Southeast Kansas Mental Health Center intends to sell its 3-acre parcel at 1406 East St. in Iola, recent board meeting minutes show.
The land, which lies between Sigg Tire & Repair and the Veterans Affairs clinic, is valued at $112,700. During the board’s May 26 meeting, board member David Lee, who is also an Allen County commissioner, moved to authorize $500 to obtain a building layout drawing for the purpose of selling the property. The motion passed unanimously.
Board meeting minutes were made available to the Register by the board’s attorney, Jacob Bielenberg. Minutes from the board’s June meeting were not released.
The mental health center purchased the property in June 2022 with plans to eventually build a new main clinic for the nonprofit. At the time, the center was rapidly expanding, doubling its staff over the prior two years and expanding services aligned with its new designation as a Certified Community Behavioral Health Clinic.
Four years later, the center finds itself in a much different place. It has almost a completely new board of directors and replaced much of its leadership team. Just this year, SEKMHC has implemented pay cuts and layoffs, closed its Mound City office, and sold both Ashley Clinic and Yates Center Dental practices.
SEKMHC is also the owner of 1305 E. Monroe in Iola, a thin strip of land between 1406 East St. and Sigg Tire & Repair. That one-acre parcel, which lies immediately south of Iola Elementary School, was purchased by USD 257 in August 2023. At the time, the school district discussed plans for an indoor recreational facility. The mental health center bought the land from the school district in March 2024.
It remains unclear if the SEKMHC board intends to put the 1305 E. Monroe property up for sale as well. Its current value is $53,550.
In addition to those two parcels, the mental health center owns land at its Humboldt and Iola offices. It is currently leasing the former Iola Ashley Clinic location at 401 S. Washington Ave. to Neosho Memorial Regional Medical Center, which purchased Ashley Clinic from the mental health center earlier this year.
THE MAY 26 board meeting lasted about four hours, but over two of them were spent in executive session. During open session, the board offered Dr. Doug Wright the executive director position. Wright has served as interim CEO and Chief Operating Officer since January, when former director Nathan Fawson was placed on administrative leave amid controversy over executive team compensation.
The offer was made contingent upon the successful negotiation and approval of an employment contract. When asked if that process had been completed, Bielenberg said negotiations are still ongoing, but “there is not yet a signed agreement.”
