Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, August 1, 1995 TAG: 9508010061
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
SOURCE: DAN CASEY
DATELINE: LENGTH: Short
The 5-0 vote came after two council members lauded the agreement with Smith/Packett Med Com Inc. of Roanoke, which beat out nine other companies that had expressed interest.
Under the terms of the deal, Smith/Packett will build a new $3 million to $4 million nursing home for 58 patients, which later could be expanded.
It will accept all the city's patients, whose care is covered mostly by federal Medicaid payments.
The city will pay bonuses of up to seven months' pay to workers who stay at the nursing home through the company's takeover, which is expected in about two years.
The company also has agreed to retain city workers at their present wages and benefits for at least a year after the new nursing home opens.
If those workers prefer to transfer to another city department, the city will give them preferential treatment in hiring.
Vice Mayor John Edwards called the deal a "win-win" for the residents, the staff and city taxpayers, who are underwriting the nursing home to the tune of more than $400,000 annually.
Smith/Packett will pay the city $420,000 for the patients and certain equipment. The company is expected to choose a site for the new home by Aug. 15. The city is encouraging a site within the city limits.
Councilmen William White and Jack Parrott were not at the meeting.
by CNB