Title
Joint resolution approving Change Order Number Two for Agreement Number 14198 for the lease and management agreement between the County of Lake, Illinois, and Transitional Care of Lake County, LLC, (TCLC) of Rosemont, Illinois, in the amount of $734,000.
Staff Summary
* In 2015 Lake County and TCLC entered into an Operations Transfer Agreement and a Lease and Management Agreement (collectively, the "Agreements") for the County's skilled nursing facility known as Winchester House in the amount not to exceed $6,714,133.
* The County Board approved Change Order Number One to the agreement in January 2017 that extended the original three-year deal into a fourth year and provided an additional six months of incentive payments in the amount of $192,000.
* TCLC requested a second modification to the agreement due to a significant change in the equity partnership that has resulted in a delay in final approval of financing by the United States Department of Housing and Urban Development.
* The modification provides that the remaining start-up capital, which was originally tied to construction milestones, be forgiven upon execution of the modification and prior to construction to address changes in the equity partnership.
* An Operational Support Fund, in the amount not to exceed $734,000, will be established to address continued operational losses at the facility and will be accounted for based on actuals versus pro forma. No payment shall be made unless construction on the replacement facility begins by December 31, 2018.
* The anticipated construction start date has been extended to December 31, 2018, with an anticipated move in date to the new replacement facility in May 2020.
* Change Order Number Two increases the lease in a not to exceed amount of $734,000 for establishment of an Operational Support Fund increasing the cost of this agreement from $6,906,133 to a total of $7,640,133.
* In accordance with Article 8, Section 101 (1) of the Lake County Purchasin...
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