Assistant County Manager Marty Stamey.

A few weeks ago, the county put out a request for bids from local architects. The USDA requires an architect’s project estimate to be included with the loan application.

Stamey said the commissioners will likely make a decision on an architectural firm no later than the second meeting in February.

Meanwhile, the county hopes to put “for sale” signs on some of its other properties. Selling the existing DSS building and health department would add to the county’s property tax base and possibly spur commercial development and sales tax.

Stamey said the county would have to take the long list of structural problems into account when setting the price for the DSS building and handing it off to the next owner.

A potential buyer interested in converting the facility into housing for the elderly has already approached the county.

But considering the recession, Stamey confessed it may be difficult to unload some of the other properties off the county’s hands.

“Some of the property, we may need to keep,” said Stamey.

Close-up of a crumbling facility

Fire code violations, compromised client confidentiality, leaking roofs, freezing pipes, lack of energy efficiency, severely limited space, windows that won’t close...

The problems with the current DSS and health department facilities would take pages to list.

And the issues have not escaped unnoticed by the 12,000 residents — 20 percent of the Haywood County population — receiving services at DSS and nearly 10,000 residents regularly making their way to the health department each year.

Whether it’s the client whose confidential health information is heard by everyone nearby or those who routinely get stuck in ancient elevators, these flaws are no secret.

That’s especially the case now that the worsened economy has lead to increased usage of these county services.

Ira Dove, director of social services, asked commissioners last week if they would want to work in such a building or feel safe having their mother riding its broken-down elevator.

The current DSS building, located on the Old Asheville Highway between downtown and the roundabout, was originally a county hospital built in 1927. The portion that the DSS uses was added on in 1950.

Meanwhile the health department, found a mile further down the Old Asheville Highway across from Junaluska Elementary, is housed in a 54-year-old building.

Both facilities have difficulty keeping up with modern technology due to when they were built.

“Back when there was no computer — only typewriters,” said Dale Burris, the county’s facilities maintenance director.

Most commissioners have visited the facility and have found they could easily justify the need for action to taxpayers.

“I’d like to invite the public to come out and see that facility out there,” said Commissioner Skeeter Curtis.

The challenges of renovating the DSS building are many. An extensive renovation would be necessary. It would involve stripping down the interior to its structural skeleton and reworking the space to create efficiency.

DSS has no need for the old hospital’s wide corridors. And the old patient rooms are too big for one social service worker, yet too small for two.

Architects estimate the staff would have to be moved for an entire year as renovation took place.

The county would also face the added expense of dealing with the structure’s asbestos and lead-based paint issues.

The low ceilings would present major challenges for installing modern heating, venting and air conditioning.

An additional 15,000 to 20,000 square feet of space would be required to comply with state requirements.

The health department has insufficient parking for clients, especially during times of mass vaccinations, like flu shots.

“I think this is a lesson that all of us should learn,” said Curtis. “The better you take care of your facilities and your belongings, the better off you’re going to be in the long run.”

Commissioners commit to former Wal-Mart site

After a marathon five hours of discussion on Wednesday (Jan. 13), Haywood County commissioners voted unanimously to buy the abandoned Wal-Mart shopping center near Lake Junaluska and retrofit the space to house the Department of Social Services and health department. Commissioners have been deliberating for more than a year on how to handle the crumbling DSS facility.

Three options presented themselves to the board: renovate the building, parts of which were built 80 years ago; build a new facility; or move offices to the renovated Wal-Mart. It would cost roughly $6.1 million to renovate the DSS and health department buildings, according to Dale Burris, Haywood’s director of facilities and maintenance.

However, County Manager David Cotton said the buildings “lack flexibility” for necessary renovations and upfits due to inherent design flaws.

Purchasing property and starting again from scratch would cost county taxpayers $25 to $30 million, according to research by the county and two architecture firms. Meanwhile, the county claims it could potentially save more than $12 million by taking over the old Wal-Mart.

“To me, there’s no choice there,” said Commissioner Mark Swanger. “Seems quite obvious."

Commissioner Bill Upton emphasized that the timing was crucial for making a decision.

“I don’t see this opportunity coming this way again,” said Upton. “We just got one shot, and that’s it.”

Commissioners felt especially pressured to move forward, knowing the state could yank 65 percent of DSS’s funds if it continued to flunk state standards. For now, the DSS building ranks in the bottom 1 percent of the state.

Haywood hopes to lock in a federal stimulus loan from the U.S. Department of Agriculture to purchase and retrofit the old Wal-Mart. That loan would result in $260,000 of annual debt service payments for 40 years and could possibly lead to a half-cent increase in the tax rate.

