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I ] I Council Meeting Minutes June 22, 1993 Page 8 Council Business. continued Rebelein asked if the G & P agreement is contingent upon bond approval. Cleo Rasmussen, Miller.Schroeder, verified that they are prepared to secure conventional financing for G & P if the revenue bonds are not approved. Rebelein said the assisted living change would occur even if Council did not approve the bonds, and asked the impact upon rates if the bonds were denied. Mr. Gould said the cost to borrow would be substantially higher and G & P will need to review the project, but it would most likely become a more expensive project. Gunderman asked when would the reservation deposits be returned. Mr. Gould said that even though his company has no legal responsibility, they feel a moral responsibility to return the missing deposits. Williams asked when would residents see their next rent increase. Mr. Gould said G & P would evaluate rates after 12-18 months. G & P has identified three senior facilities in Brooklyn Center where Brightondale residents could relocate. The assisted living program is not for all people, but G & P has a long term interest and would stabilize Brightondale. Williams verified that a husband and wife who share an apartment could split the meal allocations. Mr. Gould noted that a second occupant charge would not be added to the rent for this type of living arrangement. Benke verified that the kitchen units would remain. Rebelein asked if a resident could sell their meal vouchers. Mr. Black said meals could be sold, given as gifts, or used as the resident wishes. Rebelein confirmed that G & P is willing to reimburse the $2,500 security deposit even jf the resident decides to stay at Brightondale. Williams said a "yes" vote would raise rents the least amount, and it appears that G & P is able to receive financing without bond approval. Phillip Carlson's step-mother lives at Brightondale. He surveyed the apartment residents and found the majority prefers Brightondale to continue as a independent living complex. He feels the G & P survey reflects the scarcity of affordable senior housing which causes residents to stay at Brightondale even if they do not need assisted living. He presented Council with his own calculations of the bond sale, and feels Council should give another bidder the right to purchase Brightondale without bonds. Benke asked Mr. Carlson if he would maintain his opinion even jf City denial would cause rents to increase more. Mr. Carlson feels the City should not be a party to the eviction of so many people. Benke noted that if G & P obtains conventional financing, some people would not be able to afford living at 8rightondale. Mr. Carlson feels Council should not believe that G & P could obtain conventional financing from a verbal commitment. Benke feels the Miller-Schroeder representative would not confirm financing if it were not approved by committee. Council Business Brightondale Revenue Bonds Report 93-176 Resolution 93-085