Harvey County to sell former Halstead hospital at auction

Harvey County has scheduled a tax foreclosure sale of the former hospital and clinic in Halstead for 9 a.m. Feb. 27 at the Harvey County Courthouse in Newton.

The building’s owner, Azzy Reckess of Poughkeepsie, N.Y.-based Paz Management, has accumulated a county tax bill of $440,000, according to the county. Reckess contends the valuation is too high and has been battling to get the stated value lowered.

A buyer would not be liable for the past taxes. Neither Reckess nor anyone connected to him may bid on the complex.

The 265,000-square-foot hospital and adjacent Hertzler Clinic formed the heart of Halstead for decades before they closed in 2002.

The hospital has remained vacant since Reckess bought the complex in 2006. The smaller, but still large, clinic building hosts USA800, which runs a call center for the Kansas Department for Children and Families.

Reckess has appealed the valuation – and, therefore, he contends, the amount of back taxes – to the Kansas Court of Tax Appeals. He said he wants to hold on to the building until he can find the right buyer or right tenant, and he is trying to block the scheduled tax sale.

County Administrator John Waltner acknowledged that the impact on the sale of the pending legal action was unknown.

“If somebody buys it, they’ll buy with that understanding,” he said.

But Waltner said there is a process for dealing with this: Pay the bill as legally required, then appeal the valuation. He said local officials feel comfortable with the value they put on the complex but are ready to have that conversation.

Reckess said Wednesday that he didn’t think anyone would bid on the complex even if it goes to auction. The larger hospital building appears to be decaying.

“The property has so many issues right now that the chance that anyone will be stepping up would be very unlikely,” he said.

Waltner said that if no one bids on it, Reckess remains the owner, remains liable for the tax judgment – depending on the tax court ruling – and not much changes.

He said Harvey County has no interest in bidding on the complex because of the potential costs involved.

This story was originally published February 18, 2015 at 10:52 AM with the headline "Harvey County to sell former Halstead hospital at auction."