On Wednesday, February 19, 2025, the OFRA Board of Directors made the difficult decision to pause the New MKK Project with the hope of restarting it when the economic and political climate is more conducive to its success.
The following questions and answers will help clarify the decision and impact for donors.
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What is the New MKK project?
The New MKK project is an initiative that would build a new 128-bed long-term care facility with 24/7 support in Sault Ste. Marie. The announcement of this plan was made in 2014. The project would be run by The OFRA, a campus that is already home to approximately 440 residents, 186 staff members and 300 volunteers. Currently, OFRA sites include:
● Two independent-living apartment buildings.
● An assisted-living facility for seniors who require some support with their daily living activities.
● A nursing home that provides 24-hour access to healthcare services.
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What was the OFRA Board announcement?
On Wednesday, February 19, 2025, The OFRA Board of Directors made the difficult decision to pause the New MKK Project with the hope of restarting it when the economic and political climate is more conducive to its success.
Recent announcements of a 25% tariff on steel and aluminum imports and the threat of 25% tariffs on all products have introduced significant uncertainty within the Canadian construction industry. Even before these tariffs take effect, the anticipation is already influencing market dynamics, leading to increased costs and project delays.
As a not-for-profit organization with limited funds, OFRA has an obligation to:
1. Ensure we do not take on debt levels that could compromise the care of the rest of our 440-resident OFRA community.
2. Spend donor money prudently without risk of running out of funds before completion.
3. Protect OFRA’s reputation in Sault Ste. Marie as one of the most trusted and reliable providers of care for seniors.
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What will this mean to OFRA?
This means we continue to provide the same care for OFRA’s 440-resident community, which has earned us a reputation in Sault Ste. Marie as one of the most trusted and reliable providers of senior care.
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Does the Ministry of Long-Term Care know about this?
Yes, they were contacted promptly after the OFRA Board's decision.
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How does OFRA’s leadership and staff feel about this?
Sad. Disappointed. Frustrated. Our business is the care and well-being of seniors. Like many other areas in Canada, Sault Ste. Marie is in crisis today, with insufficient beds for our existing populations. People who should be leaving our crowded hospitals stay because they have nowhere appropriate to go. We wanted to play a role in the solution and were willing to lead. Still, this economic and political climate is too unpredictable, and we cannot put the rest of our organization, whom we also need to care for, at risk.
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How much was the project budgeted to cost?
Initially, the amount was $50 million, but after the first tender (which came in at $100 million), OFRA reworked the numbers to a maximum of $62 million.
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How much was the shortfall?
$15 million
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How long is the pause expected to last?
OFRA cannot predict what will happen in economic or political spheres. However, we are actively monitoring the situation.
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How much was raised through donations to support the construction of the New MKK Project?
Through the hard work of the OFRA Foundation, OFRA Ladies Auxiliary and the generosity of over 1,000 donors, $1.3 million was raised for the construction of the New MKK Project.
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Where are the funds currently?
All money collected for this New MKK project is in the New MKK Fund set up by the OFRA Foundation and will be used when it is more fiscally appropriate to proceed with the project.
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Are you returning donations?
We have been contacting all our donors for whom we have contact information. Thus far, no one has asked for their donations to be returned. We have informed them that we will keep their donations in the New MKK Fund to be used when it is more fiscally appropriate to proceed with the project.
Alternatively, if they want to move their donation to a different initiative within OFRA, their donation can be used sooner. This would be done by reallocating the donation to the OFRA Foundation's General Fund, which is used for projects, programs, and items that provide safe, compassionate, and resident-centred care that are not captured within the OFRA budget.
This applies to individual, corporate and group donations
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What happens if the pause on the project is indefinite and never viable?
If this project becomes unviable, we will inform donors of our plan to reallocate the donation to the OFRA Foundation's General Fund. This fund is used for projects, programs, and items that provide safe, compassionate, and resident-centred care that are not included in the OFRA budget.
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Can past donations be redirected to another ORFA initiative?
Yes. In fact, a recently developed strategic plan for the next three years provides high-level details on several projects to which donations can be redirected. If this is of interest to you, please call the OFRA Foundation for more information.
