The completion of a Valparaiso medical building that's sat unfinished for years remains held up by legal challenges. City Attorney Patrick Lyp says work on the building at 1425 Glendale began in 2018 but largely ground to a halt by 2021, when the developer didn't pay its subcontractors. Another challenge is that the site's former owner, Porter Hospital, didn't want it to be used for medical purposes.
"If you're a McDonald's and you own property next door, you don't want a Burger King coming next door," Lyp told the city council Monday. "And so, it certainly was not unreasonable that Porter Hospital would want some restrictions placed on that property."
But, that stipulation was never recorded. Now, Lyp says the court-appointed receiver has a buyer lined up to complete the building, but Porter Hospital, now known as Northwest Health, is appealing the court's decision to let the sale move forward without that covenant.
"So there is, I think, a solution. But, as the old saying goes, it takes two to dance, and I don't think there are two parties yet willing to dance," Lyp added.
That could delay the sale by months. Mayor Matt Murphy said Northwest Health is holding up local contractors' ability to get paid and preventing the removal of blight across the street from the ValPlayso park.
"I can't emphasize enough how frustrated the city of Valparaiso is with their decision to appeal the court order and stop this progress. We have a bona fide offer, a purchase agreement, finally, and they're holding it up," Murphy complained.
Lyp said the only thing the city can do is issue a demolition order. But that would likely come at a great initial expense to the city and result in contractors getting less of the money they're owed.
