The City of Sault Ste. Marie tonight tweaked its relationship with the F. J. Davey Home, aimed at securing preferred status for the home from Revenue Canada.
Under an agreement approved tonight by City Council, in the event that the Davey Home is ever dissolved, the property remaining after all debts and liabilities have been settled will be taken over by the City.
This change is expected to persuade Canada Revenue Agency to change the home's status to one similar to a municipal organization, resulting in Goods and Services Tax (GST) advantages.
In 2002, the City of Sault Ste. Marie donated $9.8 million toward the cost of the new Davey Home, and was in turn relieved of its responsibilities under the Homes for the Aged and Rest Homes Act.