Stephenson County board approves nonbinding letter of intent with Serenity Estates for Walnut Acres

The Stephenson County Board voted 10-5 Wednesday to approve a nonbinding letter of intent (LOI) that gives Serenity Estates a 30-day window of exclusive negotiation for purchase of the Stephenson County Nursing Center, commonly called Walnut Acres. The motion was made by Mrs. Baker and seconded by Mr. Whelan.

The LOI does not obligate the county to sell, State's Attorney Larson told the board; he said the only binding obligation is a short exclusivity period during which the county will not negotiate with other buyers. The LOI will return to the board only if Serenity submits a formal purchase offer for approval.

Why it matters: Walnut Acres is the county-operated long-term care facility for Stephenson County and surrounding areas. County officials said the home is operating with large unpaid bills and overdue federal filings that threaten Medicare reimbursements, while opponents of the LOI urged a countywide referendum and more time to vet buyers. Supporters said the county cannot sustain the facility long term and needs an operator with capital and clinical experience.

Board debate and public testimony centered on legal, financial and operational risks. More than a dozen residents, family members and workers testified during the public-comment period, many urging the board not to sell and to insist on a public referendum. Representative remarks included:

- “Please vote against this or postpone it so you can investigate further,” said Christopher Kluge, a Freeport resident who told the board he had concerns about terms that would transfer operations and accounts receivable to a private buyer while leaving outstanding county bills with taxpayers.

- “We’re against privatization,” Cody Dornis, an AFSCME Council…