Liverpool council today moved to clarify clamour over claims its new care homes deal was costing city taxpayers' money.
The saga of Brushwood and Millvina care homes in Speke and Everton, the first council-built care homes in 25 years, has angered families since it was suddenly announced last August they would shut after less than one year in operation.
Two months ago, Acting Mayor Wendy Simon told how a new provider, Bloomcare, would take over from Shaw Healthcare.
Yesterday, the ECHO reported how a clause allows the new tenant to buy the freehold within three years time, sparking fears elderly residents with dementia would be forced to find a new home elsewhere.
Public council documents show how Shaw were paying £750,000 annual rent, for the two homes, while Bloomcare would only pay £250,000, with papers quoting how "lease income will be significantly lower than previously anticipated."
It led to questions over whether best value had been secured by Liverpool council, particularly in the light of last week's Max Caller government report which has highlighted a catalogue of financial mismanagement in the city in recent years.
Today, the council told the ECHO the figures quoted in February's Audit and Governance Select committee were "incorrectly stated."
The local authority insisted Bloomcare would pay £250,000 rent, on each home, per annum, the same as previous occupiers Shaw Healthcare.
Asked why the clause inserted to allow Bloomcare to buy the buildings and land after three years was agreed, the council said it would have been needed to secure any deal.
In a statement to the ECHO, a Liverpool council spokesman said: "The annual rent to be paid for the homes remains the same as for the previous provider.
“As previously stated, the council invited expressions of interest on the basis of a wide variety of commercial terms in order to secure the future of the homes and these expressions of interest did not preclude an option to purchase at some point in the future.
“It is very unlikely that we would have been able to secure a new provider for the homes without an option to purchase.”
Some families with loved ones in the £16m Speke and Everton homes, built in 2019, have spoken of their fears they could be "evicted" in 2024 if Bloomcare exercise their purchase rights.
But the ECHO understands Town Hall figures are extremely opposed to that terminology, insisting any potential move, from any home, would be carefully managed and appropriate transfers made.
The purchase clause states that if Bloomcare did buy the freehold, the premises must remain as care homes for the elderly.
The exchange of contracts between Shaw and Bloomcare is understood to have happened within the last 48 hours.
Some Liverpool MPs have been asked by families to examine the fine print of the council deal and for written assurances as to its future.
Last summer, operator Shaw Healthcare gave notice that it wished to cease as provider as it was no longer viable, largely due to low occupancy linked to the coronavirus pandemic.
The move sparked fierce opposition and protests from staff and families of residents at the homes, who called on the council to find a way to keep the homes open.
Brushwood, built at a cost of £8m to the council, was the first care home built by the council since the 1990s and opened last October, with Millvina opening the month after.
There are around 132 employees at both sites.