While a group of eight citizens came to the meeting to oppose the purchase, citing the need to save taxpayer dollars, the commissioners were adamant about finally moving on the deal.

Johnnie Cure said she didn’t buy the argument that the county must spend more to save in the long run. “It just doesn’t make sense to any of us,” said Cure. “Your mathematics, it ends up being fuzzy math where you can twist the facts and you can prove whatever you want to prove to us.”

On the other hand, the directors of DSS and health department came to the commissioners to plead their case and demonstrate a dire need for change.

They shared a slideshow of images to vividly illustrate the deteriorating conditions of facilities, revealing peeling paint, water leaks, hanging wires, and windows that are permanently stuck open. Some clients have routinely gotten stuck in the DSS building’s aging elevator.

“These are the reasons, the real reasons why we need to do something,” said Ira Dove, director of DSS.

Over at the health department, the two reigning concerns were adequate space and confidentiality.

Health department workers have had to use a garbage can to collect water leaking from the ceiling and surround cabinets with small heaters to prevent pipes from freezing.

Health director Carmine Rocco said the health department could not continue operate the same way year after year, hoping for its needs to be addressed. Rocco applauded the commissioners for their forward thinking approach.

Haywood County poised to buy abandoned Wal-Mart

Haywood County Commissioners are expected to vote this week to buy the abandoned Wal-Mart shopping center near Lake Junaluska and retrofit the space to house the Department of Social Services.

Commissioners will convene a special meeting on the issue Wednesday (Jan. 13) where a vote is likely. They have been considering the old Wal-Mart site for more than a year.

Commissioner Mark Swanger said there are several reasons the old Wal-Mart is under serious consideration by the county — primarily because it is the cheapest option. Swanger called it a potential “bargain” for taxpayers.

Remodeling the current DSS office building, which dates back to the late 1920s and early ‘50s, could suck the county into a money pit, Swanger said.

“It would require millions in renovations, heating air, roof windows and you still have an inadequate space for doing business,” Swanger said.

Other sticky issues include lack of privacy for DSS workers handling sensitive cases and lack of handicapped accessibility.

“It is in the bottom one percent of DSS facilities in the state of North Carolina,” Swanger said.

Commissioner Bill Upton detailed the never-ending maintenance issues.

“It’s going to need a new roof, it’s going to need windows, it’s not wired for today’s technologies,” said Upton. “We could go on and on about what it would cost us, we would still have an old building.”

Meanwhile, building something new — including the cost of buying land and site work — would likely be twice as much as what the county hopes to spend on the old Wal-Mart site.

Upton, who supports buying the Wal-Mart property, estimates that a brand new DSS building would scoop $25 to $30 million out of Haywood’s budget.

Taking over the Wal-Mart property will require extensive remodeling to turn the gaping retail shell into offices, but it already has a roof and comes with a parking lot, for example.

Upton is confident that the new county offices would serve as a strong anchor for the shopping center and stimulate adjacent businesses.

Until now, county leaders have had a bad habit of putting off the looming problem for another year, according to Swanger.

“I think it has been recognized by many boards that this space is unsuitable and inadequate,” Swanger said.

As the DSS building continued to deteriorate, the county spent the past decade building a new justice center, a new jail and remodeling the historic courthouse, tying up much of its capital, along with things like a new elementary school in Bethel and new buildings at Haywood Community College.

“I suppose it has been just a matter of priorities,” Swanger said.

Though negotiations have been on and off for more than a year, the county is now in a better financial position to buy the property, Upton said.

“If we don’t do something now, it’s going to cost us much more in the future to buy property and start building,” said Commissioner Skeeter Curtis.

Upton also pointed out the geographic location in the middle of the county as being convenient to a greater number of residents.

If approved on Wednesday, Haywood’s DSS and health departments might share the old Wal-Mart with Tractor Supply Co., which is in the process of signing a lease for a portion of the store.

Haywood again looks at old Wal-Mart for DSS building

Haywood County commissioners are once again considering the abandoned Wal-Mart shell for a new Department of Social Services building.

The current DSS building is housed in a cramped and crumbling 80-year-old building that was once the county’s old hospital. Patching the building has become an expensive proposition, with the latest issue a leaking roof that would cost $260,000 to repair. The county’s facility director, Dale Burris, said there is no easy patch that could solve the problem.

“We can’t find where the leaks are to be honest. You patch one area and it comes in a different area,” Burris said.

