http://bluegrasspolitics.bloginky.com/2009/04/21/new-eastern-state-hospital-on-track/

LEXINGTON — The state will begin construction in 2010 on a new Eastern State Hospital at Coldstream Research Park, state officials told the Urban County Council on Tuesday.

“We are going to end up with a first-class, state-of-the-art facility for our folks who need treatment for mental illness,” Gov. Steve Beshear told the council on Tuesday.

Beshear’s historic appearance at the Urban County Council’s work session was to urge the council to approve a unique funding agreement that would allow the city to issue bonds for the project but the state would pay the bond off. The total cost for the project is $129 million. The council unanimously agreed Tuesday to put the financing agreement on the agenda for its first reading at Thursday’s council meeting.

Beshear is believed to be the first sitting governor to appear before the city council.

If the funding agreement is approved, Eastern State would move from its campus on Newtown Pike to the University of Kentucky Coldstream Research campus. Bluegrass Community and Technical College would move from UK’s Lexington campus to Eastern State’s present location. UK, in exchange, would get BCTC’s old buildings on Cooper Drive and additional parking.

Eastern State is the second-oldest psychiatric hospital in the country and its replacement has been on the state’s “to-do” list for years. But lack of funding has stalled the project. It was during the 2008 legislative session that the unique agreement between UK, BCTCs, the state and the city was brokered.

Administration and Finance Secretary Jonathan Miller said Tuesday that the construction costs for the new building will be $90 million. The additional $39 million of the $129 million will go toward design, moving and equipment costs.

The council will likely vote on the agreement next month. It is expected to pass without opposition.

Mayor Jim Newberry touted the agreement as a way to spur economic development. With BCTCs moving into space now occupied by Eastern State, a higher educational triangle between UK, BCTCs and Transylvania University would be formed.

Construction is expected to begin sometime in May 2010 with substantial completion of the facility in 2012, Miller said. The facility will have expanded outpatient services and will also add other psychiatric treatments currently not available at Eastern State, state officials said.

– Beth Musgrave