County of Haliburton CAO Gary Dyke told council March 12, Haliburton Highlands Health Services (HHHS) is looking for County help to secure financing for 32 per cent – or $16 million – of the $49 million expansion of Hyland Crest LTC home in Minden.
Dyke said $33 million, or 68 per cent, would come from the province.
He said the County is eligible to secure an Infrastructure Ontario loan to support the project. He said HHHS would cover loan costs.
“The funding support option … provides an opportunity to support the expansion of LTC services with limited impact on County finances, while also providing significant savings for HHHS in the overall financing costs for the project,” Dyke said.
He did say they looked into what it would mean for the County’s borrowing capacity. He did not anticipate an issue, saying they would still be able to borrow $30-35 million after a loan for HHHS.
HHHS has requested a letter of support from the County.
Coun. Lisa Schell said she was asking a question on behalf of the public; “what if they don’t make their payments?” Dyke said the terms of default would be identified in the agreement.
Coun. Bob Carter said it was early days with no information on what HHHS requires for water and sewer and what the municipality will have to do to provide that. “Although their number is $50 million right now, I think that number is probably a bit speculative. So, what happens if it goes to $60 million and they need $26 million? What is it that we are agreeing to at this point, because this is the money of our constituents…”
Dyke reiterated none of the $16 million would be paid for by the County. He said they were highlevel costs and estimates only. As for servicing, there are other avenues of funding, he said. Dyke noted staff just wanted authorization to develop an agreement. They would wait to see if HHHS is approved, and for final costing before providing a recommendation. He added the County underwrote $6 million in loans when the two hospitals were built.
Coun. Murray Fearrey said it was “a huge leap of faith” and he is looking forward to more details.
Deputy warden Liz Danielsen added, “while there is some risk associated with this, the alternate risk is even greater to us…that is if HHHS defaults on their ability to move forward with long-term care, it lands in our lap, and to me that is a huge risk for us.”
Dyke said all final paperwork would come back to council prior to passage.
Coun. Cec Ryall said he was in favour and hearing that, “all of our questions are either being answered, or are going to be answered, before this is done. I think we should just proceed with it, wait for the report to come back and make a decision at that time.”
Council voted in favour of Dyke’s recommendation; that he be directed to prepare a draft financing agreement between the County of Haliburton and Haliburton Highlands Health Services (HHHS) for the proposed expansion and consolidation of the HHHS long-term care facilities for Council’s review and consideration; and further that the warden, on behalf of County council, is authorized to issue a letter of support to HHHS.
