After seeing a need many years ago for both senior housing and childcare facilities, Ellinwood Hospital & Clinic entered into an agreement with both Housing Opportunities Inc. (HOI) and St. John’s Child Development Center to lease properties for those needed services for a nominal fee. Recently, the decision was made to sell those properties to those organizations.

“In 1999, the hospital entered into an agreement with Housing Opportunities for them to build the apartment complex that is now “The Oaks” for the primary purpose of senior housing,” said Justin Lear with the Board of Trustees for Ellinwood Hospital and Clinic. 

There was no rent payment within the agreement and the only remuneration provided was a monthly nominal fee for road maintenance around the property, according to Lear. However, the property would continue to be owned by the hospital and would return to the hospital upon completion of the 50-year lease. 

“Since we began the new hospital facility project, the Housing Opportunities Inc. board has expressed interest in completing purchase of the property to solidify their continued position of providing housing to Ellinwood seniors,” Lear said. 

After making an offer on the property, legal counsel determined there must be a bidding process. That was completed early this year, and HOI won the negotiated bid for the property and all considerations given to the purpose, use, and continued benefit to the Ellinwood community.

“Since The Oaks was built in 2000, Ellinwood District Hospital has generously allowed Housing Opportunities Inc. to utilize the land it owned, making this important housing resource possible for the community,” said Callie Miller, executive director with HOI. “We are grateful for the partnership with the hospital over the years, reaffirming our shared commitment to stability and the long-term success of housing.”

The relationship with St. John’s Child Development Center began to help with the childcare needs of the community, according to Lear.

“Originally, the lease to the CDC was for a nominal lease amount of $50 and their share of the utilities, with maintenance provided by the hospital,” Lear said. “The hospital has been generous with assistance in updates and repairs and supported the CDC’s efforts to maintain their areas of the building continually.”

With the move of the hospital to the new facility, Lear said there was no longer a need for the south portion of the old building for an outreach clinic or offices. Representatives with CDC expressed interest in expanding into that area; and as a result, the lease was updated to include the entire structure at the same terms as held previously.

“The CDC has done a lot of updates to the facility, and the hospital continues to recognize that without the CDC, many of our staff or employees of other businesses wouldn’t have access to local childcare,” Lear said. “With the grant funding and updates the CDC was completing, they were concerned with the longevity of the agreement.  That was secured, along with the expansion of space, within the terms of the updated agreement in early 2025.”

Again, hospital counsel advised the property must be offered through a negotiated bid for it to be disseminated at some value to another party, while also noting the encumbrance of the lease to the CDC. That negotiated bid process was recently completed with St. Johns CDC, the successful winner, with their monetary bid and all considerations given to the purpose, use, and continued benefit to the Ellinwood community.

According to Tricia Schlessiger, CDC Board Member, St. John’s Child Development Center has partnered with Ellinwood Hospital since 1994 to provide Daycare and Preschool to the Ellinwood Community.  

“We are incredibly thankful for this relationship and it’s hard to find a citizen of Ellinwood who hasn’t been touched by the CDC,” she said. “We now care for the next generation of children whose parents attended our center and are now bringing their children.”

According to Schlessiger, when fully moved, the center will be licensed for 85 children.  

“Our community is truly blessed to have both the Ellinwood Hospital and the St. John’s Child Development Center.”