TERRE HAUTE —
A potential $20-million investment in Terre Haute’s east side has been blocked by public opposition.
Magnolia Health Systems of Indianapolis announced Thursday it was dropping plans to build a senior-living complex on the north side of Ohio Boulevard in front of Deming Park.
In an email to the Tribune-Star, Vince McGowen, director of business development for Magnolia, stated that Magnolia had decided to withdraw a request for rezoning 46 acres of undeveloped land for the project. Rezoning the property from single-family residential to “general residential” was a necessary first step for the now-defunct project.
“It is abundantly clear that the facility which we intended to enhance services available in this community is not welcome,” McGowen said.
“Regretfully, we will not have the opportunity to bring the jobs and investment to the community that we had intended.”
A cheer went up from the approximately 120 people packed into the Terre Haute City Council meeting room Thursday evening when Rick Shagley, a Terre Haute attorney, announced he had been instructed to withdraw the rezoning request. The rezoning petition was still officially in front of the Vigo County Area Plan Commission but would have eventually come before the nine-member council.
“This is a wonderful moment, not just for us, but for the whole community,” said Judy Anderson, one of dozens of Ohio Boulevard-neighborhood residents who joined with other east-side residents in strongly opposing the project. Approximately 120 residents packed the Area Plan Commission meeting Wednesday night at the Vigo County Annex. Many of those same people filled the City Council’s chambers Thursday night.
Many residents stood and clapped and cheered after Shagley, who had been representing the project, announced his instructions.
Some opponents of the proposed complex had suggested it might work better in another part of the city or county. However, on Thursday, McGowen made it clear Magnolia has no intention of “moving forward” with any development plans in Vigo County.
Two factors led Magnolia, which owns about 30 nursing homes in Indiana, to reach its decision, McGowen said. First, neighborhood representatives showed no interest in meeting with the company to work toward an agreement. Second, reports of Wednesday night’s Area Plan meeting, which featured about 30 minutes of statements from opponents, showed clearly the project was unwelcome by the neighbors, he said.
Opponents of the proposed development stated it would harm property values on Ohio Boulevard, Edgewood Grove and other nearby areas. They also worried about increased traffic, air quality, lighting and what they believed would be damage to the beauty and historical significance of the boulevard.
Some neighborhood residents said they were also opposed to the project in light of information provided by Terre Haute attorney Chris Gambill, who had represented a family in a lawsuit against Magnolia’s president, Stuart Reed. Gambill urged the Area Plan Commission to reject the rezoning request.
Citizen participation in local government as the Magnolia project evoked “is what Terre Haute needs a lot more of,” said Council President Don Morris as the large crowd filed out of the council chamber. “What you just witnessed is what we’d like to have every month,” he said.
The retirement community was to include a 96-unit nursing home, a 52-unit assisted living facility and 17 duplex “patio homes,” according to Magnolia. It would have employed about 150 people in full-time positions serving about 180 residents, company officials said.
“There are a lot of reputable nursing home corporations in the state,” Gambill said when asked later Thursday night whether he was concerned about the loss of potential investment and job creation. “If there is a need in Vigo County, those companies are going to come here,” he said.
Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
Local & Bistate
Related Photos
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Conferring: Judy Anderson and Terre Haute City Council president Don Morris chat before Thursday night's sunshine meeting. Anderson and her neighbors along Ohio Boulevard later learned that a rezoning request had been removed, stopping plans for a retirement community on the east side of town. (Tribune-Star/Jim Avelis)
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Tribune-Star/Jim Avelis Approval: Gloria Anderson shows her approval at Thursday night's City Council meeting when it was announced that plans for a retirement community would not move forward.
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Tribune-Star/Jim Avelis Joy: George barden listens to his daughter Cathy O�Keefe explain that a rezoning request for property alonh Ohoi Boulevard has been removed from the Terre Haute city council�s agenda.
Discussion
Magnolia gives in on rezoning
Senior-living complex was planned for Ohio Boulevard
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