UK HealthCare will lease and renovate the former Dillard's store at Turfland Mall to consolidate a large number of health services that now are scattered across the city, officials said Tuesday.
The Dillard's site on Harrodsburg Road offers 85,000 square feet and 900 parking spaces, according to Ron Switzer of Switzer Development, which owns the space. The former mall area between Dillard's and Home Depot would be leveled, he said.
The space will cost as much as $20 million to renovate. UK HealthCare will spent roughly $2 million a year on maintenance, operations and a 15 year lease on the property, said Darrell Griffith, executive director of the Kentucky Medical Services Foundation, the billing arm of UK HealthCare.
The new clinic is expected to open in the fall.
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The clinic will consolidate the services of UK Family and Community Medicine, which now sees patients at Kentucky Clinic on South Limestone and Kentucky Clinic South at 2400 Greatstone Point off Harrodsburg Road. Kentucky Clinic South would close under the plan.
UK's occupational medicine and environmental health service and its travel medicine clinic, both at Kentucky Clinic South, also would move to the Dillard's property.
Other services that would move into the new space include the orthopedics and sports medicine clinic now on Perimeter Drive. The current office would close.
Additional outpatient clinics and services might be moved there later, according to UK. It has not been determined how the space freed up at Kentucky Clinic on South Limestone would be used.
University of Kentucky President Eli Capilouto called the new clinic "a kick-start" in the redevelopment of the Turfland Mall property, which opened in 1967 and was Lexington's first enclosed shopping mall.
"The most important excitement is for the patients we serve," Capilouto said.
The Dillard's plan mirrors mall redevelopment projects elsewhere in the United States, Randall said, and it allows UK HealthCare to improve access to care.
Mayor Jim Gray praised the "adaptive reuse of this suburban development," calling it "very inventive."
"We are blessed as a university city," Gray said.
In August, state economic development officials gave preliminary approval for state tax incentives for an overhaul of Turfland Mall as a mixed-use development that would have included office, retail and restaurant space. A second option would have included a senior center, but the city selected a location in the Idle Hour neighborhood.
Switzer said Tuesday those plans no longer were being considered.