WHEREAS the City of North Bay, Municipality of East Ferris, Township of Chisholm, Municipality of Calvin, Township of Papineau-Cameron, Town of Mattawa, Municipality of Mattawan, Township of Bonfield, and Township of South Algonquin are part owners (member municipalities) of Cassellholme as defined by the Long-Term Care Homes Act, 2007;
AND WHEREAS Cassellholme is governed by a Board of Management;
AND WHEREAS the Cassellholme Board of Management has approved the total project cost of $121,889,390 for the redevelopment of Cassellholme;
AND WHEREAS the Province of Ontario has committed to funding up to $65 million for the Cassellholme redevelopment project over a period of 25 years interest free;
AND WHEREAS the member municipalities are obligated to participate in operating costs and financing of the redevelopment of Cassellholme pursuant to Sections 125 to 127 of the Long-Term Care Homes Act, 2007;
AND WHEREAS the Board of Management for Cassellholme suggests that Infrastructure Ontario has the best, most economical and most viable option available to Cassellholme and the member municipalities for the redevelopment of Cassellholme;
AND WHEREAS Infrastructure Ontario requires a guarantee from all member municipalities for the entire loan amount including the Province of Ontario’s share of funding for the redevelopment project in order for Cassellholme to secure the required funding under Infrastructure Ontario’s corporate loan program;
AND WHEREAS four member municipalities (Calvin, Mattawan, Mattawa, and Papineau-Cameron) have been given support from the remaining municipalities by way of Council resolution to exit the Board of Management after the redevelopment of Cassellholme;
AND WHEREAS Infrastructure Ontario requires that all member municipalities enter into an exit agreement acceptable to Infrastructure Ontario in order to obtain financing;
AND WHEREAS the member municipalities have raised several concerns related to the financing options being presented by the Board of Management, specifically having to guarantee the Provincial share of the redevelopment costs, as well as concerns with the Draft Exit Agreement and Draft Loan Guarantee;
THEREFORE BE IT RESOLVED that the Council for the Corporation of the Municipality of East Ferris agrees to enter into a guarantee with Infrastructure Ontario substantially in the form of the draft attached hereto as Appendix A with the understanding that the guarantee will remain in DRAFT format until such time as the loan is approved by Infrastructure Ontario and that all other documentation has been finalized;
AND FURTHER THAT the Corporation of the Municipality of East Ferris agrees to enter into an exit agreement with the member municipalities substantially in the form of the draft attached hereto as Appendix B.