8D. IRB Windsor Nursing Home Associates
CITY OF SALINA
REQUEST FOR COMMISSION ACTION
DATE
12/10/1979
TIME
4:00 P.M.
AGENDA SECTION:
NO. Administration
ORIGINATING DEPARTMENT:
CITY MANAGER
APPROVED FOR
AGENDA:
BY, ~
ITEM
NO. D
BY: Rufus L. Nve
Letter from Lee F. Sut1iffe, Fiscal Agent, r~quests the issuance of Industrial
Revenue Bonds to purchase and enlarge a nursing home at 623 South Third Street.
The application is by Windsor Nursing Home Associates, Ltd.
Information has been provided based on the Commission's established policy. The
requ~red $500 fee has been paid. It has been the City's policy in the past to
put these on the agenda and then to convene into Executive Session.
It is our recommendation this nursing home be required to pay all taxes, allowing
no exemptions.
COMMISSION ACTION
MOTION BY
SECOND BY
TO:
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LEE F. SUTLIFFE'
6203 SOUTH GALENA CT.
ENGLEWOOD. COLORADO 80111
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6 1979
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eIT'I' CLCRI{S C;"FIC:
303.779.
December 3, 1979
Lawrence O. Bengston, Esq.
Attorney at Law
Post Office Box 903
Salina, Kansas 67401
Re: Proposed $1,450,000 City of Saline Nursing Hone Revenue
Bonds, Series 1980; Windsor Estates Convalescent Center
Dear Larry:
With reference to your request for additional supporting inforrration in connection
with the above styled matter, please find enclosed:
1. 'IWo Xerox copies of the Appraisal Report dated October 10,
1979 for the property which was executed by 'Ibm McReynolds,
MAl -SRPA, Mc:Reynolds Appraisal Company, Inc., St. !.Duis,
Missouri.
2. 'IWo copies of the Purchase Agreerrent between Windsor Nursing
Horre Associates, Ltd., a Kansas Limited Partnership (the
"Purchaser") and Christian Hunanics Foundation, Inc. (the "Seller")
for the nursing home.
3. 'IWo copies of the proposed Management Agreerrent between the
Purchaser, as Lessee, and L. Robert McLaughlin, individually
which will be executed at the time of closing.
4. 'IWo copies of the Financial Statements for both limited partners
of the Purchaser. 'Ihe limited partners will also be the officers
of the general partner.
5. Addi tional copies of the Preliminary Bond Issue Sunmary.
6. Revised Statements of Profit & !.Dss for the prior years in which
the current owner has owned and operated the Project.
7. Revised Proforrra Statement of Profit & !.Dss for the 12 IlDnth period
i..nrrediately follaving the completion of the 22 bed addition. 'Ihis
statement has been revised as explained herein.
,
,
,
~/
Iawrence O. Bengston, Esq.
D2cember 4, 1979
Page 2.
When ~ net in your office last ~, I advised you regarding the revlslons in
the prior operating statem:mts. When we net with Rufus Nye and I had the benefit
of his comrents regarding the net operating profit, I becane concerned because
of the declining net profit results. Arm McCall and I i.n1rediately reviewed the
financial staterrents and discovered that I had prepared sane from incone tax returns
of the owner which also included other expenses which ~e apparently charged to
the nursing horre. Arm McCall keeps a very accurate set of records for incone and
expenses and ~ prepared the proper revised staterrents from her records. Also,
sone of the costs of the apartrrent operation were reflected in the old statenents
(but not the incone) so I thought it best to break out these costs and include
a statenent of apartIrent operations. At any rate, the enclosed statenents are now
correct and accurate and are the sane staterrents which will be incorporated as part
of the financial feasibility study now being prepared by May, zina and Coopany,
C.P.A., Atlanta, Georgia. 'Ihey have conpleted their preliminary inspection and
revi€'W' of the project and will issue their report sonetirre during the next two
or three ~s at which tine a copy will be fo:rwarded to you.
During our several rreetings, you have asked sorre very pertinent questions which
I have attenpted to ans~r as accurately and specifically as possible. Since the
ans~rs are sorrewhat lengthy, I have prepared and attach a seperate Exhibit with
the questions and ans~rs included and have nade several copies so that you can
distribute them to nerrbers of the City Ccmni.ssion prior to the rreeting on ~.bnday,
D2cerrber 10, 1979. Perhaps these question and answer sheets will be helpful in
clearing up general questions which the Cbnmissioners may have and save everyone
sorre tine in the executive session.
'Ihe basic inducerrent resolution indicating the interest of the City of Salina in
this Project is essential so that documents nay be preparea and filed with the .
Kansas Division of Securities. Final resolutions will be offered for adoption
prior to the closing of the transaction which ~ \\QuId like to schedule for early
in February, 1980.
'Ihank you again for your help and assistance and for the kindness and courtesy
which you and Rufus Nye have shown us. We are IlDSt appreciative am do hope that
our project will rreet with the favorable consideration and approval of the City.
I will be in Salina about noon an M::>nday, D2cerrber lOth and will make myself
available to you should you have further questions or wish ne to rreet with anyone
prior to the fornal rreeting.
/,A
V,t&,lY your..s,
"7 ____
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Lee F. Sutliffe \.
Fiscal Agent
LFSi P
Enclosures