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<br />(I <br />II <br /> <br />tl <br /> <br /> <br />Council Meeting Minutes <br />June 22, 1993 <br /> <br />Page 9 <br /> <br />Council Business, continued <br /> <br />Rebelein reiterated that Council does not have control over rental rates. <br /> <br />Williams said it is important to understand that the City does not have <br />control in retaining Brightondale as an independent living facility. If the <br />bonds are not approved, it may cause residents to leave because other <br />financing is more expensive. <br /> <br />Mr. Carlson said there is a shortage of affordable senior housing in the <br />northern suburbs. Rebelein agrees. but if the facility is privately financed <br />there would be an even greater need for affordable housing. <br /> <br />Benke asked what would happen to current residents who need assisted <br />living. Mr. Carlson said those residents who need assisted living would <br />move to such a facility that provides those services. <br /> <br />Williams said G & P has been granted first right by the court to purchase <br />the facility either with bonds or conventional financing which would raise <br />rents. It is not what Council wants, but we need to consider the facts. <br /> <br />Mr. Carlson noted his frustration that the bankruptcy court did not involve <br />the City during the bankruptcy proceedings. Council shared his frustration <br />and concern for the situation. <br /> <br />Larson asked how much will it cost to operate Brightondale. Mr. Gould said <br />the previous management's operating statement showed $547,000 to <br />operate at its present condition, which he feels was a skeleton operation. <br /> <br />Gunderman asked how does G & P intend to make Brightondale profitable. <br />Mr. Gould feels G & P would efficiently run Brightondale with these <br />changes: added staffing, dining room utilization, security, $500,000 worth <br />of improvements, handrails and other modifications. Locke noted that G & <br />P will not have a $4.2 million debt payment like the previous management <br />and intends to charge an increase rent to provide additional services. <br /> <br />Dorothy Gilbert, representative of neighborhood group living near <br />Brightonda/e, is concerned that good people will/eave the City and no <br />longer provide revenue to the Rice Creek Shopping Center. This is a <br />horrible disruption and asked Council to not vote until there is formal notice <br />on the financing. Benke verified that Council decision will not be easy. but <br />the issue needs to be resolved by June 30. <br /> <br />Benke asked if the bankruptcy court determined the facility's selling price. <br />Mr. Gould said the trustee solicited bids for the project and G & P was the <br />successful highest bidder and the court ruled in favor of the G & P bid. <br /> <br />LeFevere said the original proceeds to build the facility came from <br />bondholders and when the building did not generate revenues, a trustee <br />took possession and held the building. The trustee tried to sell the building, <br />but was unable to get the full amount originally loaned. A trustee is <br />obligated to get the best price, and the Court decided that the trustee had <br />performed satisfactory . <br /> <br />Council Business <br /> <br />Brightondale <br />Revenue Bonds <br />Report 93.176 <br />Resolution 93"()85 <br />