A former Sherman hospital may soon see new life through commercial and residential redevelopment.


Developer Covenant Development plans to present a replat for a former hospital site at 1111 Gallagher Drive to the Sherman Planning and Zoning Commission. The hospital former operated at Medical Plaza Hospital and Community Specialty Hospital, but has been mostly unoccupied for several years.


"When you think of what it is now and what it could be and what it could do for the city, it is going to be one of the biggest projects we look at over the course of the next year," Community and Support Services Manager Nate Strauch said.


The request, which represents one of the early steps toward redevelopment, calls for the former hospital site to be broken up into two lots for commercial and residential development.


Strauch said the primary use for the property will be for multi-family housing, with some commercial space on the secondary lot.


"Looking at the surrounding uses, you’d think that it would likely be medical, because there are so many in that area already," Strauch said. "However, it is also near Sherman Town Center, so there is a wide variety of uses for it."


In an email to the Herald Democrat, Covenant Development CEO Ryan Johnson said there would likely be some of residential in the development, with adjacent office buildings.


"If everything works out on the topo (topography) side, we plan to do develop office buildings with some form of residential adjacent to the office," he said. "However, all this is very preliminary."


The project was briefly, albeit indirectly discussed during May’s city council retreat in which the city discussed the possible expansion of the Tax Increment Reinvestment Zone that currently encompasses the Sherman Commons and its developments. Possible plans to extend the footprint of the zone so that funds raised in the zone could be used to re-mediate the property.


Strauch said that the hospital would need asbestos abatement prior to redevelopment, and these funds could potentially be used for that purpose.


"They are working through the process on the private side of things while we are working through the process on the public side of things to have this tract of land drawn into the TIRZ," he said.


The request will be included in Tuesday’s 6 p.m. P&Z meeting as a part of the consent agenda, which represents routine or non-controversial items voted on collectively without individual discussion.


Other items that will be discussed a request by Best Pawn to open an indoor shooting range at 6400 Texoma Parkway.


Michael Hutchins is the local government reporter for the Herald Democrat. He can be reached at mhutchins@heralddemocrat.com.