Family heirs ask court to give City Hospital property back to them

The old Fayetteville City Hospital property is seen on the south side of the Fayetteville Public Library in this file photo.
The old Fayetteville City Hospital property is seen on the south side of the Fayetteville Public Library in this file photo.

FAYETTEVILLE -- Some heirs of the family who donated property to the city a century ago for a hospital want their land back.

Stephen K. Stone and Amanda Stone donated the land on South School Avenue 108 years ago. Some of their heirs claim the city failed to meet the terms of the donation.

At A Glance

The Stone House

Stephen K. Stone and his wife, Amanda, bought the red-brick house at 207 Center St. in 1850 from Judge David Walker who built the house in 1845, according to a weathered historical market in the front yard. The house is now used as a office. The marker describes the Stones as “public spirited citizens” who made “handsome donations to such causes as City Hospital, the Methodist Church and Fayetteville Female Seminary.”

Source: Staff Report

At A Glance

Input Wanted

The Public Library will hold another round of public meetings to discuss a proposed expansion.

Oct. 9 — 10:30 a.m.-noon at the library. A light brunch will be served.

Oct. 10 — 11:30 a.m.-1 p.m. at the library. A light lunch will be served.

Oct. 11 — 9-11 a.m. at the Farmers’ Market on the downtown square.

Source: Staff Report

Stone family concerns could slow the sale of the property by Washington Regional Medical Center to the Fayetteville Public Library, said Tom Olmstead, general counsel for the hospital.

Washington Regional filed a "quiet title" lawsuit July 15 in Washington County Circuit Court to obtain a clear title to the property before selling it to the Fayetteville Public Library Foundation for $2 million. The city deeded the property to Washington Regional in 2011.

Jane Lipscomb Stone of Austin, Texas, and other heirs filed a response to the lawsuit Aug. 15. Her cousin, Hicks Stone III of Roxbury, Conn., filed a response Sept. 11. Jane Stone is a great-great-granddaughter; Hicks Stone, a great-grandson.

"We're looking into whether Washington Regional holds title to the land it proposes to sell," Jane Stone said last week. "We're rightly concerned."

"None of us want to own a hospital or a library," she said. "We are all upset about the terms of the trust and whether the hospital and city violated the terms of the trust."

S.K. Stone and his wife, Amanda Stone, deeded the property to the city in 1906 for the site of the city's first hospital. A second deed was executed in 1909, stipulating the property be held in trust by the city and if the property was sold the proceeds would benefit the residents of Fayetteville. The hospital opened in 1912.

Jane Stone said she first learned of the proposed sale several months ago in a letter from Olmstead. Olmstead said he sent each of the heirs he could locate a letter detailing the situation along with a copy of the proposed lawsuit before it was filed.

The library submitted a bid in summer 2013 to Washington Regional to purchase the property, said David Johnson, library director. The purchase was discussed for several months before the bid was submitted. The bid was based on an appraisal, done at the time, indicating the value of the property was $2.7 million if cleared of the buildings. The buildings were declared unusable.

R. Ray Fulmer of Fort Smith is representing the Stone family but declined to comment.

Hicks Stone III said recently the hospital is handling the matter in a heavy-handed way.

"The tactics of the medical center have managed to offend and alienate every single one of us," Stone said. "We have no intention of letting this thuggish action slip by quietly without notice, comment or opposition."

About a dozen heirs of Stephen K. and Amanda Stone have been served with a summons and details of the lawsuit. The heirs are scattered across the country. Jane Stone and Hicks Stone said they don't know the exact number of heirs. Stephen Stone died in 1909 and his wife in 1912.

Olmstead said he is sorry to learn of the heirs' disappointment about how the situation has been handled.

The documents served on the heirs are required by Arkansas law in a quiet title action, Olmstead said. Before the lawsuit was filed, he wrote letters to Hicks Stone and Jane Stone, a lawyer in Austin, Texas, to explain the complicated case and to ask their help in locating heirs. Summonses were issued and each heir has 30 days to respond.

"We've done what the law requires," Olmstead said. Once the response time expires on all the heirs who have been served, Olmstead will ask for a hearing date.

The library's plans to add an additional 80,000 square feet to the existing library hinges on the completion of the sale, Johnson said.

Kim Agee, president of the library's Board of Trustees, agreed the Stones made a significant contribution to the community when the donation was made in 1906, adding the library respects that.

"We want to honor them as well," Agee said. "The gift was incredible."

The Library Foundation agreed to buy the 2.8-acre parcel for $2 million. The land will allow the library to expand its building to the south.

Washington Regional took over City Hospital operations in 1991, Olmstead said. The facility has been vacant since closing in 2011.

The city held the property in trust until 2011 when it designated Washington Regional as the successor to City Hospital. The City Hospital board met in July 2011 and dissolved the corporation and transferred all property to Washington Regional.

Washington Regional plans to use the $2 million to help pay for an endovascular neurosurgical operating suite for treatment of strokes, Olmstead said.

Hicks Stone is the son of renowned architect Edward Durell Stone and said he spent about six months living on North Sang Avenue while he wrote a biography of his father several years ago.

He said he has no opinion on the sale of the property to the library.

"My concern is that my great-grandfather's bequest was properly handled," he said. "It was surprising to be named as a defendant in a lawsuit and surprising and stunning to be served a summons. Why didn't someone at the hospital pick up the phone and call?"

NW News on 09/22/2014

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