Rainycrest deal delayed by paperwork

FORT FRANCES—The deal to hand the responsibility of Rainycrest Home for the Aged here over to Riverside Health Care Facilities, Inc., while district municipalities continue to pay in diminishing amounts for 10 years to help run it, has been delayed due to paperwork.
The closing date for the deal originally was set for Oct. 18, with Riverside officially taking over Rainycrest on Thursday.
Instead, the deal likely will close sometime later this month.
“It’s likely not going to happen tomorrow,” Riverside CEO Wayne Woods said Tuesday.
But the delay will not affect the content of the agreement, he noted.
“I think the deal, as a whole, will go through,” Woods remarked. “However, there is a delay with the board of management’s lawyer. They need some more time.”
“Hopefully within the next week,” Woods replied when asked when the deal would close.
Fort Frances Mayor Dan Onichuk, who also chairs the Rainycrest board of management, identified another problem as the source of the delay.
“They’re having some trouble locating the original documentation when [Rainycrest] was incorporated and the initial agreement with the province of Ontario,” he said.
“It’s just some technical matters—nothing that’s going to affect the deal,” he stressed. “I would think it would be resolved in the next couple of weeks.”
Earlier this month, all 10 district municipalities approved a deal that would see Riverside take over Rainycrest permanently, with nine of the 10 municipalities contributing financially to the home over the next 10 years.
Those payments would begin in 2007 at 2006 levels, and decrease by 10 percent each year until phased out entirely in 2017.
Atikokan will put its annual Rainycrest contribution of about $200,000 towards the Atikokan General Hospital for long-term care programs there.
According to the deal, Riverside will purchase the home’s property and assets for $1.
The agreement also includes a promise from the Ministry of Health and Long-Term Care to add 21 beds to Rainycrest as well as an infusion of $1.35 million in capital grants for urgent repairs and upgrades there.
The new beds should help shorten the roughly 100-name waiting list for people waiting for admission to Rainycrest.
The ministry had assumed control of the home back on March 18, 2005 and appointed Riverside as the interim administrator.
(Fort Frances Times)

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