Essex County preps for Horace Nye sale

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January 24, 2012

LOHR McKINSTRY Press-Republican The Press Republican Tue Jan 24, 2012, 06:01 AM EST

ELIZABETHTOWN — Essex County is making necessary legal preparations for the possible sale of Horace Nye Nursing Home.

Late last year, the county contracted with national real-estate broker Marcus & Millichap for sale or lease of the Nursing Home, which is losing millions of dollars annually.

County Attorney Daniel Manning III recently said they've started dealing with initial requirements for a listing.

"Whether it (sale or lease) occurs or not, there are a couple of preliminary things that we need to have done right away, so that we are prepared, and they are also good items that we should have anyway."

ENVIRONMENTAL STUDY

"No. 1, we need to conduct a Phase One environmental evaluation of the facility and its grounds," Manning said. "They usually run $3,000 to $4,000."

The first step will be to issue requests for proposals for the study, he said.

"It is an environmental evaluation of the premises. Let's say, was there an old battery dump on the property, was there an oil spill, is there asbestos? It is so a prospective buyer knows we have a clean building or what are the problems associated with the purchase."

TITLE SEARCH

The next step will be to solicit quotes for a full title search, which should cost $600 to $1,200, he said.

"(That's) so that we have a complete and current abstract of title to present to any buyers. We need one done by a certified title examiner, which will be certified at the end so that any buyer who accepts it will feel comfortable accepting it."

The County Board of Supervisors Personnel and Administration Committee has given its approval for the work, and a final vote will take place at the board's February regular meeting.

INTEREST EXPRESSED

The county has placed a minimum price of $4.25 million on Horace Nye, with a commission of 3.25 percent for Marcus & Millichap.

The county doesn't have to accept an offered purchase or lease but is contractually bound to pay Marcus & Millichap the commission.

Board of Supervisors Chair Randy Douglas (D-Jay) said they already have contact with potential buyers, but no names are being released yet.

"There has been substantial interest, more than one would think."

He said the decision will be the biggest the board has made in a long time.

"In 2012, we, as a body, must decide the future of Horace Nye."

PROTECTION

The county seems to be leaning toward sale instead of lease of the 100-bed facility, and Manning said several contract restrictions will protect patients and staff at the Nursing Home.

"There would be language inserted in both the listing agreement and the contract that current residents would have the right to remain in the home as long as they want. There would also be language inserted that says that current union employees shall be guaranteed offers of employment, (and) that says that preference (for admission) will be given to Essex County residents."

There are 140 full- and part-time employees at Horace Nye, some of whom oppose sale or lease of the home on the grounds that wages and patient care could be reduced by a private owner.

Horace Nye was built in 1983, and the county says the facility currently loses $3 million to $4 million annually.

The buyer/operator of the home would either have to apply for a new nursing-home license, or the county could request transfer of the existing operating license by the State Department of Health.

Email Lohr McKinstry at: lmckinstry@pressrepublican.com