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Update On The 

New Mauno Kaihla Koti


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Update on the New MKK Long-Term Care Project

After careful and thorough consideration, the Ontario Finnish Resthome Association (OFRA) Board of Directors has made the difficult decision to pause the New Mauno Kaihla Koti (MKK) Long-Term Care project. This decision was not made lightly, considering the significant effort, time, and funds already invested into planning, design, and pre-construction activities.

Why We're Pausing the Project

The project's estimated cost has increased significantly despite several design changes intended to reduce costs to sustainable levels. Major factors contributing to this increase include:

  • Rising costs of structural steel and mechanical systems due to inflation and economic conditions.
  • Additional expenses related to ground conditions requiring specialized foundation work and pre-loading, adding approximately $1.9 million.
  • An extended construction timeline, now anticipated to be six months longer than initially planned, further increasing costs.

A Cautious Approach for Financial Stability

As a not-for-profit organization committed to responsible stewardship of resources, we have a duty to protect the long-term financial health of OFRA and ensure continued high-quality care for our current 440 residents. Proceeding under the current financial conditions could compromise our ability to meet these obligations.

Next Steps

The New MKK Project is currently paused, not cancelled. Our intention is to restart the project when economic and political conditions become more favourable. We remain committed to providing seniors in Sault Ste. Marie with modern, high-quality long-term care facilities.

We will continuously monitor the economic environment and explore additional funding opportunities in collaboration with government agencies and community partners. Our goal is to resume this essential project when circumstances support its successful completion.

Thank you for your understanding and continued support.

Frequently Asked Questions Regarding 'The Pause'

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