The Jefferson City Council is expected to tackle a pair of high-profile issues Monday night, including taking steps to ensure the city's health insurance plan is fully funded, and looking at options to demolish the abandoned Truman Hotel.
Councilman Mark Schwartz introduced two bills that would put an additional $750,000 into the city's self-funded health insurance plan. The money is needed to prevent a negative fund balance before the end of fiscal year 2024, according to council documents.
The health insurance fund has been a source of turmoil for the city. In November 2024, Quantify Specialty Care pulled out of a deal to provide health care for city employees. Jefferson City began searching for new health insurance programs due to the high cost of their current self-funded insurance plan, according to previous KOMU 8 reporting.
Jefferson City Councilman Aaron Mealy filed a complaint in Octoberaccusing the city of violating Missouri's Sunshine Laws for failing to post notices ahead of meetings about new healthcare plan options. The complaint, filed with the Missouri Attorney General's office, came after the council voted to introduce Quantify Specialty Care.
In a news release, city Administrator Brian Crane said the deal with Quantify would have helped cover an expected $2 million shortfall in the city's health insurance fund.
After the deal with Quantify fell through, Schwartz introduced two bills that offer alternative plans to pump an additional $750,000 into the fund.
The bills provide alternative plans to move money into the health insurance fund. Both bills pull money from the city's general fund, parks fund, parking fund, and wastewater fund. The biggest difference is how much money would come out of the parks fund. One bill would pull $89,244.85 out of the parks fund. The other bill would pull $129,000 out of the parks fund.
Truman Hotel demolition
Council is also expected to review options for the abandoned Truman Hotel. The hotel closed in 2015 and has stood vacant since 2017 when its owners signed a 10-year redevelopment agreement that included tax incentives.
The Puri Group, which owns the property, inked a deal to develop the property in two phases. Phase one called for a five-story, 131-room hotel with an indoor pool and restaurant. In 2019 the group completed construction of a Holiday Inn next to the Truman Hotel.
Phase two of the project calls for the company to demolish the remaining hotel and construct a new four-story hotel with a 20,000 square foot conference space that's connected with the first hotel.
Owners of the property recently said they also have plans to connect the new hotel and the Holiday Inn via breezeway, according to previous KOMU 8 reporting.
But progress on the redevelopment has stalled in the past, leading to frustration from current and former council members.
On Monday, council will review an agreement that would authorize the city to spend up to $250,000 to help remove debris from the property.
The council will also look at a memorandum outlining alternatives to move forward on the demolition. The memo offers three options for demolition.
The city could take no action to help facilitate the project. But then the timeframe for demolition would be up to the owners. Council could also authorize up to $250,000 to help cover debris removal. In that case, the owners would be expected to complete demolition within six months.
The third option is more complicated. The city could pursue a dangerous building declaration.
Jefferson City would be responsible for upfront costs of demolition, and a tax lien would be placed on the property to cover those costs, according to the memo. If the tax liens aren't paid within three years, the property may be sold in a tax sale. Instead of a tax sale, the city could also pursue the condemnation and acquisition of the property through imminent domain.
This could spark a years-long legal battle. If the city pursues a dangerous building declaration, a hearing would be scheduled. The owners would be ordered to correct the conditions or appeal within 30 days. If the owners decide to challenge the findings, the legal fight could last for years, according to the memo. If there is no appeal by the owners, demolition could be completed within a year.
Jefferson City Council is scheduled to meet at 320 E. McCarty St. at 6:00 p.m.