Canal View has more value to residents than a dollar figure.
In the fall, Houghton County’s board of commissioners and Canal View long-term care agreed to assess the facility’s value of the operation in Hancock. The public long-term care facility had not had an assessment in several years. The assessment also aligned with the mission of the county-held properties committee that sought to understand the value of Houghton County’s assets in relation to a longstanding jail issue.
Canal View sits on 5.8 acres of land, operating as a specialized nursing facility. Canal View’s operation as a skilled nursing long-term care facility provides the most care to seniors, second to hospitals and acute care facilities. Canal View has a licensed maximum capacity of 197 beds. Currently the facility maintains 95 units and fills 145 beds.
Laplander explained long-term care facilities are assessed based on the number of occupied beds.
“Pretty much based on the beds. I think Commissioner Anderson was right when he said, beds are worth about one hundred grand, $105,000. And that’s really what the appraisal was based on, was based on the beds,” said Adam Laplander, director of Canal View long-term care.
In past meetings, the Houghton County board of commissioners have expressed no interest in selling the Canal View facility. That sentiment has not changed since receiving the facility evaluation. Commissioner Tom Tikkanen noted counties more often today have been charged with three missions: providing adequate law enforcement and a fair court system, care for seniors and the indigent, and protecting the county’s environment.
“And only through this mechanism can the people, the voters of Houghton County maintain control over the (Canal View), and guarantee the future care of our treasured elderly folks or those that are incapacitated,” said Tom Tikkanen, chair of the board of commissioners for Houghton County.
Commissioner Joel Keranen led the effort to have Canal View evaluated, in line with the mission of the county-held properties committee that sought to understand the value of county assets. He expressed a desire to dig deeper into the value of county assets to avoid larger tax millages.
“Glenn and Gretchen are on record, not wanting to sell it, that’s fine. I respect that. I know Roy and Tom didn’t want to be based on that. And I’m not saying that I do. I just want to keep digging deeper. I think the numbers and figures have more left than there is. And if we want to jail, what other options do we have?” said Joel Keranen, commissioner for Houghton County.
Houghton County’s board of commissioners voted 4-1 to not offer Canal View for sale. Commissioner Keranen was the lone dissenting vote.
Another factor to consider in the case of any sale of the long-term care facility are liabilities to employee pensions and wages, and state grants and bonds. Laplander estimates, based on the $14.4 million assessment, the state of Michigan would retain $5 million to $7 million on a sale. Leaving the county to collect about $4.8 million in the end.
“Our pension liability at the end of fiscal year 2025 was $3 million for that liability. And then our PTO liability estimated in fiscal year 2025 was about $600,000. So that would leave you to net $4.8 million,” Laplander said.
Laplander shared with the board over many years Canal View has maintained a quality facility. Upgrades and improvements made to the roof, a boiler system, new windows and doors, and several other projects are the result of a community’s long-term investment.
“Your point early on, is with all of the taxpayers investments made in capital on that facility would be written off. A new owner would reap the benefits of you and other administrators at that facility who have kept it in excellent condition. The memory care additions, other additions. Of all of the care facilities I’ve been in in the Upper Peninsula, not that I’ve been to all of them, certainly as far as capital. Ours is as nice as anyone,” said Glenn Anderson, Houghton County commissioner.
Laplander was able to find records of millages supporting elder care at Canal View since 1982. Commissioners Anderson and Tikkanen expressed similar thoughts on the larger value of Canal View to the community.
“The value to the county would be giving up such a valuable asset, that we already have a major investment into. Then sell it for less than what we have invested in it. And two as you point out, and I think it’s completely accurate. A new owner would certainly reduce staffing. At some level. Because to some degree you are subsidized by taxpayers as far as the operation and capital,” Anderson said.
“You won’t have that control with a private for-profit, or even a larger non-profit. Their boards are located elsewhere, and their financial goals are always going to be different from a local community based facility such as this. The other area we are entering to the realm of, is the care and protection of the quality of our environment. Not to go off topic, but there’s kind of this three legged stool, it’s law enforcement, care for our elderly, and our environment. And I think you all see that’s something that community has been dealing with, with the advent of recycling,” Tikkanen said.
Tikkanen also noted that since the establishment of the Canal View facility voters have turned out at elections. Millages supporting the long-term care facility have some of the highest voter participation. Past millages have received more than 60 percent of votes in favor of the facility.
Houghton County’s board of commissioners also approved plans for converting a portion of the Sharon Avenue property to office and record storage space. Building department director Todd Laroux shared that OHM was able to solve the truss issue in the former sanctuary and avoid the need for structural posts. Work is expected to start in the fall, and Houghton County will fund the work with ARPA funding left over. County administrator Chelsea Rheault estimates the county has about one million dollars remaining in the account.
The Houghton County Jail Committee will meet on Thursday at 4pm on the fifth floor of the Houghton County Courthouse. Those interested find more information on the Houghton County Jail project can learn more about reports, meetings, and other updates here. Those interested in viewing a copy of the Canal View value assessment report can find more information here.
