Green Acres project could be lost if county makes too many changes

By MaryHelen Swanson
Some important issues came to the board table at the county Government Center last week in regards to the Green Acres nursing home project, which is a proposal to build a new facility on a new site in North Branch.
Linda Sutherland, director of facilities and compliance at the Minnesota Department of Health, appeared by request to talk about the countyís plan in connection with the financial assistance awarded to the project by the state.
She was asked if it is possible to amend the project that has been approved by the state and her answer was yes, but.
She told the board the appealing aspect of the proposal was the ìcampusî approach, particularly the inclusion of a clinic and eventually other senior housing.
She said people donít go to nursing homes any more to stay there, they recover, heal and go elsewhere.
For this reason, she said, the added senior housing was very attractive.
She also said that applying for and receiving the moratorium exception funding was a competitive process, so any modification to the proposal would have to be in writing. She promised any amended proposal would receive prompt attention.
She also told the board the county may never get this opportunity again.
She said the county must have all plans done and permits received within an 18-month period or it will lose the state funding.
Board chairman Ben Montzka asked her about changes in the plan over who would lease the facility.
Sutherland said that was not something approved by the state, it was the countyís choice.
Montzka asked about change in ownership (of Green Acres Country Care Center, which the county owns) and Sutherland again said the state does not care about ownership, but it does have the right to approve transfer of ownership to protect the residents of the facility.
The stateís approval, she said, was not about who is running it or how it is financed, but that the proposal was good for the community.
Commissioner Mike Robinson asked what would happen if the plan was amended to only include a nursing home.
Sutherland said then it would be difficult for the county to show to the state that all solutions in the current plan are being addressed, i.e. medical facility and assisted living.
In that case, she said, she would have a hard time recommending to the health department to approve the amended proposal.
She said she doubted the project would ever have been ranked as high without those elements.
As the project was delayed from last December until this month in order to update the new commissioners about the project, the county is looking at a 35-day window to make a decision about amending the proposal, in order to fit into construction plans, if it is to proceed with the project.
Sutherland also said she had no authority to extend the 18-month timetable.
Commissioner Rick Olseen asked if the county submitted an amended plan and it was rejected, would the county still have the original approval.
Sutherland said yes.
Sutherland expressed concern when she learned from Dr. Dan Anderson, CEO of Fairview Lakes Regional Hospital, that the hospital is committed in concept only to building a clinic near the nursing home.
He said the business aspects of the concept had not yet been studied. He said the hospital would not consider a clinic at the current Green Acres site because while they need a new larger clinic, it needs to be located closer to the city center. He said Fairview would need to evaluate a lot before making a commitment.
He said Fairview would love to have a clinic located with the new nursing home, but they need to know if it is financially feasible.
Montzka asked architect Jeremy Bjork of WAI Continuum, what the costs would be to change to location, that is, build the new nursing home at the present Green Acres site.
Bjork said it would be almost like starting over, at a cost of around $40,000-$60,000 because the current design could not be just ìploppedî there.
There are issues of high water table which, as noted, would probably eliminate the basement as planned.
Sutherland said the state really liked the design as presented and was concerned about the change in design. ìThis plan was by far the best submitted,î she said.
At this point Sutherland said the change of location, change in design, and possibility that no clinic is included makes a vastly different proposal.
She also suggested that there could be legal challenges from someone whoís proposal was not approved for funding if the amended project was accepted.
Montzka said he believed it was the countyís intention to sell the nursing home, he said he wants ownership changed.
Commissioner Bob Gustafson favored selling it but said he didnít feel it was urgent.
The question of financing came up with county financial consultant Carolyn Drude of Ehlers and Associates briefly discussing some differences in 501c revenue bonds and general obligation (G.O.) bonds.
Minnesota statute allows a county to issue G.O. bonds to build a nursing home, she said, if no more beds are added.
Cost of issuance of G.O. bonds is less than 501c revenue bonds, she said.
With the clock ticking, the board moved to have Drude research funding options and report back as soon as possible.

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