The Town of Minto is considering direct involvement in ownership and operation of the Harriston Lions Medical Centre.
The Harriston Lions Club established the centre more than 30 years ago, but today the club is down to three active members and struggles to continue operations.
In the late 1970s, the Harriston Lions Community Medical Corporation was set up by the club to build and operate a medical clinic in the community. The clinic currently provides offices for a dentist and a family physician.
Faced with the challenge of declining membership, club members initiated discussions with the town about donating the clinic to the municipality to secure its long-term viability. In late 2014, with the facility in a net positive financial position, the Lions board resolved to proceed to transfer the facility to the town.
“During the transfer process, legal counsel determined the most cost effective and efficient way to proceed was for the town to acquire the non-profit corporation under the terms of the Municipal Act,” stated a report by CAO Bill White, presented to council at the March 17 meeting.
Titled, Business Case Study – Harriston Lions Community Medical Centre as an Economic Development Corporation, the report suggests, “In addition to being a simple and cost-effective way of transferring this medical asset to the town, having a municipal service corporation may have other benefits over time. The corporation could be used for land acquisition, downtown revitalization efforts, or operating at ‘arms-length’ town-supported functions such as Launchlt (a small business incubator operated by the municipality),” the report continues.
White told council the priority would be to complete the transaction to acquire the clinic.
“Expanding into an economic development corporation would be something for the future I believe,” he stated.
The clinic is located at the corner of John and Arthur Street on 0.65 acres including a fenced playground, the Harriston Lions Park, which is operated by the town.
A financial report indicates the property is assessed at about $227,000 and the facility operated at a profit of around $4,000 in 2014.
Leases for the two tenants come due for renewal in 2016 and 2017. White said Lions officials have indicated they anticipate the tenants will renew, but “There is a slight risk that if they don’t extend, we would be wanting to find new tenants after those dates.”
A proposed agreement with the Lions includes a condition that the building continue to be used primarily as medical offices.
“We’re great with that as long as there are medical tenants to be found,” said White, noting negotiations could result in that clause being extended to “medical related” or other uses, or altered to include a time limit on the condition.
The club also requested the agreement include continued donations to the Harriston Legion, local food bank and the Palmerston and District Hospital from surplus funds from the clinic’s operation.
“I don’t think there’s any issue with continuing that. That would come out of revenue to the corporation from the clinic,” said White.
Other conditions include retaining the name “Harriston Lions Medical Centre” for the facility and to continue employment of some local people currently involved in the maintenance of the facility.
“Would we be able to put a time limit on all of these … maybe the term of this council?” asked councillor Mary Lou Colwell.
“I think we should have some discussion with the Lions about that,” White responded.
Mayor George Bridge suggested it could be stipulated the donations would continue “as long as there is a surplus.”
If the plan proceeds, White estimated the town would assume operations by sometime in April or early May.
However, the CAO noted, the Municipal Act requires public consultation before forming a municipal service corporation.
“If during the public consultation, some kind of membership drive resurrects the Lions Club in Harriston, I guess we would have to consider that.”
Council received the report and approved proceeding to consult with the public about forming a municipal service corporation to retain and operate the clinic in the community, and explore expanding into an economic development corporation “if in the best interests of the community.”
