Lease finalized, Oak Haven now 'Pride Group at Okoboji'

The Dickinson County Board of Supervisors and a Le Mars-based residential care service provider have finalized an agreement to keep the doors of the county home open for the next decade.

Assistant County Attorney Lonnie Saunders reviewed terms of the agreement with the supervisors Tuesday morning, and the board voted to approve a 10-year pact with Pride Group.

"I think we have an agreement now that addresses most of the concerns of the board of supervisors as well as those of the Pride Group," Saunders told the board. "First and foremost we wanted to make sure they understood they were taking the property as is and that they were well aware of the mold problems that exist. Of course they are, but we wanted to make sure that was commemorated in writing."

The mold issues caused county board members to end their relationship with previous service provider Seasons Center for Community Health of Spencer -- Seasons officials on Feb. 5 were given a 10-day notice to vacate staff and residents from the county home over mold-related health concerns.

Pride Group CEO Michael Porter became aware of the imminent closure and began meeting with the county in early March to keep the doors open. Pride Group reached a short-term agreement with the county and moved in a handful of residents to keep the Oak Haven operating license current.

Under terms of the new, 10-year lease, Pride Group will have the authority to borrow up to $250,000 to do repairs.

"That $250,000 is going to be borrowed from the bank," Saunders told the board. "Pride Group has agreed to pay us $4,500 per month for the initial 10-year term of the lease."

The Pride Group's loan payment to its lender will count toward the $4,500 rent owed to the county each month.

"They have an obligation to provide us with all of the receipts," Saunders said, adding the county will be able to review spending records related to the Oak Haven building at the start of 2011.

At the end of the ninth year of the lease, the Dickinson County Board of Supervisors must notify Pride Group if it intends to end the agreement a year later.

"We're looking forward to a 10-year relationship with the county," Porter said. "We want to continually provide positive services in the mental health field for Dickinson County and surrounding counties that we do business with. I feel very positive about the decision."

Pride Group has already hired 18 full-time staff members including a new administrator. The service provider is still looking for maintenance and housekeeping personnel.

The residential care facility is licensed to have 38 beds and the county's long-term agreement will Pride Group to bring in additional residents with mental illness.

Porter said the county home will have a name change -- to Pride Group at Okoboji -- with the new agreement.