Nevada County Picayune and Gurdon Times Newspaper Archive

City In Trouble Again With Old Hospital; Lawsuit Filed

BY JOHN MILLER

More problems loom on the horizon for the old Gurdon Hospital.

A Tennessee bank has sued Coleman Research and named the City of Gurdon as a third party defendant in the case.

The suit is the result of a loan Coleman Research, owned and operated by Cliff Coleman, took out to help with the purchase of the facility early in 1999.

Taylor King, the city attorney, has filed a motion to dismiss as Gurdon has no duty to BankTennessee, located in Collierville.

According to King, Coleman procured the loan from the bank and used the funds to purchase the old hospital building and grounds. He was given a warranty deed from the city concluding the transaction.

"I think we'll be able to get the case dismissed," King said of the city's involvement. "There are no facts for a cause of action against the city."

The case has been set for trial, though, with the court date scheduled Feb. 2-3 in Arkadelphia.

"The real suit," King continued, "is against Coleman, though Gurdon was included late."

The bank, he said, has alleged Coleman and Elton Stewart fraudulently obtained the loan to buy the hospital from Gurdon.

Work was being done to renovate the structure before funds ran out, but, King added, Coleman and Stewart reportedly signed papers with the bank in Tennessee showing no liens against the facility. However, some liens had reportedly been filed as contractors had not been paid for the work done.

It was up to the buyer and seller, King said, to disclose this information. "The city was under contract to the buyer, Stewart, who had a right to make the purchase."

Stewart, King continued, wanted to sell the facility to Coleman, and exercise his option to buy the property. This was done, with the Gurdon City Council approving the sale.

"Gurdon was drug in at the end (of the suit)," the barrister said. "We've filed a motion for the court to hear our case before the trial. After the sale Gurdon wasn't involved. The city just sold it to Stewart, who sold it to Coleman."

However, he added, the suit alleges the city didn't sell the hospital with a clear title.

"This was a routine property sale by the city," King said. "The city gave Stewart a warranty deed."

Coleman approached the city concerning the purchase of the hospital to turn it into a residential care facility.

He hired Carolyn Skaggs as the clinical director, and contractors to begin renovation.

Originally, Coleman stated the center would be open by mid-April 1999. This didn't happen.

The concept presented was there would be 25 beds for residents.

Those living at the center were to have access to laundry facilities, social activities and have transportation provided for outings, medical appointments and other needs.

The city was informed each of the rooms would have its own central heating and air conditioning unit so residents could set the temperature at their personal comfort level.

Meals were also to be provided for residents, with a doctor to be hired by July.

None of this ever occurred. Currently, the old hospital sits abandoned, with no signs of activity going on at all.

Coleman wasn't the first with grandiose ideas about the old hospital. A group leased it in 1998, renovating it with the idea of turning it into a residential care center as well.

A sign was erected proclaiming it as Ami Village, but, again because of the lack of funding, this venture, too, failed.