TALLAHASSEE, Fla. (WCTV) – With the deadline for a signed TMH-FSU lease having passed, Florida State University will become the landlord of Tallahassee Memorial Hospital unless Tallahassee Memorial Healthcare and FSU agree to a new lease.
During the process of transferring the hospital assets, it was established through an approved Memorandum of Understanding that an FSU Health board would be created, but only if a new lease was signed.
Without that lease, FSU would simply assume the City of Tallahassee’s position and act as the landlord. Privately, officials for both TMH and FSU say the deal will get done, though the parties previously told the city commission none of the 17 “definitive agreements” had yet been inked.
The lack of lease also makes it unclear whether FAMU and TSC will actually have a seat on the board, a primary request of Commissioner Diane Williams-Cox, who voted for the deal.
An independent lawyer WCTV previously spoke with said there was an “unusual” provision in the transfer agreement between FSU and the city because it waives a requirement that a lease be agreed upon before the hospital is transferred.
More Tallahassee news:
The April 1 deadline being missed does not prevent the deal from closing, which is expected sometime within the next several months.
On page 20 of the proposed transfer, the language in question reads: “FSU and TMH shall have agreed upon a final version of the FSU-TMH Amended and Restated Lease, provided, that if FSU and TMH have not agreed upon a final version of the FSU-TMH Amended and Restated Lease by April 1, 2026, this condition shall no longer be applicable and automatically removed as an obligation to close.
You can read the full Transfer of Assets Agreement below:
FSU is set to be at least the landlord as the city already formally voted to transfer the hospital.
A week ago, the FSU-TMH transfer was approved by the Florida Board of Governors after Tallahassee Commissioners approved the agreement in a 3-2 vote.
Under the terms of the deal, FSU will pay the City of Tallahassee $109 million over thirty years as the sale price for the hospital. FSU also agreed to $250 million for facilities and research.
The deal is now being closed at the staff level and does not require any further votes by elected or appointed officials.
To keep up with the latest news as it develops, follow WCTV on Facebook, Instagram, YouTube, Nextdoor and X (Twitter).
Have a news tip or see an error? Write to us here. Please include the article’s headline in your message.
Be the first to see all the biggest headlines by downloading the WCTV News app. Click here to get started.
Copyright 2026 WCTV. All rights reserved.