Nursing Home Dispute Ends with Mixed Judgment News for Champaign County

After mold and ventilation problems delayed the completion of the new Champaign County nursing home, the county board went after the nursing home's builders to collect damages. Now the last of those efforts is completed.

Arbitrators have ruled that Otto Baum Company, one of the prime contractors on the project, must pay Champaign County $405,000 for problems caused by mold found on wood during nursing home construction. After outstanding bills owed to Otto Baum are paid, the county will be ahead by nearly $150,000. Rantoul Township Republican Stan James serves on the county board's facilities committee. He says the settlement of the mold issue frees the county board up to focus on other concerns.

"That's one less thing on our plate, and now we can move on. We've got bigger budget issues to tackle and a host of issues due the economy that we need to be focusing on," James said.

While Champaign County is receiving some money in the binding decision, the arbitrators say the county also shares in the responsibility. The arbitrators' report say that the county, Otto Baum Company and construction manager PKD all should have known that unvented heaters were not adequate to keep mold away from wood used in nursing home construction.

Damages from Otto Baum, plus previous awards from other firms involved in nursing home construction are providing Champaign County with about $1.3 million in payments to help make up for extra costs and delays in nursing home construction. Facilities Committee Chairman Steve Beckett estimates that the payments fall $300,000 to $500,000 short of the county's expenses.