Guelph-Eramosa will likely proceed with a loan for the East Wellington Family Health Team to help it cover leasehold payments at the new medical clinic in Rockwood.
Last week council authorized staff and the township’s lawyer to prepare an agreement confirming the municipality’s financial support, and outlining how those funds will be repaid.
“It’s just a cash flow problem,” Mayor Chris White told council.
In late February, Erik Stern, chairman of the EWFHT board, asked council to help cover any shortfall that may exist after the team’s public fundraising drive.
Leasehold improvements, expected to cost a total of $450,000 to $475,000, will help cover items such as doors and frames, millwork, flooring, painting, plumbing, washroom accessories, electrical, plumbing and heating and cooling.
White said the Ministry of Health and Long Term Care wanted EWFHT officials to “sign their houses over” to cover the improvements, so the township decided to step in and support them.
“Anything we can do to help facilitate this is fine with me,” said councillor Doug Breen.
Councillor Reta Moyer wondered if there would be a time frame for the repayment of the loan.
White replied the original idea was an 18-month window, though such terms can be discussed in more detail prior to final approval of the agreement.