Published: November 06, 2009 10:48 pm      

County: Crest sale progressing smoothly

EBENSBURG — The sale of Cambria County’s nursing home won’t face as many legal hurdles as anticipated, the county commissioners said Friday.

Despite previous indications, the Laurel Crest sale won’t have to be approved by either the county court or the state Attorney General’s Office, President Commissioner P.J. Stevens said.

County solicitors Robert Shahade and Randy Rodkey determined after more research that review by the court and attorney general is required only of nonprofits taking such a step, Stevens said.

The solicitors advised the commissioners that the county, as a public body, already is held to “a very high standard” by having to take the action in public meetings after publicly advertising the property for sale and receiving bids, Stevens said.

Cambria is in the process of securing the state Department of Health’s approval for the license transfer, he said.

Grane Healthcare, which is buying Laurel Crest for $14.25 million, is facilitating that step with the state.

“Its just a matter now of closing the deal,” Stevens said.

“The formal closing will take place Dec. 31. That’s when the check will be handed over to the county.”

Although Laurel Crest – which has been losing millions of dollars – will no longer be a budgetary drain for the county, the commissioners are not ready to say whether a tax increase can be avoided, Stevens said.

The budget preparation still is in the early stages. Adoption is required by Dec. 31.

“All we’ve said is a tax increase would not be needed to fund additional losses at Laurel Crest. There are still other budgetary pressures, including a retirement contribution. We don’t know what the health-care (rate) increase will be, and there are normal inflationary costs.

“We believe we can deal with most of it, but any increases can have an impact,” Stevens said.

Commissioner Milan Gjurich, noting that budget hearings with department heads start next week, said, “It’s very premature (to comment on taxes).

“We have to wait to see what they are seeking. We’ll have to be very cautious with the budget and check each line item thoroughly.”

The commissioners have said that money from the sale will go to pay off debts, including $5 million on a Laurel Crest loan and $6.5 million to repay grant money received for recent updates at the nursing home.