WOODLAND PLACE County makes bond payment

The county is waiting for a court ruling on the loan.
By MARY GRZEBIENIAK
VINDICATOR CORRESPONDENT
MERCER, Pa. -- The county made a fourth bond payment this week for Woodland Place, the nonprofit organization that operates the former county nursing home.
The payment of $200,000 brings to $945,000 the amount the county has spent to meet scheduled bond repayments for the financially ailing facility. This time, Woodland Place was able to pay $108,000 of the installment, which totaled $308,000.
Mercer County Commissioner Brian Beader said Tuesday at the Commissioners' Chief Clerk's meeting that Woodland Place "financially is looking much better." He commented that its patient census is up, independent living units are open and commissioners are working out an agreement for Woodland Place to repay the county, as required by their contract.
He said the nursing home, located on Pa. Route 58 in Coolspring Township, is already paying the county 6 percent interest on the bond payments. Commissioner Michele Brooks commented that by making the bond payments, the county has allowed the facility to remain open and in doing so, saved 100 jobs.
Borrowed for renovations
The county guaranteed the bonds several years ago when Woodland Place borrowed money to renovate the facility.
Commissioner Olivia Lazor said the payments are not being made from the county general fund, but from an escrow account established with money the county got from sale of the old county nursing home to the nonprofit facility. She said about $2 million remains in the fund and added that the interest payments are also going into the escrow fund.
In 2002, Woodland Place obtained $8.8 million worth of tax-free bonds to pay for renovations and to reimburse the county for the balance of its mortgage. The mortgage balance of $3.5 million was paid to the county.
In exchange, the county guaranteed the bonds and retained a mortgage on the nursing home. Since 2002, Woodland Place has completed $6 million in renovations to the facility, which needed repairs and updating when the county sold it.
Waiting for ruling
In a related matter, county Solicitor Mark Longietti said Tuesday he has heard nothing on an appeal to the Pennsylvania Supreme Court on whether the county is allowed to lend money to Woodland Place.
The state commonwealth court had reversed a common pleas court decision in July 2005, and ruled that the county is allowed to make a loan to Woodland Place. Commissioners Olivia Lazor and Michele Brooks had voted to extend a $1 million loan to Woodland Place because of its financial difficulties. County Controller Thomas Amundsen had asserted such a loan was not authorized by law and appealed the commonwealth court decision in August.