CCMtg05-15-95WSMinLONG WOOD CLTY COMMISSION
LONG WOOD CITY COMMISSION CHAMBERS
t'/5 W. WARREN AVENUE
LONG WOOD, bZOR1DA
MAY li, 1995
Present: Mayor Bill \Vinstan
Deputy Mayor lim Carrico
Commissioner Iris Benson
Commissioner Ron Sargent
W. Shelton Sntith, City Administramr
Geraldine D. Gambri, City Clerk
Richard S. Taylor, ]r, City Auoniey
Guests: Charles Grice, 6everly Enterprises
Stewart Campbell
Absent: Commissioner Annamarie Vacex
1. CALL TO ORDER May01' Winston called a work session to order at G:02 p.nt.
2. DISCUSS THE REFINANCING OF THE LONG WOOD HEALTH CARE
CENTER WITH R£PRESENTAI'IVES FROM BEVERLY ENTERPRISES.
Mr. Chuck Grine, representing Bcveriy Enterprises introduced Mr. Stewart Campbell and
n briefed the Comntiwinn o the History of the Lovgvood Health Care Center:
52,100,000 in bonds issued in l9'/9,tivterest 9.2i%, balaucn owed 51,665,000- He reviewed
the prior discussion between Ileverly and the City with regard to the potential purchase in
order to put eapiml ii cstment~ mid the rennaneing in order to rvchieve a lower it
He ated that refina clog would hav o be ompleted before disc
begin regarding the prircltase Cor legal xs well ns practical masons. He said only when dte
19'19 bonds are paid will title automatically come to Longwood and an [RS rvling says the
City cannot sell to 6everly nnti190 dxys after the bonds are paid oft. He emphasized that
refinanoing the 19'19 bonds will achieve an interest savings to Beverly and lower the wst of
opertingthepryec~Explaite<I theCitywill ac ondni r, pro eels will then be
rtsedato pay off dtet9~9 bovds, which will Ue oom~eoonrse to U n City. The ovly diftetance
between this bond vs. the 19"19 bond, is a lower in rest rate and that Longwood is imter
rather than the special purpose organiurtion. Hesaid an appraisal is now being done so the
value cen be determined. Saidthere are only two dates [hat the financing can take
placeslnly 1, I99>. and then six months Inter, with the final meeting to approve needing to
mke place in lone iu order nr refinance on July 1. Said this step bas no risk to the City and
6everly will pay all nxpeicsec -
Commissioner Sargent referrod to the conAe,nnation action. Further, said he hzd received
information in the mail with regard to Beverly Enterprises Ehat he did not Dave time
ead prior o the n ring. Thp ued disc regarding whether the
re(Inancing should uLeeplace before orvafter eie condentnattion action is esolved, the
esuits of the appaisal, considering the portion of land under wndemnation~whether the
ew bonds being issued would be on the re,naining portion of the property with Beverly,
nnA the City resolving a to horv Ote fitnds from the condemnation action ..ould be
dishibuted.
Mr. Griw said the documents have been sent to Mr. Taylor for his review and approval and,
o[ course, all were contingent upon his approval and passage of the ordinance. Mr. Taylor
said there were nv s the City should look at ~ coming ro an ngreement on the
Sh00,000-5600,000 of improvements and, second, thought it was in We interest of rite City
salve where the hinds will go [roan the wndvnnation and said he could not rtwntmend
refinancing leaving this open.
Mr. Stewart saiA they could ask Beverly if [hey were receptive to this proposal but thought
they would probably prefer not to hinge the te[nao<ing on the nvo items mentioned.
Disc of capital intpro hued and Mr. Grie raid they disc ctly said that
capital tinprovemenB wonldvbe wnside~ed and they never implied chat they would witl~Itold
matntevanoe, and that the Gcility will always be maintained to meet State requirmnents.
Mayor Winston noted that the ordinance as written has conFliets and askedif need be, could
it be nodiGed at publi<hearing? Mr. 7nylor said it onld. The repre of-everly
tad to stay for the firs eading of the ordinance; hove er, ereasdv sad that no
additional discussion was expected.
Mr. Stew said they would have rebpomes to rite City's qne bons between now end rite
public hearing.
3. ADIOURN
Motion by Deputy Mayor Carrico, seconded by Commissioner Sa vent to
adjourn. Carried by unanimous voice vote. Meeting adjourned at'1:05 p.m.
yiJSr-i /.~ 7'iv.~
WIIIiam E- Winston. Mayor
AfT
eral line D. ] '. City Clerk