Plans for a brand new, $94.7 million long-term care home are well underway. The new build will replace the existing H.J. McFarland Memorial Home.

Director Kyle Cotton and County CAO Marcia Wallace told Council last week they had met all the right milestones for substantial provincial funding for the project. Nonetheless, the costs are high.

In October, Council must decide whether to proceed. A final report will come then, just prior to the Ministry of Long-Term Care’s “Approval to Construct” milestone, November 8.

A site plan for the County’s new LTC home. (HDR Image)

Ministerial approval for the project involves confirmation of debt-financing through Infrastructure Ontario (IO). Nearly two thirds of the cost of the new home, or $60 million, will be offset by provincial Construction Funding Subsidy payments amortized over 25 years — but they only start once the home is occupied.

There are other levers to diminish the impact of the cost. $2.3 million can come from Development Charges. Council is also calling for Expressions of Interest for the current McFarland Home property, valued at $4.2 million.

While most of the cost of the project will be subsidized over the next two and half decades, the County must still debenture $80 million to cover upfront construction costs. With the Infrastructure Ontario interest rate hovering around 4.7 percent, that means $3.07 million per year over the first three years must be covered by the County.

The new home

The two-story, 160-bed residence will have five distinct wings and over 126,000 square feet of space. Each wing will house a 32-bed “resident home area” (RHA). Three home areas and a large common area are on the ground floor, and two other resident home areas are on the second floor.

Administration offices, staff, and facility areas are centrally located on the ground floor and connected by an interior Main Street, the facility’s central hub. Visitors will be greeted here and residents will gather for programming. Building services, additional storage, and a classroom are in the basement.

The grounds provide outdoor amenity spaces and other natural elements to invite residents out, allowing for participation in activities and programming on a barrier-free site with accessible walkways and pathways.

Unlike the existing Memorial Home, the up-to-date facility will either meet or exceed all current provincial regulations — as well as the municipality’s legal obligation to operate a Long-Term Care home.

Up next is tendering for construction bids. The municipality will call for tenders over six weeks starting August 23. Once a qualified bid is accepted, the final package goes to Ministry officials for approval late this year. Construction would start in the new year and occupancy could be as soon as 2027.

The DEBATE

Councillor Phil St-Jean is a staunch proponent of the project, despite its expense. He reminded fellow councillors that the 76 beds were not new, but in fact, were being returned.

“The province didn’t really give us anything, it just gave us back what we lost,” he said. “Given the aging demographics of our community, this should have happened 10 years ago. This is critical to our community. It’s a huge price tag, we’ve known that for some time — but it is also a no-brainer.”

In June of 2019, former Minister of Long-Term Care Merrilee Fullerton came to the H.J. McFarland Home to announce that the municipality could begin the process of planning to renovate or replace the original 84-bed facility built in 1976 with one double that size. The increased tally replaced 76 beds removed from the community after the Ministry closed Picton Manor in 2012.

Deputant Dorothy Bothwell noted that while the square footage of the new home has been creeping up over the planning cycle, the projected costs have remained static. Initially planned with a 114,000 square footage in 2023, Mr. Cotton presented plans for 126,000 square feet Tuesday night.

In 2023, each square foot cost $623. Yet estimated costs haven’t kept pace with the increased space, which adds an additional $7.5 million to the project. Ms. Bothwell also wondered if increased annual costs for operations and staffing for a larger home had been factored.

The County is soliciting resident input for the 2025 Budget and a Have Your Say survey asked for priority levels on 19 different services, including Long Term Care. Ms. Bothwell reckoned seeing loved ones cared for in a safe and modern facility was important — but those taking the survey weren’t asked whether they were willing to incur a 2-3 percent tax levy hit over three years to see it happen.

“Public engagement on the budget needs to be much more fulsome with details on where spending is expected to impact the 2025 budget — not just a survey on priorities without any meaningful meat to it,” she said.

CAO Marcia Wallace noted the added levy pressure is on the agenda for preliminary budget meetings in August. Staff are waiting for input from all departments before determining how best to deal with the project’s financing.

Care Home for Sale

A new Long Term Care Home will create debt. A lot of it. About two-thirds of the cost of the $94 million project will come from the province. The rest, over $30 million, will have to be covered by the municipality. One revenue stream could come from the sale of the existing H.J. McFarland home. The 6.4 acre parcel has been appraised at $4.2 million. Built in 1976, the home was designed by renowned Canadian architect Ron Thom.

Staff will pursue an Expression of Interest (EOI) process to explore opportunities for the sale of the existing Home. Recommendations will come later this fall.

Director of Housing Adam Goheen notes an EOI process seeks proposals that will protect the heritage value of the existing building, while addressing much needed new uses, such as housing, healthcare, or childcare. He explained an EOI process would be broad and non-binding, while the zoning of the property offers various opportunities.

The H.J. McFarland Memorial Home was built in 1976 and designed by renowned Canadian architect Ron Thom. (Jason Parks/Gazette Staff)

These include enhanced community services in housing, healthcare and medical, services for older adults, education and childcare, or some combination of these. The County will solicit interest from private, not-for-profit, or other government entities in the acquisition and operation of the property for the benefit of the community.

Discussion also involves the prospects for re-use and includes ideas such as affordable housing, child care — or municipal office space. County CAO Marcia Wallace said child care options for County staff employed by the new Care Home were intriguing.

“The site can be segregated for various uses. Any combination of ideas could come together to preserve this unique building while meeting the needs of the community,” she said.

She stressed Council’s concern with the cost of the build and noted Director Goheen’s report responded to those financial stressors.

“There are ways to generate funds to defray those costs.”

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