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Former Montgomery County Hospital
site could see $12M renovation
Catherine Dominguez.

Jason Fochtman, Houston Chronicle / Staff photograph

Almost three years after the city of Conroe shuttered the dilapidated former Montgomery County Hospital, a Kansas-based developer is proposing new life for the large structure as apartments for budget strapped seniors.


Almost three years after the city of Conroe shuttered the dilapidated former Montgomery County Hospital, a Kansas-based developer is proposing new life for the structure as apartments for budget-strapped seniors.

Overland Property Group is planning the renovation of the 57,000-square-foot building that most recently served as the East Texas Dream Center.

In June 2018, East Texas Dream Center founders and owners of the building Shawn and Shannon Nelson, were issued more than 700 fire code violation along with 170 building code violations following a fire at the building May 18. Firefighters were able to contain the smoke and fire to the electrical panels and wiring. However, while in the building fire officials began to notice many violations. That, Conroe Fire Marshal Steve Cottar said, triggered a call to the city code enforcement department.

According to Cottar, the building has numerous safety concerns from asbestos, lead-based paint, electrical and structural problems and many rooms with padlocks on the outside and padlocks on exit doors. At that time, both water, sewer and electricity were disconnected at the building.

In early 2020, the building was listed for sale for more than $1 million.

However, during the council’s workshop meeting Wednesday, President and CEO of Overland Property Group Brett Johnson said he was aware of the building’s history and current condition. He presented a plan to renovate the historic building into one- and two-bedroom apartments for qualified seniors.

The $12 million project is dependent on the approval of low-income housing tax credits. Those credits provide a tax incentive to construct or rehabilitate affordable rental housing for low-income households. The tax credits subsidize the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants.

“The plans are very preliminary,” Johnson said noting the plan does not include any new construction.

Johnson said his firm has completed 65 projects since launching the business in 2002. He noted 19 of the projects are in Texas.

Dubbed The Landmark, the renovation would be three stories with 45 units ranging from 750 square feet to just over 1,000 square feet and rent between $550 and $900. About five of those units, Johnson added, would be market rate at about $1,000 to $1,100.

The council was supportive of the project.

“There is a lot of history there,” said Mayor Jody Czajkoski. “I have walked through the building before and structurally its in good shape.”

Councilwoman Marsha Porter said historically, the council has not been supportive of projects like the one proposed by Johnson. However, Porter and Councilman Duke Coon said seeing the building back in use is better than it sitting and continuing to deteriorate.

“It would sure be nice to see something happen with that building at zero cost to the city,” he said.






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Page Modified: 06 September 2021