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<br />,I <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />June 22, 1993 <br /> <br />Page 11 <br /> <br />Council Business. continued <br /> <br />Gunderman asked why Twin City Christian Homes could not turn <br />Brightondale into a viable operation. Ms. Olson said the company did not <br />have full control because another company structured the facility. In 1990, <br />Twin City Christian Homes took over full management and ran an effective <br />operation. The second highest bidder, Capitol, said they would prefer to <br />see Twin City Christian Homes continue to operate the facility. <br /> <br />Gunderman asked if others knew of the financial problems. Ms. Olson said <br />meetings were held with the Board of Directors to review the financial <br />statements. When the facility was full, it ran efficiently. Gunderman <br />Questioned whether the residents received full disclosure of the financial <br />problems. Ms. Olson said the company has been fair to the residents. <br /> <br />Donna McBrien, daughter of a Brightondale resident, would like her mother <br />to stay, and supports the bond sale because of the lower rent increase. <br /> <br />Benke appreciates the input, but for practical reasons, the bonds would <br />lower costs which transfers to lower rent increases. The issue becomes <br />not services, but financing. The City is aware of the need for independent <br />living facilities and would work with developers to build facilities in New <br />Brighton. There will be winners and losers, but it is best to provide <br />relocation assistance and the deposit returns. <br /> <br />LeFevere confirmed that the City has no responsibility for the repayment of <br />the bonds which are payable from the revenues generated from the project. <br /> <br />Williams supports the bond sale because it provides for the least increase in <br />rents. In voting yes. he holds G & P to the following commitments; a <br />stable rent picture for 12 months, an acceptable rent increase, availability <br />of security deposits for use as rent, and continuation of proposed services. <br />He asked if residents could stay at a less than fully assisted living format. <br /> <br />Rebelein supports the bond sale because it provides the least increase in <br />rental rates. <br /> <br />Benke asked if the return of the security deposits could be added as a <br />condition of approval. LeFevere verified that this could be added to the <br />agreement. Mr. Gould said G & P plans to stand behind their commitment. <br /> <br />Gunderman does not support the sale, but agrees the bonds would provide <br />the least rate increase. He fears the City could become involved in a similar <br />situation in the future. <br /> <br />Motion by Benke, seconded by Williams, to WAIVE THE READING AND <br />ADOPT THE RESOLUTION AUTHORIZING ISSUANCE AND SALE OF THE <br />MUL TI.FAMIL Y RENTAL HOUSING REVENUE REFUNDING BONDS FOR <br />BRIGHTON DALE ASSISTED LIVING APARTMENT PROJECT; WHICH ARE <br />CONDITIONAL UPON THE TRANSITION PROPOSAL DOCUMENT; AND <br />EXPLORATION OF CREATIVE OPTIONS FOR THE USE OF SERVICES. <br /> <br />3 Ayes - 2 Nayes, (Gunderman and Larson) Motion Carried. <br /> <br />---,~~.~-~-- ~--- --~ _.~ - -. -- .,,-. ~. '.-.- -. --~ ~ <br /> <br />Council Business <br /> <br />Brightondale <br />Revenue Bonds <br />Report 93.176 <br />Resolution 93'()85 <br />