The hospital is preparing to offer the care center land at the hospital’s new site, said Dorothy Gunderson, chairwoman of the Edgerton Hospital and Health Services Board. She declined to comment on terms of the offer.

Marilynn Perry, administrator of the Edgerton Care Center, has heard discussions about the offer and hopes it will be acceptable to the care center board, she said.

“It all depends on the location of the land (on the site),” she said. “It depends on how much work is required in the preparation of the land.”

The care center, a 61-bed nursing home on two floors of the hospital, was officially part of the hospital when the hospital bought 70 acres along Highway 59 for a new facility. The plan was to construct separate buildings for the hospital and care center.

But the care center and hospital became two entities in 2008. The care center started looking for an alternate location for its new building last year when it couldn’t agree with the hospital on terms for land at the new site.

That disagreement might be put to rest soon, officials said.

The hospital board has agreed on terms to offer the care center, Gunderson said. It hopes to make the offer within a week.

But any offer would be contingent on approval by the U.S. Department of Housing and Urban Development, which is financing the hospital’s $26 million building. HUD announced the hospital will receive the loan in December, but it hasn’t officially given the loan yet.

If an agreement is reached, the hospital and care center won’t make the terms public until the loan is finalized, Gunderson said.

“Just as long as the two groups continue to work together so we have a good outcome for everyone, that’s the most important for the community,” Gunderson said.

Earlier offers from the hospital weren’t acceptable to the care center, Perry said.

The hospital originally offered to lease land on Highway 59 to the care center, but the terms weren’t acceptable to the U.S. Department of Agriculture. The care center hopes to finance its $6 million to $7 million building through the USDA.

Then the hospital offered the care center 3.4 acres at its old site on Stoughton Road, Perry said. But that would have required the care center to redesign its plans to fit a smaller space.

Plus, no one knows what will happen to the existing hospital building, Perry said.

“We feel that is not an appropriate placement,” she said.

Care center officials believe the hospital should give the center land at the new site, she said.

“We feel pretty much that the (money for the) land was donated for both projects,” she said.

The proposed agreement will waive rent for the care center at the existing building through March, Gunderson said. The hospital has waived rent since the two organizations split, but in 2009 it told the care center it would start charging rent in 2010.

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