Posted: 3/3/04
By MaryHelen Swanson
A new nursing home may be on track again in North Branch, replacing the current Green Acres Country Care Center.
The county commissioners recently accepted proposals from four groups desiring to be the provider of the nursing home and senior care facility the county has been planning for several years.
One proposal did not include anything other than a nursing home and was not considered.
Two of the remaining proposals were studied by John Racek and Gail Miller of LarsonAllen, hired consultants, and two commissioners: Rick Olseen and Lora Walker, as liaisons to the board.
But the discussion returned to the board room last week when it was decided the entire board should make a decision about a provider.
Discussion was long.
The two proposals under scrutiny belong to the Board of Social Ministry, the current operators of Green Acres and a proposal for The Colony at North Branch, a partnership of the Ebeneezer Society, Fairview Health Systems and Senor Care Communities.
A third proposal, from the Augustana Care Corporation was not included in the discussion.
The board chose to go with BSM but under a revised proposal than had been submitted initially.
The first proposal required the county to sell the current nursing home property to BSM for $1 and in doing so, the county would be out of the nursing home business and free of all risks involved in future concerns, such as any potential closing of the facility.
The county, it has been decided, wants to be out of the nursing home business.
In the accepted proposal, which passed 3-2 with Commissioners Walker and Ben Montzka opposing, the county would provide a $1,375,000 interest-free load that would be paid back from excess cash flow on the nursing home revenues only. It could take 20-30 years to pay back the loan, it was noted.
BSM would then assume the risks of the operation and the county would waive the $15,000 monthly payments from BSM for Green Acres operations until the new building is ready for occupancy.
If BSM is not able to rebuild, the county would have to look long-term at closure of the current facility.
The Colony proposal did not include provisions for assuming ownership of the operations, nor the risks of the operations during the period before the new home is built.
Still, Racek noted, The Colony proposers were confident they could have done the project. No one from that group was on hand for the meeting last week.
Three people were in attendance representing the BSM proposal.
A representative of Augustana was also on hand.
During discussion, Commissioner Bob Gustafson said the cleanest way to address the issue would be to accept BSMís first proposal and get out of the business.
Commissioner Mike Robinson said he originally did not want out of the nursing home business, but agreed now that itís the thing to do.
He also suggested going with the first proposal by BSM with an option of first refusal on buying back the land if BSM put it up for sale.
Walker was concerned about losing the land and about buying back something the county already owns.
Gustafson said it would be different if the land was located elsewhere.
Commissioner Olseen was also concerned about the loss of the land and the 30-year payback. He said the county needs the nursing home, but it also may need the land.
Petitions from some employees at GACCC were discussed, having been submitted to the board twice. Racek cautioned the board not to get involved as the operations were owned now by BSM and the county does not have ownership over employees issues.
It concerned Commissioner Walker that only two proposers were given the opportunity to make adjustments to their proposals.
A number of motions were made before the board made its final decision of a provider.
Chairman Robinson stepped down and seconded a motion by Gustafson to go with BSM. It was not designated which proposal was to be considered, selling the land for $1 or the interest-free loan of $1.3 million. The motion failed 3-2.
A motion to table action until March 31 also failed, 3-2, with Walker and Montzka opposed.
Finally, Olseen moved and Gustafson seconded a motion to accept BSMís adjusted proposal with the county upfronting the $1.3 million loan and keeping the land. It passed, 3-2, with Walker and Montzka opposed.
In other business, the board:
ď set a public hearing for March 31 to adopt the library redevelopment plan;
ď appointed Loyal Hyatt to the Dist. 4 position on the Extension committee, and Colleen Kastanek to the at-large position; and
ď appointed Lin Strong to the new at-large position on the planning commission, choosing her from a list of 13 applicants.
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