TALLAHASSEE, Fla. (WCTV) – City hall watchers, advocates, a city commissioner and a contracts lawyer said Wednesday that the proposed agreement to transfer Tallahassee Memorial Hospital to Florida State University (FSU) contains an \u201cunusual\u201d provision that waives a requirement a lease be agreed to before the hospital is transferred.<\/p>\n
City Commissioner Jack Porter said the language, found on page 20 of proposed \u201cTransfer of Assets Agreement,\u201d means that even if Tallahassee Memorial Healthcare (TMH) and FSU don\u2019t agree to a lease, the hospital could still be transferred at the city\u2019s discretion.<\/p>\n
A contracts lawyer unaffiliated with the deal, who requested anonymity to speak in a personal capacity instead of on behalf of his firm, said the provision was \u201cunusual\u201d and signaled that city hall leaders potentially want the hospital transferred with or without a set structure for the new \u201cFSU Health\u201d board.<\/p>\n
\u201cIf the city really wants this lease, then this language is kind of weak,\u201d the lawyer said.<\/p>\n
Dr. Bruce Strouble and Tallahassee ALERT first called attention to the provision of the proposed agreement on Monday night. They held a press event on Wednesday in front of Tallahassee City Hall.<\/p>\n
The language in question reads: \u201cFSU 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.\u201d<\/p>\n
According to a public transparency portal<\/a> the city setup for FSU Health related documents, FSU and TMH had not yet agreed to a new lease as of February 23, 2026.<\/p>\n More Tallahassee news: <\/p>\n The two organizations announced a landmark deal to create a new academic health center, known as FSU Health, in September of 2025. <\/a>Supporters say the deal requires FSU Health to continue indigent care, and will bring in better doctors and keep med school talent in town.<\/p>\n Plus, they\u2019ve argued a capital city should have an academically affiliated hospital, and that FSU and TMH have long sought to form a partnership.<\/p>\n The deal has hit a snag, though. About a month after the deal was announced, a TMH spokesperson said the non-profit would not agree to any board structure<\/a> that saw the state appoint a majority of members of the FSU Health board. So far, FSU and TMH have agreed to give Florida A&M University <\/a>one of FSU\u2019s seats, but a proposal to give Tallahassee State College one of TMH\u2019s seats has so far been rejected.<\/p>\n That leads Strouble, Porter and others to wonder what might happen if the impasse remains when April 1 rolls around. <\/p>\n According to a proposed lease in the city\u2019s transparency portal, which has not been signed, TMH would retain 9 seats while FSU would retain 8.<\/p>\n Porter believes a lease deal will likely be struck, though she takes issue with how rushed the process has been.<\/p>\n She added that without a lease, she presumes FSU would simply become the landlord, making a partnership creating FSU Health less likely.<\/p>\n WCTV reached out to spokespeople for TMH, FSU, the City of Tallahassee, all four city commissioners and Mayor John Dailey. As those statements roll in, we\u2019ll update our article below.<\/p>\n You can read the full Transfer of Assets Agreement below: <\/p>\n Tune in to Eyewitness News at 5 and 6 for the full story. This story will also be updated this evening with more details. <\/p>\n To keep up with the latest news as it develops, follow WCTV on Facebook<\/a>, Instagram<\/a>, YouTube<\/a>, Nextdoor<\/a> <\/a>and X<\/a> (Twitter<\/a>).<\/p>\n Have a news tip or see an error? Write to us here<\/a>. Please include the article\u2019s headline in your message.<\/p>\n Be the first to see all the biggest headlines by downloading the WCTV News app. Click here<\/a> to get started.<\/p>\n Copyright 2026 WCTV. All rights reserved.<\/p>\n