T-R PHOTOS BY LANA BRADSTREAM The former UnityPoint Hospital in downtown Marshalltown has fallen into disrepair and has sat abandoned for a few years. Due to the danger the facility poses to the neighborhood, such as not being secured from vandals and acquiring vermin, the city is petitioning the court for the deed to the property. The site is also on the Marshall County Sheriff’s Office foreclosure sale list.

The old hospital in downtown Marshalltown is still included in the Marshall County Sheriff’s Office foreclosure sale list. The sale of the $1.3 million property has been postponed three times and is now rescheduled for Jan. 6, 2026. The original foreclosure sale date was Oct. 7.

Sheriff Joel Phillips said his office is not told of the reasons as to why sales are postponed and added that the possible reasons are varied, such as ongoing negotiations between the owner — CD Marshalltown — and the mortgage company. He said he is looking into rules pertaining to sales extending 60 days past the original date or being postponed more than twice.

However, one legal happening which is not to blame for the postponements is the lawsuit against the owner by the City of Marshalltown. Along with CD Marshalltown, AJS of Des Moines, Finding Serenity and the Marshall County Treasurer are included as respondents.

City Administrator Carol Webb said the foreclosure sale process is controlled entirely by the courts and the sheriff’s office. The legal actions by the city have nothing to do with the postponements. The city is petitioning the court for the title to the abandoned property, and the matter will go to trial on Feb. 4, 2026.

The filed court petition states that the former UnityPoint hospital has not been boarded up or secured from vandals and squatters. The property has accumulated garbage and gained vermin and uncut plants. There has been no effort to rehabilitate the property, nor have good faith efforts to restore it to productive use been seen. The petition further states the city has put forth considerable effort to maintain the property.

Despite some city officials not wanting to obtain the property, Webb said it is the city’s priority to protect the public and prevent further deterioration of the dangerous structure.

“While the city does not seek to be the owner of this building, the current owner has failed to maintain the property, and there is no viable private party stepping forward to take responsibility,” she said.

According to Webb, the 657A petition is a last resort tool. It allows a city to intervene when an abandoned structure is determined to be a danger to the neighborhood. Ultimately, she said the city’s goal is to control the situation so action can be taken. The city is not seeking permanent ownership.

There has been speculation that if the city does gain ownership of the property, the old hospital will be torn down. However, Webb said it is too soon to say for sure what will happen.

“If the city becomes the owner, we would evaluate all feasible options,” she said. “If the city did take possession and determined demolition is the most appropriate outcome, we would gather estimates. I think the cost could vary significantly based on how much asbestos or other hazardous materials are present. Precise costs will require further environmental assessment.”

Whether or not the city gets ownership, Webb said the simplest and quickest solution to the former hospital is responsible ownership — either CD Marshalltown correcting conditions immediately or another party purchasing the site and rehabilitating or demolishing it.

CD Marshalltown, which is a division of Covalt Development owned by Scott Covalt of Dike, purchased the property in January 2022 for $250,000.

“The city’s goal is not ownership,” she said. “The goal is action. Any resolution that removes the blight and eliminates the safety hazard without putting financial burden on local taxpayers is preferable.”

With the former hospital in a deteriorating condition for such a long time, Webb added that it is a significant safety and economic concern not only for downtown Marshalltown, but the entire community.

“The city has a responsibility to act when a property reaches this level of abandonment and risk,” she said. “We are committed to following the legal process and working toward a solution that protects the public and supports the continued revitalization of our downtown.”

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Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com.