New life for old hospital
Developer announces plan to turn building closed down by Conroe officials into affordable housing for seniors
Nearly three years after the city of Conroe shuttered the dilapidated building that once housed Montgomery County Hospital, a Kansas-based developer is proposing new life for the structure as apartments for budgetstrapped seniors.
Overland Property Group is planning the renovation of the 57,000-square-foot building, which most recently served as the East Texas Dream Center.
In June 2018, Shawn and Shannon Nelson, the founders of nonprofit East Texas Dream Center and the building’s owners, were issued more than 700 fire code violations along with 170 building code violations following a blaze at the building May 18. Firefighters were able to contain the smoke and fire to the electrical panels and wiring, but fire officials spotted the violations inside, triggering a call to the city code enforcement department.
According to Conroe Fire Marshal Steve Cottar, the building at 301 First St. has numerous safety concerns including asbestos, lead-based paint, and electrical and structural problems. Water and sewer service and power were disconnected. In early 2020, the building was listed for sale for more than $1 million.
However, during a City Council workshop meeting Wednesday, Overland Property Group President and CEO Brett Johnson said he was aware of the building’s history and current condition. He presented a plan to renovate the historic building into one- and two-bedroom apartments for qualified seniors.
The $12 million project is dependent on the approval of lowincome housing tax credits. Those credits provide a tax incentive to construct or rehabilitate affordable rental housing for lowincome households.
“The plans are very preliminary,” Johnson said.
Johnson said his company has completed 65 projects since launching the business in 2002, including 19 in Texas.
Plans for the project, dubbed “The Landmark,” call for 45 units ranging from 750 square feet to just over 1,000 square feet and rents between $550 and $900. About five of those units, Johnson added, would be market rate at about $1,000 to $1,100 per month.
Council members voiced support for the project.
“There is a lot of history there,” said Mayor Jody Czajkoski. “I have walked through the building before and structurally it’s in good shape.”
Councilwoman Marsha Porter said historically, the council has not been supportive of projects like the one proposed by Johnson.
However, Porter and Councilman Duke Coon said seeing the building back in use is better than letting it sit and deteriorate.
“It would sure be nice to see something happen with that building at zero cost to the city,” he said.
The former hospital building opened in 1938 as the first public hospital in the region. The 35-bed facility replaced the privately owned Mary Swain Sanitarium that provided health care during the 1920s, and then expanded to include more beds in 1953.
By the 1970s, a higher demand for better medical services in the growing county led to legislation creating the Montgomery County Hospital District in 1977. The Conroe Regional Medical Center was born, and the original county hospital stopped providing treatment.