CCMtg03-20-95WSMinLONGWOOD CITY COMMISSION
LONG WOOD CITY COMMISSION CHAMBERS
LONGWOOD, FLORIDA
MARCH 20, 1995
PRESENT: Moyor Iris 6enson
Depary Mayor Jim Carriut
Commissioner Ron Sargent
Commissioner Bill Winston
W. ShelNn SmiN, City Adminiso-amr
Richard S. Taylor, Jr., City Ananey
Geraldine D. Zamhri, City Clerk
Dan McNuu, Fnance Director
F,va Neisler, Deputy City Clerk
ABSENT; Commissioner Vacca
1. CALL TO ORDER.
Moyor Ben celled Ne Work Session to order at 6:00 p.m Mayor Benson annvuncW Nat
Commissioner Vacca had called and would nor be anentling the work session but woulJ be at Ne
regular meeting following.
2. PRESENTATION BY BEVERLY ENTEAPRISES REGARDING LONGWOOD
HEALTH CARE CENTER.
Mr. Charles Grice, from Ne law firm of Partin, WarfielU & Kavaday, who represents Beverly
Enterprise nttaluced himself. Mr. Crice also informed Ne Commission that Mr. Pietrzak, vice
President of opea0ons, should be arriving shoNy.
Mr. Grice gave a history of Ne existing bond which was issuN in 19'19 for $2,100,000 m
Longwood Health Care, inc., a nut-tor-profit organiration, who in turn leased Ne facility to
Mediplex, Inc., a profit making company. The origival bond was used for tax exempt financing
for the conswction of the nursing home. Mediplex, Inc., afar-prof[ company acquired the
property in t982, which is allowable under Ne IRS. Dvder the provisions of the hovq uptm
maNrity in 2009, Ne ownership of Ne nursing home would revert to Ne City.
Mr. Grice farther explained Nat Beverly Evte[prises would like to refiwnca Ne 1979 bond
lowering the interest ram fmm 9 1/4% ro 7 llb% interest. With refnanciog the bond, Rhe City
would necome o 'conduit" issmx. The Gry would in tom lease Ne facility hack N Beverly
Enterpnsea until 2009. Upon refinancing, Beverly Enmrprses would place a "put option" on
Ne property xnd commit to buying Ne facility. Beverly Enterprises is offering w pay fair market
value Nr Ne property, less Ne principal amouvt of Ne refinanced bovtl, nnU hes agreaf to pay
or Ne appraisal. In addition, they alts furnish the City with a list of national nursing home 1
appraisers to choose from.
Mr_ Grice explained that Beverly EnmrDns tsidering epprox ately $600,000 of capital
improvements to Ne site. In addition to cosmetic re a physical therapy censer is
planned. Due to the considerahle atvovnt of proposed upgtadtes nNey are seeking affirmation Nat
Ney will ultimately nwn Nis property. Mr. lira Pleo-rak, Vice Pruitlenl of Acqulsilions and
Mr. KGIy Gill, Vice President of Operations„joined the meeting al this time.
Mr. Grice sa10 he wovltl compose a letter for Ne Commission on Beverly Enterprises offer to
the City.
Mayor Benson opened Ne trout for comments and questions. Commissioner Sargent inquired
who curtently holds the title Ia Ne bonds. Mr_ Grice replied, Longwood Hea1N Care Center,
alNOUgh once paid, Ne City of I..ongwood. Commissioner Sargent also asketl if Ne City coulU
select a local appraiser and possibly have the building appraised for not only a nursing home,
But other uses. Deputy Mayor Carrico also felt Nal Dossibly a local appraiser could be used.
Grice felt that Beverly Enterprises would accommodate Ne Ciry's desires but felt Nat a national
ompeny wiN experience in Ne nursing home fieltl may he mare favomhle, Mr- Piearak atlded
that the last aDDraisnl cast Ne firm approximately $5,000.
Mr. Taylar wanted m clarify Nat Ne land was for Nirty Years, not twenty-live, and Ne City
of liable if Beverly Enterprisns defaulted. In addition, Nat Ne proposal was Nat Ne City
would be paid Cot the property now, but ownership would vat revert to Beverly until 2009_ '~
I
A general diuussion began oval Ne propottd renovations and Ne curtent condition of the
property. Commissioner Sargent proposed a work session he scheduled for Ne Commission to
further review Nis issue with the Mr. Taybr antl Mr. McNutt in attendance. The Commission
agreed to delay dte Twenry Year Plan work session anU replace wiN a work session concerning
Beverly EnterDrlsea' proposal for Igvgwood HwIN Care on Monday. April 3, 1995, prior to
the regular meeting.
3. ADJOURN.
Mayor Benson Nankin ail in attendance. The meeting adjovm at 6:58 p. m. wiN a fve minute
break prior to Ne regular meeting.
Irr~ L. Beni'"
Eva R. Neuter, Deputy City Clerk