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I I I Council Meeting Minutes June 22, 1993 Page 10 Council Business. continued A resident's daughter said her parents do not need the extra services, and asked if residents could be protected from further increases. LeFevere said the City could impose restrictions on the bond issuance, but that could make the project more costly and less financially viable. Some concessions have been agreed to since it was originally addressed by Council. Benke verified G & P has committed to returning the deposits and allowing Qrandfathering of rent structure to existing residents. At some point, Council could lose leverage because G & P would no longer need the bond money. Rebelein said Council needs to decide before June 30 or G & P will seek other financing. Karen Larson, 1417-18th St, has a uncle who lives at a Buffalo nursing home and pays $1,695 per month. She feels the Srightondale rents should not increase much more and should remain competitive with other project. Rick Rosow, Capitol Indemnity, said Capitol is a Brightondale bondholder and feels Council should review the situation without bending to time constraints. It is appropriate for Miller-Schroeder to give Council a written confirmation for financing. He noted the trustee said in court that if the bonds were not approved, the next highest bidder is awarded the project. Cleo Rasmussen clarified that Miller-Schroeder is prepared to go to market tomorrow morning to structure a conventional loan for G & P which create a much greater debt service than the tax exempt bonds. Gary Albrecht, G & P Attorney, disagrees to the tabling of the issue, and feels Capitol is trying to undermine the G & P sale. If G & P completes the sale, all bondholders, including Capitol, would realize the greatest return on their initial investment. The G & P proposal and the minimizing of resident disruption requires the bond sale be approved tonight. Doreen Shubrowski, daughter of a resident, said many seniors use congregate dining which offers a meal for $1.50. She found that some organizations are building independent living facilities and wonders why G & P prefers assisted living facilities. Most of the residents want to stay at Brightondale and do not want to move to Brooklyn Center. Philip Carlson feels G & P should seek other financing. Benke said Council would love to see Brightondale turned into something similar to Golden Pond, but Council does not have that choice. The applicant chooses to change the facility because of business reasons and the City cannot control those changes. To the best of Council's knowledge, the decision to approve the bonds would minimize rent increases. Kristi Olson explained that Twin City Christian Homes were the previous Brightondale managers. G & P's increases do not include personal care and the average assisted living rate is $2,400 per month. She noted that rate increases at other G & P managed facilities were 33% in 1992. Council Business Brightondale Revenue Bonds Report 93-176 Resolution 93-085