City of Indianapolis Faces Asbestos Building Dilemma

In September of 2004, a consortium of doctors took over the then-defunct Winona Memorial Hospital, hoping to be able to turn a profit before the building's overwhelming financial debacle could force its closure, again.

They were not successful, and the building remained closed, with a deficit of $2.5 million in unpaid taxes hanging over its head. Sheriff's sales, aimed at disposing of the building through bids, found no takers in either 2008 or 2009. Then, in September of this year, the city of Indianapolis bought both the building and its almost four acres of surrounding land.

Now the task of deciding what to do with the property weighs heavy, because in addition to the back taxes anyone planning renovation, or even teardown to salvage the property for rebuilding, faces the costly challenge of first removing all the asbestos.

The hospital was founded in 1956 by renowned cancer researcher Dr. Joseph E. Walther, and run for a number of years by Leland Medical Centers of Texas, which eventually went bankrupt. At the time of construction, asbestos was used widely in any number of building materials, including insulation.

Asbestos, in its friable (broken) form, is the primary cause of pleural mesothelioma. The fibers, released into the air, are inhaled and lodge in mesothelial tissues surrounding the lungs, lying dormant for up to five decades and progressively involving more and more vital tissue until symptoms force a sufferer to seek medical help.

Once diagnosed, most patients are given between a year and 18 months to live, with ten percent of cases - diagnosed early and treated aggressively with a combination of surgery and dual chemotherapy - surviving up to five years.

Pleural mesothelioma is the most common form mesothelioma, accounting for 75 percent of all cases. Next is peritoneal mesothelioma, occurring in the mesothelial lining of the abdomen, which accounts for up to 20 percent of cases. Pericardial mesothelioma, occurring in the sac around the heart, is less common, and mesothelioma of the tunica (the membrane surrounding sexual organs) accounts for only a fraction of cases.

Winona Memorial Hospital has been devastated by looters since its closure, and asbestos insulation freed from wall cavities by the removal of copper piping and other materials, litters the premises. The city has posted signs at all entry doors, warning of the danger, and a recent incursion by burglary suspects forced police to send in specially trained officers who donned hazmat suits to bring out the offenders.

Two proposals now face Indianapolis city officials; the Children's Museum wants to tear down the building to build a recreational park and outdoor learning center, and a private company specializing in environmental remediation of hazardous properties wants to renovate the old hospital into senior living, keeping the property on the tax rolls.

Both will require asbestos remediation, a costly and time-consuming undertaking. John Bartholomew, spokesman for the city's Department of Metropolitan Development (DMD), feels the city should be responsible for cleanup, and has demonstrated his commitment by creating a (Friday) day of service in which 18 DMD employees painted over accumulated graffiti on the hospital building's exterior walls.

Before the city can seek, or even accept, any redevelopment bids, it needs to do a complete inspection of the property and assess its true value in light of the asbestos. Located in the heart of the city, the property surrounding the old hospital is quite valuable in its own right.

Once the assessment is finished, Indianapolis city officials plan an RFP (request for proposal), allowing developers to make offers, of which the city will select the winning bid - presumably a price that allows the city to recapture the back taxes without investing a huge amount in asbestos remediation.

In 2008, when Children's Museum officials made their offer, demolition costs (including asbestos remediation) were estimated at just under $3 million. With many contractors out of work because of the recession and housing decline, the cost may be even less today. The Children's Museum already owns the former hospital's parking lots, purchased from New York-based CIT group, the first mortgage holder.

The city has no set plans for use, but proposals have been floated for a drug rehab clinic, a maternity clinic and a hotel, in addition to the park and senior living center.

Sources: American Medical Association, Indiannapolis Star, WTHR

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