T-R PHOTO BY LANA BRADSTREAM An open door, debris, broken windows, standing water and piles of rocks sit on the lower level of the former hospital in downtown Marshalltown. The city is taking the owner of the site to court to get the deed, but the trial has been postponed to June.

More time will pass before the future of the old downtown hospital site is determined.

The same day the Marshall County Sheriff’s Office auction of the foreclosed property was canceled, the City of Marshalltown’s legal action to obtain the deed was postponed by the court. Originally, a non-jury trial was scheduled for Feb. 4, but on Tuesday Judge Christopher Polking moved the start date to June 9. The postponement was at the request of both the city and the respondents — property owner CD Marshalltown, AJS of Des Moines, Finding Serenity and the Marshall County Treasurer.

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

Marshalltown City Administrator Carol Webb said the trial was inadvertently scheduled too soon, which did not provide enough time for adherence to the parties’ previously filed trial scheduling and discovery plan.

“The city remains committed to addressing the abandoned hospital in a thoughtful, lawful and fiscally responsible manner,” she said. “While progress may feel slow at times, our goal is to achieve a solution that is durable and in the best long-term interest of the community.”

The litigation requires a fair amount of cooperation and coordination between the city and the respondents and the legal counsels. As much as the city and Webb would like to get the case into court and resolve the matter as quickly as possible, she said there are established processes and procedures to follow, and parties are entitled enough time to develop facts and prepare defenses.

Webb added that the canceled auction and the city’s case were separate from one another.

“While the cancellation changes the landscape somewhat, the city’s focus remains on resolving the condition of the property through the court process,” she said. “Ultimately, clarity on ownership and responsibility is key to moving forward, regardless of the auction status.”

The downtown property is a focus of RDG Planning & Design, which is working on an updated comprehensive plan for the city. Designers have been sketching potential renderings while listening to suggestions from city officials and Marshalltown residents on what they would like to see at the site, and what the concerns are. Some ideas for the site, which assumes most of the old building is demolished, include a new community venue with a kitchen, single-family housing, a broad-reaching business incubator and green space.

According to Webb, the concepts illustrate the possibilities, but no final decisions have been made and future redevelopment would follow a transparent public process.

“If the city were to obtain the property, the next steps would involve careful evaluation of the site, costs and potential uses,” she said. “Any future improvements would be guided by [Marshalltown] City Council direction, public input and financial feasibility.”

Webb hopes the site can ultimately be transformed from a liability into an asset, something which contributes positively to the community, supports redevelopment goals and reflects the pride residents have in Marshalltown.

“Whatever the outcome, the priority is ensuring the property no longer poses a safety risk and that its future use aligns with community values and fiscal responsibility,” she said.

The city administrator understands that the abandoned hospital has been a concern for a long time and that Marshalltown residents are eager to see progress.

“While the delay is disappointing, it does not reflect inaction by the city,” she said. “We are continuing to pursue the legal tools available to us to address a dangerous and deteriorating property in a way that protects taxpayers and positions the site for a better long-term outcome.”

——-

Contact Lana Bradstream

at 641-753-6611 ext. 210 or

lbradstream@timesrepublican.com