The Indian River County Hospital District has made a pivotal decision regarding its $3.8 million sober home facility, located just outside Vero Beach city limits on the 600 block of 10th Street. After careful consideration of proposals from four organizations vying to operate the facility, and a deeper dive into the complexities surrounding the property, the trustees have unanimously voted to explore an exit strategy, initiating the process to sell the property outright.
The facility was originally acquired by the Hospital District in 2024 with the intention of establishing a vital sober home to serve Indian River County residents. The district had hoped to find a tenant-partner that could operate the facility sustainably, paying market rent, with taxpayer funds reserved for supporting services for indigent patients. However, the path forward has proven to be fraught with unexpected challenges, primarily stemming from a fundamental conflict with the property’s existing residential zoning.
“In light of the presentations yesterday, I think it behooves us to engage a real estate broker. Additionally, I think that we ought to give serious consideration to option five of selling the property outright.”
During a recent meeting on November 19, the Hospital District heard from potential operators: New Horizons of the Treasure Coast, Rite Life Services, Thrive (formerly Substance Awareness Center), and PUR Health & Wellness. These organizations presented their plans for utilizing the property as a drug and alcohol treatment facility. Yet, the discussions brought to light a critical issue that had been overlooked during the initial purchase.
The legislative act defining the Hospital District’s mission is to support health and medical services for county residents. This mission directly clashes with the property’s residential zoning, which strictly prohibits the performance of such health and medical services on the premises. This zoning hurdle, initially dismissed as a non-issue, has now become a central dilemma. It was revealed that the district’s negotiating team had not obtained an official written opinion on the zoning from the county planning department prior to the acquisition, despite a nominal $75 fee for such a critical assessment.
The consequences of this oversight are substantial:
- Without a significant re-zoning effort, the district cannot legally use the property for its intended purpose.
- A re-zoning process would be lengthy, potentially taking many months.
- It would incur substantial costs, estimated at $15,000 or more in fees, alongside thousands for legal and engineering work.
- Neighbors of the 10th Street facility are widely expected to oppose any re-zoning attempt, adding another layer of complexity.
Trustee Karen Deigl, who served as the point person for the December 2024 property deal, publicly acknowledged her concerns, stating, “I’m concerned about the zoning.” This admission underscores the gravity of the situation and the district’s belated realization of the property’s operational limitations.
Following the detailed presentations and the ensuing discussions about these zoning complications, Trustee Paul Westcott motioned to direct staff to engage a real estate broker to analyze the potential sale of the 10th Street property. This motion, aimed at allowing the district to entirely step away from the sober home operation, was seconded and subsequently passed unanimously by the trustees.
The next procedural step will involve the trustees officially declaring 620 and 650 10th Street as surplus government property, paving the way for it to be listed for sale. This decision marks a significant turning point for the Vero Beach Hospital District, as it seeks to rectify a costly acquisition and re-evaluate its approach to providing essential health services within the constraints of local regulations. The focus now shifts from operating a facility to divesting from a property that has proven more problematic than initially anticipated, highlighting the critical importance of due diligence in public acquisitions.
