Council Grants Zoning Variances for OHH

The Olney City Council approved a series of zoning measures on Aug. 25 to accommodate construction of the new Olney Hamilton Hospital, clearing the way for the $33-million project to stay on schedule.

Council members unanimously approved a special use permit allowing the hospital district to build the new facility on land across the street from the existing hospital. Although the property had long been zoned residential, City Attorney Bill Myers explained that the zoning ordinance allows hospitals to operate in residential areas if granted a special permit.

Mr. Myers noted that the hospital began preliminary site work in June but was required to go through the full zoning process, including notifying neighbors and holding public hearings. “They can’t build the building they’re proposing without a permit,” he told the council.

Olney resident Cindy Moore questioned why the permit was coming so late in the process, but Mr. Myers said the hospital district had followed proper procedures once they realized the permit was necessary.

The council also approved an ordinance to narrow a portion of Hamilton Street’s rightof- way near the construction site. Engineers said the change would not affect the active roadway or utilities but would allow the hospital to use a strip of land between the curb and sidewalk for the project.

Mr. Myers recommended “narrowing” rather than abandoning the right-of-way entirely to avoid potential legal challenges under state law. The ordinance includes a perpetual easement allowing the city continued access if needed.

In a third hospital-related action, the Council authorized the donation of the City-owned land beneath the existing hospital to the Olney Hamilton Hospital District.

City Attorney Dan Branum explained that the property had originally been gifted to the City with the stipulation that it be used for hospital purposes. Deeding it to the hospital district will allow the district to pursue grants and tax credits to renovate or repurpose the aging facility, including preserving the two-story historic section.

The transfer includes “reversionary rights,” ensuring the land reverts either to the City or to the original donors if it ever ceases to be used for hospital purposes.

Hospital board chairman Dale Lovett said the move is essential to secure funding: “By owning it, we have the ability to seek the grants and funds to repurpose the older sections for modern use, while preserving their historic character.”

The Council approved all three measures with no opposition. City officials said the actions were necessary to keep hospital construction on its tight timeline. Engineers and attorneys will now finalize surveys, deeds, and filings with Young County.