County board to get first look at proposal for sale of nursing home

County board to get first look at proposal for sale of nursing home

URBANA — Champaign County Board members will get their first review tonight of the proposal for the sale of the county-owned nursing home.

The agenda for the board's committee-of-the-whole meeting includes an item calling for the release of a request for proposals for a privately owned firm to buy the 12-year-old facility in east Urbana. If the board approves the RFP this month, the sale of the home could be completed this winter.

But that's only if 15 of the board's 22 members agree to sell it.

County voters in April approved a ballot measure authorizing the county board to sell the financially troubled facility. But many Democrats, who comprise a majority of the board, have voiced either opposition or skepticism about selling.

The proposed request for proposals for the sale of the facility carries a number of stipulations:

— A minimum purchase price of $11 million.

— That the purchaser assume the existing collective bargaining agreements at the home with the AFSCME employee union.

— That the purchaser agree to rehire all existing employees who pass a background check and not terminate 10 percent or more of the employees within the first 60 days following the closing date of the sale and no more than 20 percent in the first six months after the sale.

— That for at least 10 years, priority for admissions must be given to Champaign County residents and that for at least 10 years, a minimum of 50 percent of the facility's long-term-care beds should be set aide for Medicaid patients.

— That the purchaser must detail how it would work with and be accountable to the public.

— That the sale of the building is "as is" and that the county makes no representations or warranties as to the condition of the nursing home.

— That the purchaser agrees to maintain a skilled nursing facility with 220 beds until Dec. 31, 2027.

The marketing of the nursing home is being handled by Chicago real-estate brokerage firm of Marcus & Millichap.

A timeline accompanying the request for proposals shows they would be due Dec. 22 and that selection of the qualified buyer would be accomplished between Jan. 8 and March 1, 2018.

According to a report from county Auditor John Farney, the nursing home owes a total of nearly $3.5 million, including more than a $100,000 to at least seven vendors. It also owes various county government funds nearly $2 million.

The county board's committee-of-the-whole meeting will begin at 6:30 p.m. Tuesday at the Brookens Administrative Center, 1776 E. Washington St., U.

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Pointblank wrote on October 10, 2017 at 8:10 am
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Selling the nursing home at $11 million will be just what the Sheriff needs to build his Satellite Jail expansion. 

Citizen1 wrote on October 10, 2017 at 12:10 pm

Those that don't want to sell should just call PACA. 

pattsi wrote on October 10, 2017 at 1:10 pm

Clarification once again--the total debt service against the nursing home is 7M and counting. So even if there could be a 11M sale,  the difference of 4M does not build a new jail.  Gotta love fake information. Seems this not just happen on the federal level.  :-)

BruckJr wrote on October 10, 2017 at 1:10 pm

I can't imagine anyone choosing to buy the place with all of these conditions attached.  Those conditions represent the very reasons why it is going belly up in the first place.  It seems pretty clear that the Dems want to hang onto the place and have gone to great lengths to make sure that no one else will want it.

787 wrote on October 10, 2017 at 2:10 pm

County Board member Josh Hartke needs to buy it.

rsp wrote on October 10, 2017 at 5:10 pm

Those aren't very extreme requests. The only one that stands out to me is the 50% medicaid population. Considering the difficulty getting the state to pay that will probably end up being debated but it needs to be listed. Otherwise it could end up at zero. It's standard to list a building as is and protecting employees is not uncommon.

aantulov wrote on October 10, 2017 at 7:10 pm

The purpose of government is to serve the people not profit.

 

Thewatcher wrote on October 12, 2017 at 2:10 pm

Funny that they put all of these restrictions on the sale when the county couldn't adhere to any of those to save their lives.

pattsi wrote on October 12, 2017 at 9:10 pm

Unfortunately, Mr. Kacich did not point out in the article that the stipulations included are very common for this type of sale. If one took time to look at examples of other nursing home sale documents, one will see these included. The broker quided the content based on his experience marketing the sale of nursing homes.

To respond to another comment, it has never been part of any conversation about the nursing home that the home is to make money for the county. The conversation has always focused on the home being sustainable and income needs to cover all associated expenses to maintain and run the home.

This is an opportunity to clear up the misinformation that exists connected with the nurisng home.

pattsi wrote on October 12, 2017 at 10:10 pm

Duplicate

pattsi wrote on October 12, 2017 at 9:10 pm

Duplicate