Documents to refinance the mortgage on the Connie Binsfeld Resource Center in Lake Leelanau could come before the Leland Township Board by early July.

Bill Crawford, director of the Benzie-Leelanau Health Department, told the board of health at its May 22 meeting that approval from Leland Township and the health department is needed to refinance. The refinancing plan, a cost-saving measure, is being pursued after a nearly year-long vacancy in the Binsfeld Center by the Leelanau Peninsula High School. Money generated from the lease of space for the alternative high school contributed a significant amount toward the monthly mortgage payment for the facility. However, since the space was vacated in July, no one has come forward to rent the unoccupied space.

“The delay in moving ahead with this process is caused by the fact that there is no clear mechanism that allows for paying off the bond in advance of the term,” Crawford wrote in a memo to board members. “This whole process has been complicated based on the fact that no other Northern Health Foundation building has ever paid off the bond early, had the building ownership go to a non-reversionary party or refinance beyond the original term of the mortgage. This has led to numerous questions that have been needed to be researched by bond council and has taken much more time than was ever thought … (or) needed.”

Since the state does not allow local health departments to or construct their own facilities, the Northern Health Foundation (NHF) Sub Benzie-Leelanau Health Department was formed under the auspices of the NHF and was given backing for bonding by Leland Township. In exchange, the township was to become the owner of the building, which located behind the VFW Post No. 7731 in Lake Leelanau, after the mortgage was completely repaid.

However, township officials have since “signed off” on the refinancing and have encouraged the health department to pursue the sale of the facility.