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02/27/1989 CITY COMMISSION SPECIAL MEETING Bethamy Gardens Nursing Home February 27, 1989 The City Commission of the City of Clearwater met at City Hall, February 29, 1989, at 9:05 A.M., with the following members present: Rita Garvey Mayor/Commissioner James Berfield Vice-Mayor/Commissioner (arrived 9:10 A.M.) Lee Regulski Commissioner Don Winner Commissioner William Nunamaker Commissioner Also present were: Charles A. Hunsicker Assistant City Manager M. A. Galbraith, Jr. City Attorney Cynthia E. Goudeau City Clerk The special meeting was called for the purpose of considering the proposed sale of Bethamy Gardens Nursing Homes. The City Attorney reported there has been a request to the City Commission to approve the transfer of ownership of Bethamy Gardens Nursing Home from Southwood Health Care, Inc. to Bethamy Living Care Partnership. Bob Woolen, General Partner of Bethamy Living Center Limited Partnership, stated they are proposing to acquire the nursing home and expand it from 120 to 150 beds. He stated it is an equity partnership and the only debt that will remain will be bonds issued in 1983. In response to a question, the City Attorney indicated there will be no liability for the City in approving this transfer. He further reported he has been in touch with the trust officers at the bank and they are in favor of the tranfer. He stated the City's consent is being requested due to previous cash problems and that the defaults of the current owners will be cured at the time of closing. In response to concerns regarding the financial ability of the new owners, Mr. Woolen stated that they will be reducing the debt of the facility and the equity funds would be used for expansion. He stated it is also in the agreement that management fees will be subordinate to operating costs. Michael Wright, Assistant City Manager stated he has been told by the financial staff of the State Department of Health and Rehabilitative Services that the new owners meet all the state requirements. He indicated there is no risk to the City. Commissioner Regulski moved to approve the Assignment, Consent to Assignment, and the Estoppel Agreement. The motion was duly seconded. Upon the vote being taken, Commissioners Regulski, Winner, Nunamaker, and Mayor Garvey voted "aye,", Commissioner Berfield voted "nay." Motion carried. The meeting adjourned at 9:19 A.M.