Northwest Health blocks sale of half-finished Indiana medical office building

In 2018, construction began on a 45,000-square-foot medical office building in Valparaiso, Ind., but five years later, the structure remains half finished, according to a May 1 report from NWITimes.

Unpaid subcontractor fees have stalled the work, with the Valparaiso Board of Works ordering the structure be demolished in 2020. The developer was able to get more funding to restart construction, but little progress has been made. Another developer is interested in buying and finishing the property, but Northwest Health, based in Valparaiso, is holding up the sale, according to the report. 

Northwest Health used to own the property and allegedly has a covenant that says a medical office building cannot go in that spot. The system is fighting a potential building acquisition in court. 

"Northwest Health is holding up these contractors from being paid. They are preventing this blight from being removed in our community," Matt Murphy, Valparaiso's mayor, said at an April 25 city council meeting, according to NWITimes. "I can't emphasize enough how frustrated the city of Valparaiso is with their decision to appeal the court order and stop this progress." 

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