Commissioners have long known that the DSS building either needed a major and costly top-to-bottom overhaul or relocation to a new building. When Wal-Mart left a gaping hole in the strip mall where it was located to take up new digs on the other side of town last year, commissioners began eyeing the vacant spot. They decided not to pursue it at the time given the county’s economic situation with the recession. At that time commissioners were seeking a federal loan of up to $11 million to purchase and renovate the retail building.

Commissioners decided they should revisit it, however.

“It’s going to be a constant stream of tax dollars going into a building that is 80 years old,” Swanger said. “I think we would be remiss to marry ourselves to this building. If we put a quarter million dollars into it, we will do the same thing the year after and the year after, and at the end of the day we will still have a bad building.”

At the time commissioners were considering the old Wal-Mart site, County Manager David Cotton had said buying land and building a new DSS building from scratch could cost up to $25 million. Commissioner Kevin Ensley said the old Wal-Mart site would save millions over constructing a new DSS building, a cost that his children will bear.

“They will say ‘Why didn’t you seize the opportunity when you could have,’” Ensley said.

The former DSS director, Tony Beaman, stepped down earlier this year. The department now has a new DSS director, Ira Dove.

The old Wal-Mart could also house the health department, which is in need of new quarters.

Amid tough times, DSS director denied raise

After much deliberation, Swain County commissioners voted 3-2 against an $8,800 pay raise for the Department of Social Services director in the face of a severe budget shortfall.

Director Tammy Cagle asked for the raise to be compensated for additional work she must now undertake to create a child support enforcement division for the county. The state shut down regional offices that formerly handled child support enforcement due to its own budget woes.

“It’s going to be a hardship,” said Cagle. “I have to learn the whole program myself because we have never had child support in our office.”

A plan for the program must be in place in 28 counties across the state, including in Swain, Macon, and Cherokee counties, by Jan. 1.

Cagle and County Manager Kevin King agreed that it would be cheaper to do the work in-house rather than contract it out.

The county would eventually have to hire two employees to handle the new division. Each one would have 66 percent of their salaries funded by the federal government, and incentive programs would make it possible to break even on the program, King said.

King also pointed out that it would cost Cherokee County at least $300,000 to hire three workers, and it would cost Swain a minimum of $100,000.

While Cagle argued she cut back about $51,000 from her own department, some commissioners remained unconvinced about approving a pay raise.

Commisssioner David Monteith, who voted against the motion, said tough times sometimes call for sacrifice by employees.

“I mean no disrespect,” said Monteith. “But sometimes you just gotta work harder to get the job done.”

Commisssioner Genevieve Lindsay voted for the pay raise, stating that this was not part of Cagle’s job. “This would be a new job,” sad Lindsay.

Chairman Glenn Jones made a motion to raise Cagle’s salary by $4,400 but no one seconded the motion.

“It’s hard times. This is something extra she’s got to do,” said Jones. “We’ve got to get some kind of compensation for her job.”

Commissioner Steve Moon supported the pay raise, stating Cagle went out of her way to save money for the county, “not like some other departments in the county.”

Whether they were for or against the pay hike, commissioners uniformly commended Cagle on doing a commendable job.

“This lady deserves this, but I cannot justify it when we’ve laid off people,” said Monteith.

Haywood County nixes old Wal-Mart purchase

It looks like the Department of Social Services in Haywood County won’t be getting a new home after all. Haywood County commissioners decided against purchasing the old Wal-Mart building, which would have housed DSS as well as the health department, in a closed session last week (May 4).

“The commissioners decided that now is not the right time in light of everything else what we’ve had to do as a county in response to the global economic crisis,” said County Manager David Cotton.

County officials were seeking a USDA loan between $10 million and $11 million to fund the purchase and renovations to the building.

Finding a new home for DSS has long been on the county’s to-do list. The department is housed in a decrepit, crumbling old hospital, and is so cramped for space that some closets double as offices.

The old Wal-Mart would have been less expensive than building on a new site.

“In our capital improvements plan, we’d actually identified needing $20 million to $25 million to buy a piece of land and build from scratch,” Cotton said.

The old Wal-Mart purchase is not completely off the table, Cotton said. He said the company that owns the building, RBC Ventures, is still open to the idea of if county officials change their mind.

Civil suit following toddler’s death blames DSS for failing to intervene

A lawsuit filed against the Haywood County Department of Social Services charging the agency could have prevented the death of a 22-month-old baby but failed to take her out of harm’s way continues to make its way through the courts.

The child, Adrianna Lynn Earley, died in November 2006 of “acute oxycodon toxicity” after she got into her mother’s pills in Waynesville, court documents state. The mother, Heather Lacey, admitted that she had prescriptions for Oxycontin and Percocet. She was convicted of involuntary manslaughter in 2008.

