The nation’s banking meltdown has stalled plans by Porter-Starke Services to
build a new mental health facility in Portage.
Porter-Starke said in reaction to the current market upheavals, its lender
had to alter the financing terms for the approximately $1.5 million facility,
making the project fiscally unfeasible for Porter-Starke at this time.
Porter-Starke was in the process of completing its construction plans and had
planned to have a groundbreaking this fall.
Bob Franko, vice-president of marketing and development for Porter-Starke,
said the agency definitely intends to build the facility at some point.
“We’re just waiting for the market to correct itself,” he said.
Possibly by next spring, after the government rescue plans are implemented
and after the markets stabilize, the Portage facility will move forward,
Franko said. “The timing is just not right,” he said.
Porter-Starke announced in March its plans to build an 8,000-square foot
facility on south Willowcreek Road near Porter Hospital’s Portage campus. The
new building would expand Porter-Starke’s presence in the county’s most
populated community, by offering day treatment, addictions programs and other
mental health services.
In a statement, Porter-Starke President/CEO David Lomaka said if the agency
went ahead with the construction based on the new terms, it would have to cut
back in other areas, an option deemed unacceptable.
“The tragedy of all of this is that during times of economic distress, the
need for mental health and addictions treatment significantly increases,”
Lomaka said. “It just doesn’t seem logical to have to limit expansion and
access when all the projections show that more people are going to be seeking
help.”
Lomaka said he plans to meet with the county’s leaders about possibly using
the interest earnings from the sale of Porter Hospital for local health
programs, including mental health. Porter-Starke has previously urged the
county to use part of the hospital interest money for its inpatient mental
health hospital; county officials have not yet decided how to spend the
approximately $5 million annually in interest earnings from last year’s sale
of the county hospital.
“The fact that our local leadership had the vision to negotiate the sale and
that they’re such careful stewards of those dollars should really be
applauded,” Lomaka said. “But there are some strong established health and
wellness programs here in the county that could really be saved and enhanced
with those dollars and that would save the taxpayers from footing any more of
the cost.”
Posted 9/29/2008