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Bonding issue could jeopardize ARPA money for Cayuga Health drug and mental health treatment facility

Bonding issue could jeopardize ARPA money for Cayuga Health drug and mental health treatment facility

Photo: Saga Communications


ITHACA, NY (607NewsNow) – Plans for a drug and mental health treatment facility in Tompkins County have hit a snag.

An issue arose during the licensing process for Cayuga Health’s withdrawal stabilization and intensive crisis stabilization centers. Frank Kruppa is Cayuga Health’s Assistant Vice President of Community Program Development and Partner Integration. He says there are challenges related to ownership of the North Triphammer Road building.

“The Alcohol and Drug Council was the original owner and intended occupant to provide the services,” said Kruppa. “The monies that the state provided to purchase the building and to make the renovations were bonded for. And so, as we understand it, when they bond, it’s for a specific agency for a specific purpose.”

Kruppa said state agencies involved in the financing are looking for a solution.

The Alcohol & Drug Council abruptly closed in February 2024. Kruppa adds the building also has liens on it, though he believes money is available to fill those deficits. While state agencies try to iron out the legalities, Cayuga Health is working diligently to be prepared to act.

For Tompkins County lawmakers, the roadblocks for the project, which was first due to be open in 2023, and, after changing hands, slated to be complete earlier this year, are particularly troubling due the American Rescue Plan Act money it received. The Legislature agreed to give $1.5 million in the COVID-19 era relief money to the project back in 2024. If the project is not completed by the end of 2026, the money could be clawed back by the federal government.

“I’m really concerned because, as many of you know, we allocated the largest amount of [ARPA] funding to Cayuga Med for the detox center and you guys have been sitting on it for a long time,” said Legislator Shawna Black. “We could have given that to other nonprofits that were doing good work here.”

The sentiment was echoed by Legislator Travis Brooks.

Kruppa and Cayuga Health remain optimistic there’s a path forward to project completion before the money is due to be spent at the end of 2026, it’s just not up to them, entirely.

“There’s just a lot of moving pieces, much of which are out of our control,” said Kruppa. “We’re waiting for the state to give us some direction on being able to move forward. We definitely recognize the impact on the $1.5 million and we very much want to see that used for the services that it was allocated for, and we’re doing everything we can to try to make that a reality.”

You can watch the entire discussion at the November 19 Health and Human Services Committee meeting here.

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