The Middlesex-London Health Unit (MLHU) is seeking a line of credit from the city to cover a portion of the cost of its upcoming relocation to Citi Plaza.
The line would be capped at $5.2 million and last for no more than two years. The MLHU is also seeking an interest rate of prime minus 1.18 per cent.
The deal would allow for any outstanding balance on the line of credit to be converted into a long-term loan with the city, with this loan being subject to a new lending agreement once it’s established.
The proposed agreement comes after London’s community and protective services committee passed a motion last summer to allow the city to negotiate a deal to support the fit-up costs of the MLHU’s move to Citi Plaza.
Plans for the relocation were first conceived early last year, but the move hit a roadblock when Middlesex County, the landlord of the MLHU’s current office on 50 King St., attempted to block the change of residence.
The county’s council cited costs and a lack of consultation as reasons for their refusal, with Lucan Biddulph Mayor Cathy Burghardt-Jesson telling 980 CFPL at the time, “we don’t believe that they followed the proper process as outlined under the Health Protection and Promotion Act.”
A two-month long judicial review ensued, and the MLHU came out on top after Johanne Morissette of the Ontario Superior Court ruled in favour of the relocation.
The proposal will be brought up during the MLHU’s board of health meeting on Thursday.
A memorandum of understanding is being drafted with the city, but the MLHU wants to be able to access funds by April 1.
A date has not been set for when the MLHU will vacate its office on King Street, but the health unit has made clear that its office in Strathroy will not be impacted by the move.