Bigger and better

Construction of new long-term care home underway

Construction has begun on a new 160- bed long-term care home in Prince Edward County—nearly doubling the capacity of the existing home.

Last week, McFarland Home staff and residents, along with local councillors and Bay of Quinte MPP Tyler Allsopp joined John Jordan, Parliamentary Assistant to the Minister of Long-Term Care, to break ground on the site.

Current estimates put the cost of the new home at $94.7 million. To fund it, Shire Hall will borrow about $80 million through Infrastructure Ontario—a provincial government agency—at an estimated interest rate of 5.1 per cent.

The province may eventually come up with about $60 million, but it will do so over time—monthly over 25 years. In the meantime, County taxpayers will fund the interest and the balance of the cost, plus construction cost overruns.

At last year’s budget deliberations, the impact of this borrowing was estimated to add $3 million to the tax levy—every year. That works out to a roughly six per cent levy increase before the next budget book is opened.

SMILES AND SHOVELS
Nevertheless it was all smiles and shovels at the groundbreaking ceremony.

“Our government is working to protect Ontario by investing in projects like this new long-term-care home in Prince Edward County to ensure seniors get the right care in the right place,” said Ministry representative Jordan. “Today marks a significant milestone for the County. [When completed] 160 residents will have a new modern, comfortable place to call home.”

According to Shire Hall’s statement, the new home will be designed to create a more intimate and familiar living space for residents through the use of private spaces, vibrant resident home areas and communal activities. This new home will feature services for nursing and personal care, food and diet, recreation, therapeutic and spiritual care.

The home’s amenities are designed to enhance resident engagement and overall quality of life. Offerings include a hair salon, lounge, gallery, outdoor gardens and an exterior walking path complete with sitting areas, all expected to be ready for its first residents in 2027.

“This much-anticipated redevelopment will provide for dignified care and comfortable living in Prince Edward County, close to families and the community. Projects like this are what happens when all levels of government work together to get things done,” said Bay of Quinte MPP Tyler Allsopp.

In November of 2024, council approved a $67.1 million tender to Matheson Constructors Limited.

“It has been 13 years since Picton Manor closed and that sad day has left our community with 78 fewer long-term care beds,” said Mayor Steve Ferguson. As a result, we saw lifelong County residents forced to leave their community and their families to seek long-term care elsewhere. Over the years, County Council has fought hard to have those beds returned to the community and we were eventually successful in 2019.”

The current HJ McFarland home was constructed in 1976, with an addition constructed in 2006. Though well-maintained, the facility no longer meets provincial requirements.

FINANCING CHALLENGE
The municipality is in a fragile financial position. In fact, it is in a net debt position with more liabilities than assets. Last fall, the County’s auditor flagged the challenges ahead for Shire Hall as it contemplated big project spending including the redevelopment of the McFarland Home.

“Looking out at your capital plans and infrastructure plans moving forward, [we are] just flagging for the committee the question of how those costs are going to be funded, the timing of those future costs, how this is going to look,” said KPMG auditor Katie McMahon. “This is a focus, I would say, for the future—certainly, before taking on any more debt.”

Nevertheless, the municipality should shoulder the financing risk of the long-term care home project. While it will eventually recover about $60 million from the province—this commitment will be paid in monthly instalments over 25 years. Meanwhile, County residents will fund the interest and principal until then. This cost will flow directly to taxpayers.

Happy faces masked the financial reckoning that is coming.