Over Budget and Behind Schedule

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Construction on County Skilled Nursing Facility Was Set to Begin in January

Ground was broken on Oct. 23 on the planned nursing and rehabilitation facility to be located at 601 Calle Chamisal, but the project has been slow going. Construction was set to begin on Jan. 26, but still is not underway.

During the Feb. 27 Rio Arriba County Commission meeting held in Tierra Amarilla, the Rio Arriba County Skilled Nursing Facility and Rehabilitation Hospital Plan Review was on the agenda for approval.

Grants and Contracts Coordinator Bonnie Brown Cordova gave the presentation and said the plan review needed to be approved so they could submit a construction permit. 

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When ground was broken on the project last fall, it was estimated the facility would take one year to complete.

 

2019 GO Bond

It’s going on six years since Rio Arriba County voters passed the General Obligation Bond for $30 million, which would help fund a new skilled nursing facility and rehabilitation hospital in Española. 

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In May 2019, Rio Arriba County Economic Development Director Christopher Madrid said the county was in negotiations to purchase the building that formerly housed the Española Valley Nursing and Rehabilitation Center. The original plan was to use it for a nursing and rehab center, but building owner Omega Healthcare Investors included a restrictive covenant in its purchase agreement, according to a previous Rio Grande SUN report. Omega is a real estate investment trust that owns skilled nursing facilities and senior housing facilities.

Madrid said at the time, that the restrictive covenant forced the county to look for other possible providers. He was also negotiating with several companies to rent the building from the county after it was purchased, the SUN report said. The building, however, was eventually purchased by the county and now houses Darrin’s Place.

And despite the bond for $30 million passing in 2019, not all the money was for the facility. Only $12 million was allocated for the nursing facility, County Manager Jeremy Maestas said. The rest of the funds were directed toward the recreation facility and specific road projects in the county.

 

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Short on funds

According to a Request for Proposals released in January 2023 for the skilled nursing facility and rehabilitation hospital project, the budget was $14.8 million. However, Maestas said based on the facility needs for the quantity of beds and other spaces, the square footage of the facility had to be increased.

“The owner’s budget for the construction project was stated to be $24 million based on size and scope of work,” he said via email in October. “This figure does not include furniture or equipment.”

Española and other area residents have been without a skilled nursing facility and rehabilitation hospital since the end of 2018 when the Española Valley Skilled Nursing Center closed. The closure left many families with no choice but to relocate their loved ones or begin caring for them at home.

Maestas said during the Feb. 27 meeting that they are working diligently to make sure they’re making significant progress on the nursing facility. They have been working on the budget and lobbying legislators. Staff has also been working to get people to run the skilled nursing home.

 

Slow progress

Commissioner Alex Naranjo expressed frustration with the project during the meeting last week. He said since February 2019, they have been working on the nursing home.

“It was going to cost us $90 a foot, now it’s $800 a foot,” he said. “Whoever passed a bond in 2019 didn’t know what they were doing. This nursing home is going to cost us $30 million and we don’t have the money.”

He pointed out that the county has $12 million to build the nursing home, but it’s going to cost them $26 million.

“We need $14 million,” Naranjo said. “… Plus we have to plan a recreational facility, that will cost $6 million. We have a dilemma. We have a big problem.”

 

A necessity

Maestas said in October, this project is important because “when the original nursing home closed it devastated many families within the City of Española and County of Rio Arriba, families were literally torn apart.”

He said the center will provide essential services to seniors and those in need of rehabilitation, “ensuring they receive the care and support they deserve in a compassionate and nurturing environment.” 

“As we broke ground, we are not just looking at constructing a facility; we are building a future where our loved ones can receive high-quality care close to home, and most importantly be close to those near and dear to their heart,” Maestas said. 

The center will create jobs, stimulate the local economy and enhance the quality of life for many families in the county, he said. 

 

Approved 

At the conclusion of commissioner comments following Cordova’s presentation, Maestas recommended approval of the plan review. Commissioner Brandon Bustos made a motion to approve it, which was seconded by Commissioner Alex Naranjo. The two commissioners, along with Commissioner Moises Morales, voted to approve the plan.

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