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<br />I <br /> <br />I <br /> <br />-. <br /> <br /> <br />-J <br /> <br />Public Hearing Minutes <br />June 8, 1993 <br /> <br />Page 2 <br /> <br />Public Hearinll. continued <br /> <br />Karen Larson, a concerned citizen, was told that the facility is overtaxed and feels <br />the City needs to evaluate this so that Brightondale could financially succeed. <br /> <br />Alvera Mickelson said many Brightondale residents sold their homes so that they <br />could live independently. The majority do not need these services and are forced to <br />move or take services which are not needed. Because G & P purchased it over the <br />assessed value, they will need resources to make up for that cost. She feels the City <br />should not approve the bond sale or changing of the facility to assisted living. <br /> <br />Wally Carlson feels betrayed because he sold his home to move into Brightondale, <br />but now is unable to afford the additional expenses for assisted living services. <br /> <br />Phillip Carlson assists with his stepmother's finances and found if she stayed, she <br />would have a $100 deficit each month. He noted that many residents are having <br />difficulties with the proposal and have gone through emotional strain. The other <br />bidders would have kept Brightondale in its original state and he feels the "lack of <br />services" statement is incorrect. People chose the facility for its independent living <br />and are happy with its operation. He is against the good name of "New Brighton" <br />being used to assist this company in receivership of the property. <br /> <br />Rick Rosow, attorney representing, Capitol Indemnity, said Capitol is the largest <br />Brightondale bond holder and submitted a cash bid to buy the property with no City- <br />financing. Capitol holds $400,000 of the bonds and lost $95,000 in interest <br />payments, and could lose 35% of their principal. He noted a senior project in <br />Mankato which went into default and was purchased and became a success under <br />Capitol management. They feel assisted living facilities are overbuilt, and asked <br />Council to decide whether to become involved in a bond sale or allow Brightondale <br />to be privately financed. Capitol is a large investor and is interested in purchasing <br />Brightondale if the G & P project does not go through. Paul Breitnauer, Vice <br />President and Treasurer, Capitol, presented a letter of Capitol's concerns. <br /> <br />Gary Albrecht, G & P attorney, said Capitol hopes the G & P sale is undermined so <br />they can purchase Brightondale. A judge decided it is in the bond holders best <br />interest for G & P to purchase the project. Capitol does not have standing to object <br />to the sale. <br /> <br />Mr. Gould noted a market study which shows a high need for assisted living <br />facilities. G & P expects to put $500,000 worth of improvements into Brightondale. <br /> <br />Karen Dean, daughter of a resident, said if there is high demand for assisted living, <br />why doesn't G & P build a new facility. <br /> <br />Mr. Black said Brightondale was designed as a service oriented facility, not "cheap <br />housing", and feels there will not be a mass exodus after assisted living is installed. <br /> <br />Gunderman asked Mr. Black to address the issue of building a new facility versus <br />remodeling Brightondale. Mr. Black said G & p's research has found that existing <br />senior housing projects prefer assisted living programs. <br /> <br />Public Hearing <br /> <br />G & p's request for <br />Housing Revenue <br />Bonds for Brightondale <br />