Porter Health System’s Valparaiso Campus to Become Valparaiso University Property

VU to significantly expand when Porter relocates to new 445,000-square-foot hospital

Porter Health System has entered into a binding agreement with Valparaiso University to sell five tracts of land that comprise Porter’s downtown Valparaiso Hospital Campus. The properties total approximately 13 acres located between Lincolnway, Monroe Street and Garfield Street, and are adjacent to the University’s campus.

“Identifying the location for our new, state of the art hospital and a new location for our system’s headquarters was certainly an important decision for our organization,” said Porter Health System Chief Executive Officer Jonathan Nalli. “Ensuring the highest and best use for this great property- which has served as home for our Valparaiso hospital for almost 75 years and birthplace for four generations of Porter County residents- was an equally weighty decision. We could not imagine a better partner for this venture, nor could we conceive of a better legacy for this land,” said Nalli.

“The purchase of this property is a strategic investment for the University that is directly aligned to the Strategic Plan and supports its growth objectives,” said Valparaiso University President Mark A. Heckler. “The acquisition of this land will ensure that the physical environment of the campus supports the expansion goals of the University while creating even deeper connections between the University and the City of Valparaiso on the north side of the campus.”

“We are thrilled with the relationship we’ve built with Jonathan and Porter over the years, and the university,” stated Valparaiso Mayor Jon Costas. “We look forward to continuing to make sure [the redevelopment of] these parcels are serving the university and community well.”

Though terms from the agreement will not be released, the hospital must complete construction of its new facilities, transfer patients, vacate the current location and demolish the existing hospital building before the land can be fully transferred to the University. The obligation of each party to close the transaction is also subject to customary terms and conditions.

Construction is expected to be complete on Porter’s new hospital in late 2012. The facility is located on approximately 105 acres at the intersection of Routes 6 and 49, and will feature 225 private inpatient rooms, 36 outpatient rooms, and a physician office building of approximately 52,000 square feet. The project is anticipated to generate as many as 600 jobs over the course of construction, generating millions in economic impact.