Kadlec buys old Payless property

Kadlec Regional Medical Center in Richland has bought six acres on the 1200 block of Lee Boulevard in Richland, including the old Payless building.

The property also includes the building that houses the Oasis School and also was the temporary home of the Richland Library last year while the library expanded its Northgate Drive building.

The $1.85 million purchase includes almost 100,000 square feet of building space and 400 parking spaces.

Kadlec has had its eye on the property for several years, originally thinking it would tear down the 1969 buildings, said Jeff Clark, vice president of human resources and planning.

But the hospital's growth has given it an immediate need for the buildings, which are in good shape structurally, he said. As soon as this summer, office staff could move into it.

The 24,000-square-foot building that temporarily housed the library eventually could provide office space for 100 to 150 workers. Some renovation would be required, including improvements to its heating and cooling system.

The parking area would be used not only for Kadlec workers at the Lee Street buildings, but also for additional workers in a year or so. Kadlec already has a shuttle system to ferry workers back and forth to its main hospital building.

The former Payless building, which has loading docks, will be used for additional warehouse space for the hospital in a year or two. Kadlec has a lease for warehouse space in West Richland so it does not have an immediate need.

The Payless building will require more improvements before it is used to house medical and office supplies, Clark said.

Kadlec also plans to spruce up the exterior of the buildings.

Oasis School is on a month-to-month lease and will be allowed to finish the academic year, but then will have to move.

School officials have looked at several Tri-City buildings in their search for a new site, said Peggy Hamilton, Oasis School administrator, and hope to settle on a place soon. The private, independent school for students in kindergarten through eighth grade has about 20 students.

Patient demand at Kadlec is near capacity, with occupancy more than 90 percent at times this year, which is well over the state Department of Health's target of 70 percent occupancy for a hospital.

It has added more than 300 employees over the last year to care for more patients, bringing total staff to more than 2,000. It already is leasing office space near the hospital.

The Payless building, which housed Rite Aid for a time after it bought the Thrifty Payless chain, has not been used for several years.

The property that Kadlec purchased also was used for a time as a Suzuki dealership and, more than a decade ago, by Pasta Mama's.

Kadlec purchased the property from the Moore Family Trust of Spokane, which had managed the property through Washington Trust Bank. Kiemle and Hagood Co. of Spokane was the agent for the sale.

-- Annette Cary: 582-1533; acary@tricityherald.com.