WHEREAS the Corporation of the Municipality of East Ferris received report “Redevelopment Update for Municipalities – November 30th, 2020” from Cassellholme on December 10th, 2020;
AND WHEREAS the said report recommends that each member municipality of Cassellholme confirms their preferred method of financing the redevelopment project from two presented financing options:
Option 1 – Cassellholme will obtain financing through Infrastructure Ontario’s Corporate Loan Program, levy member municipalities annually for their share of the capital costs and requires member municipalities to guarantee their share of the entire project value.
Option 2 – Member municipalities pay upfront in cash or obtain their own financing and provide the funds to Cassellholme on completion of the project and requires member municipalities to guarantee their share of the project.
AND WHEREAS the Council for the Corporation of the Municipality of East Ferris passed Resolution No. 2017-94 on April 6th, 2017, along with other member municipalities, and provided Cassellholme with a copy of the said resolution;
AND WHEREAS upon review of the financing options being recommended by Cassellholme and the request from member municipalities to guarantee Cassellholme’s loan, the Council for the Corporation of the Municipality of East Ferris deems that the financing options being recommended are not in line with the resolution passed in 2017 which stated that “Council supports the request for legislative changes to allow the Cassellholme Board of Management to borrow the necessary funds, on its own, to complete the redevelopment project and repay the debt using a combination of capital subsidy payments by the Ministry of Health and Long-Term Care as well as revenue from operations and the annual levy to the municipalities in proportion”;
AND WHEREAS Council of the Municipality of East Ferris stated in Resolution No. 2017-94 that prior to approval of the redevelopment project, the following information, all of which remains outstanding, be provided by the Cassellholme Board of Management to member municipalities:
- A comprehensive business case;
- The final architectural design;
- A current cost estimate;
- A detailed financing plan which shall include the interest rate, payment schedules or the lump sum payment options for each of the municipalities involved; and
- Confirmation that the Province will advance the funds, up front for the redevelopment of Cassellholme.
BE IT HEREBY RESOLVED that Council of the Municipality of East Ferris continues to support the redevelopment of Cassellholme; rejects the proposed financing options being recommended by Cassellholme; and seeks new financing options that are in line with Resolution No. 2017-94, and excludes member municipalities assuming Cassellholme’s long-term debt and/or providing municipal guarantees of any form including letters of credit;
AND FURTHER that Cassellholme provides member municipalities with the said outstanding information;
AND FURTHER that a copy of this resolution be sent to all Cassellholme member municipalities.