Assistant District Attorney Jim Moore prosecuted the case and told The Smoky Mountain News last week that Lacey and the child were spending the night at a couple’s house in Waynesville. When Lacey and the child went to bed the pills were in Lacey’s purse. Lacey woke up to find the child dead and the pill bottle open, Moore said.

Moore said leaving the pills so the child could get to them was reckless and careless. District Attorney Mike Bonfoey compared it to “leaving a loaded gun in reach of a child.”

Now that the criminal proceedings are complete, the baby’s father, Joey Earley, has filed the civil lawsuit representing the child’s estate. The lawsuit charges that DSS could have prevented the death of the child but failed to heed warnings about Heather Lacey being a danger to the baby.

“They (DSS) had a report before them that this lady was dangerous to the child, and they didn’t take action to protect the child,” said the plaintiff’s attorney, Randy Seago of Sylva.

Superior Court Judge Laura Bridges in Jackson County has ordered the Haywood County Department of Social Services to turn over Lacey’s medical records after they were requested by Seago. Seago said the medical records deal with drugs Lacey was allegedly on when DSS was investigating her.

Haywood County and DSS hired Attorney Christopher Geis of Winston Salem to represent them in the suit. DSS’ position in the case is that it did the best it could for the child and could not have prevented the death, Geis said.

There is no trial date set, but Seago thinks the case could be heard this summer.

It took a court order from Superior Court Judge Bridges presiding in Jackson County to release the medical records because such documents are confidential.

Geis said Heather Lacey is now in the custody of the Women’s Prison in Raleigh but is scheduled to get out this month after a 13- to 16-month sentence.

Specific damages being sought in the case are unknown because in North Carolina civil suits heard in Superior Court only specify “over $10,000.”

Haywood County eyes old Wal-Mart shell for offices

A hulking space in the strip mall along U.S. 74 in Clyde that has sat vacant since the departure of Wal-Mart could get a new tenant — the Haywood County departments of Health and Social Services.

A new building to house both departments is the next project on the county’s list of capital improvements. A larger and more conducive space for DSS, which is currently housed in the county’s decades-old former hospital, has been a particular priority. The county is currently shelling out almost $30,000 per year to maintain the cramped, run-down DSS building.

“I don’t think there’s any question that the building is not adequate,” said County Commissioner Mark Swanger. “It’s in disrepair and it’s very expensive to maintain. You’re dealing with an almost 80-year-old building.”

DSS has almost completely outgrown its space.

“They’re pushing maximum capacity and in some cases they’re really pushing the limits of being able to provide services in the space they have,” said County Manager David Cotton.

Relocating the county departments to the old Wal-Mart location would provide thousands more feet of space.

The move may also provide the county with the best hope of finding a tenant for the empty big box structure. Competition to attract tenants is set to increase in Haywood County as the amount of empty space increases.

Goody’s clothing store is going out of business nationally and will leave behind a store front in a strip mall in Waynesville. Home Depot canceled plans at the last minute to open a new store in Waynesville, leaving a gaping site in a brand new big box retail complex where Super Wal-Mart moved to.

And in the wake of a cratering economy, most large retail chains aren’t in the market for new locations. Belk’s clothing store, currently located near Ingles, once expressed interest in relocating to the old Wal-Mart building to give it more space, but the company changed its mind.

“Right now, there’s not a whole lot of retailers that are looking to expand,” said Mark Clasby, Haywood County’s Economic Development Director. “Everybody’s pretty cautious right now. The county’s interest (in the Wal-Mart property) is very encouraging.”

Old retail outlets or malls that have been repurposed as office space are known as greyfields, said Clasby, and it’s a phenomenon that’s happening around the country. In Buncombe County, commissioners are currently looking at converting the Biltmore Square Mall, which is for sale, into a county office building.

The relocation of county offices to the old Wal-Mart building isn’t definite, although county commissioners discussed the purchase in closed session. The county has asked Cotton to explore the possibility of the Wal-Mart site, but officials are investigating other options. Those include everything from renovating the current building used by DSS to finding a vacant parcel and building a new facility, Cotton said.

The economic downturn has tightened the county’s budget, which may lead some to question the county’s timing of buying or building a new facility. But the current economy has presented some good deals, said Commissioner Chairman Kirk Kirkpatrick.

“Now’s the time to take advantage of lower costs in loans, construction and purchase of property,” he said.

Money from the proposed federal stimulus package could help finance the purchase or construction of a facility, said Cotton, though it’s unclear how long it will take for the money to trickle down to local governments.

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