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February 11, 2014

Tenant to purchase rest home for $9.9M

SUNBURY — Northumberland County will sell Mountain View Manor Nursing Home, which it had been leasing to Complete HealthCare Resources since January 2010, for $9.9 million, county commissioners announced Tuesday.

Complete HealthCare Resources has exercised an option in its contract to purchase the nursing and rehabilitation center in Coal Township, said Jeff McClintock, Northumberland County chief financial officer.

“They were going to pay the county $125,000 a month over the term of the lease,” McClintock said. “Since 2010, they’ve been making those payments. Now, they just want to buy it outright. There was a clause in the contract stating they could buy it at any time for the full amount of the lease. They are exercising that option and have worked with the commissioners on the dollar amount. The full amount of the lease is more than $16.5 million, and that included interest. The agreed-upon $9.9 million is the payment to us, which will satisfy the lease, making the property theirs.”

Commissioners Vinny Clausi and Steve Bridy agreed that the money should go into a debt service account. Commissioner Rick Shoch was not at Tuesday’s meeting.

“I want to make sure that no politician is going to get a hold of that money,” Clausi said.

“We took out a $15-plus-million bond for projects,” McClintock said. “And the debt payments to the Mountain View Manor matched pretty well with the debt payments to pay off this bond. We have an option to pay the bond off early without paying interests or penalty and we can do that in September of this year or latter part of 2014.”

Clausi wants to put that money in a bank or investment account for debt service, such as a money market, so “we can take that money and just pay it off.”

Mountain View had already made a $125,000 February payment, so it will have already paid down some of the $9.9 million, McClintock said.

As of February 2009, Mountain View had 271 beds.

 

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