County takes short-term pain for long-term gain on GPL debenture
Looking at terms for the $96.7-million, the province has given the county the option of changing from a 25-year term to a 20-year term. The shorter term will mean slightly higher payments, Nitsch said, “but the benefit is a decrease in total interest over the life of the loan, saving just over $15-million over 20 years.”
Ostrander recalled that the rebuild had been required by the province in the first place, as a result of increased long-term-care standards.
“I'm not blaming anyone – if we are in the long-term-care game, I want to make sure we have a facility that is up to speed, state of the art of the residents who will be using the facility,” he said.
However, recognizing the effects COVID-19 was having on such projects, the province offered special supports to help out some of them – and the Golden Plough Lodge was ineligible because it had started too soon.
Northumberland Chief Administrative Officer Jennifer Moore said they had appealed to the province to reconsider, but never got anywhere. Nitsch estimated that additional funding would have been $2.3-million a year for the rebuild.
“Because Northumberland County was quick to act, ahead of the curve, we are actually penalized for that?” Cleveland asked.
“Because we were so ahead of the game and trying to move forward, this has actually resulted in a negative?”
“That's what it feels like, yeah,” Moore agreed.
Nitsch added a note of caution following discussions with the project manager.
“He pointed out that the discussions about tariffs between Canada and the US could potentially have an impact on procuring, so there are a lot of unknowns – but there's the potential for disruptions,” he stated.
“I think every single industry across Canada is concerned about this,” Cleveland agreed.