A development agreement is being pursued between the city of Muscatine and ORA Orthopedics for the construction of a new clinic.
Muscatine council members gave their consensus Thursday to assist the business with the construction of a $3.5 million clinic at 200th Street and Mulberry. ORA is proposing to build a 15,000 square foot clinic at the southwest corner of Mulberry and 200th.
In addition to the $3.5 million cost of the clinic, it is estimated $1.2 million will be used to outfit the clinic. The clinic is expected to create 22 new healthcare related jobs.
During a presentation to the council, Kevin Kelner of ORA said it would cost about $600,000 plus engineering expenses and interest costs for the clinic to hook onto city utilities. While the site is in city limits, it lacks a sanitary sewer connection. He requested that the city reimburse that cost through tax increment finance, or TIF, increases over the next 10 years. The payments would not exceed $800,000.
"The extension of these utilities will serve several acres," he said. "I can't tell you I've calculated how much more area you will be able to develop because of it, but it will open up a whole new area for future projects."
In addition to the sewer connection, significant improvements will need to be made to the gravel portion of 200th Street. Currently, the location of the clinic is a field directly across from Palm Theater and Casey's.
Council member Angie Lewis asked if there is a way to connect with buildings in that area, or if Highway 61 would have to be disrupted to install the line. Kelner said there is a manhole for the sewer near Casey's. He said the sewer hookup would be bored under the pavement, so Highway 61 would not be disrupted by the work.
"We checked with Muscatine Power and Water and I believe Alliant will provide gas and MPW will provide electrical," Kelner said.
Ken Brockman, CEO of ORA, said the clinic currently rents space in Muscatine.
"We think there is a need for additional orthopedic specialists in the community," he said. "Our plan is to put a building in, expand the amount of physicians and providers that we can have in the space," he said. "We are looking at adding and additional two physicians and the support staff behind that."
He said about half of the jobs added would be higher level positions.
Mayor Brad Bark said he used to be in healthcare and would have to send people out of Muscatine to receive care. Having this clinic here, he said, is fantastic and will be a great thing.
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