Community groups support lifting deed restriction on former county nursing home

Feb. 29—URBANA — Last June, representatives from Advocates for Aging Care told the Champaign County Board that they would oppose the sale of the former University Rehabilitation Center of C-U if it did not remain a nursing home.

However, as steering committee member Susan Schnuer puts it, the group's thinking has since "evolved."

"AAC has looked into the issue of using the current facility as a nursing home and has come to the realization that it would probably not be suitable, certainly not suitable for a contemporary, nonprofit nursing home," she said. "If the Champaign County Board decides to lift the restriction on the sale of the facility, allowing it to be sold for something other than a nursing home, AAC will support that decision."

The property, which was constructed as the new home for the Champaign County Nursing Home in 2007 before being sold in 2019, was the subject of a special county board meeting Tuesday, as it weighs whether to lift the deed restriction — which states that the site cannot be used as anything but a nursing home until 2028 — in exchange for compensation from the current owner, M&T Bank. No action was taken at the session.

The property at 500 Art Bartell Road, Urbana, is currently being advertised by Frontline Real Estate Partners on behalf of the bank.

"The bank did receive bids for the facility, but none of them were for use as a nursing home," said County Executive Steve Summers. "All the offers are for substantially less than the outstanding mortgage due to the bank, and any of those entities would require the deed restriction to be lifted. Currently, the county does not know who the highest bidder is or what the planned use of the facility would be."

He added that they would want more information on the potential use of the site before agreeing to lift the covenant. Summers did not have an estimate as to when a proposal might come before the board, as negotiations are ongoing.

In considering the matter, board member Eric Thorsland said while there is a need for more nursing-home beds in the community, he does not believe the site can be reopened as a nursing home.

However, board member Lorraine Cowart said she hopes whoever buys the site would turn it back into a nursing home.

"We promised the voters that we would provide nursing care," she told The News-Gazette. "And that's what I'd like to see us do, keep that promise."

Summers said in a previous interview that a program manager with the Illinois Department of Public Health told him the license for the home has lapsed, and any new operator would have to invest significant capital to get the property in compliance with all current IDPH codes.

He added that the receiver has said they were told that "demolishing the building down to the foundation and rebuilding was the most likely way to have a nursing-home facility on that site."

University Rehab of C-U was shut down by its owners last spring. William Rothner, manager of parent compnay University Rehab Real Estate LLC, had previously appealed to the county board for a waiver to the restrictive covenant.

Last fall, Champaign County Judge Ben Dyer approved an order in a lawsuit over unpaid mortgage debt for the nursing home, which included appointing Frontline as the receiver to handle, in part, the sale of the property.

Property taxes have not been paid for at least two years, Summers said. If the county board were to lift the restriction and allow a sale, they could potentially get a direct payment from the bank and would also recover the county's portion of back taxes. Other taxing bodies would also receive funds.

Claudia Lennhoff, executive director of Champaign County Health Care Consumers, said her group also supports lifting the deed restriction and would encourage the county to put some of the funds toward finding a solution to the community's need for more skilled-care beds.

"We have to salvage something out of this situation," she said.

Schnuer said Advocates for Aging Care expects continued partnership with the county board as it seeks to address a shortage of skilled-care beds in the area.

She also noted that, thanks to financial support from the board and collaboration with the Champaign-Urbana Public Health District, the group has launched two surveys: one for senior residents and caregivers, and one for medical professionals who work to place individuals in facilities.

Advocates for Aging Care and the health district are also working to hire a consultant who can conduct a market study on facility needs in the county. Results from both the surveys and the market study are expected in April.

Schnuer said there is a need for a new "nonprofit contemporary facility in Champaign County," however, neither her group nor the county should manage or own such a facility. Instead, she said their role should be to attract an operator by developing a business plan.

Additionally, a new facility will need a certificate of need to justify adding more beds. The certificate, which is provided by the Illinois Health Facilities and Services Review Board, would be necessary to open a new nursing home or add beds at an existing facility, said Cathy Emanuel, a fellow member of the group's steering committee.

Without one, the new facilities would be unlicensed, which would prevent them from receiving Medicaid and Medicare reimbursements. She added that most health insurance companies require that nursing facilities be licensed.

Emanuel expressed hope that the level of support in the community, as well as the numbers regarding need, would lead to a positive outcome if an application for a certificate is submitted in the future.

"I talked with both hospital CEOs (at Carle and OSF), and they both said, 'Yeah, we have a problem,'" she told The News-Gazette. "And that's why they were willing to participate in our community collaborative and help us look for solutions."

According to Schnuer, both Carle Health and OSF Healthcare have said they are committed to collaborating on this issue and are considering contributing financial resources for a "not-for-profit facility that could help meet their patients' needs."

In addition to these providers, Advocates for Aging Care is also working with Christie Clinic, Health Alliance, Champaign County Health Care Consumers, the Community Foundation of East Central Illinois, the United Way of Champaign County and the University of Illinois.

"Together, we can find a solution to this issue," she said.

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