2002-01-07 - Laserfiche WebLink

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236 Walker said that while the facility is in good shape, with a fairly new roof and kitchen~ there are landscaping needs. Ms. Richards said that some have expressed concern about the precedent of the City subsidizing such a facility since it is the State's responsibility even though they do not do so sufficiently, and asked what is to prevent the same thing happening in other facilities and what should be expected. Ms. Peacock said that she cannot answer what to expect, but one difference in this proposal is that it is a partnership between the City, County and a non-profit agency, and most other facilities are not non-profit. Ms. Peacock said it is hoped that the City and County will get a return on their investment. Mr. Walker said that this proposal will address the very significant impact closing Windham would have on clients from Albemarle County and Charlottesville. Mr. Walker noted that Jefferson Eldercare will actually manage the facility for JABA. Responding to a question from Mr. Caravati, Mr. Walker said that upper end assisted living facilities in the Charlottesville area are saturated, but the challenge is low and moderate income facilities. Mr. Walker said he hopes that referrals will increase because of JABA's credibility, but said that marketing to private pay clients will be challenging. Mr. Caravati asked if Piedmont Housing Alliance loan will be considered part of the private subsidy raised, and Mr. Walker said no PHA funds will be for capital, not operating. Mr. Caravati expressed concern about the operating as well as capital reserves, particularly in the first two or three years, and Mr. Stoner said that the subsidy is viewed by the lender as a reserve and if it drops below $75,000, they will be required to stop and re-evaluate. Mr. Stoner said they will have to demonstrate that the subsidy is needed to be used. Mr. Toscano said he understands that the City and County may get some of the subsidy back, and Mr. Loman said there is the potential to have the excess over what is needed returned to the sources that made this happen after 72 to 80 months. Mr. Caravati said that the proposal is coming in the form of a grant, and he asked what harm would there be in making it a loan with a nominal interest rate. Mr. Walker said that the JABA Board of Directors was very emphatic that they cannot obligate themselves to a loan because of the risk involved. Ms. Richards asked if the City and County will have a say in renegotiating if that becomes necessary, and Mr. Walker said yes. Mr. Toscano said that having a management committee would allow some public oversight of the mix of beds and target rates charged, would provide some way to recoop the City's investment, and would provide a little more control. Mr. Toscano said that he is concerned about the precedent, but thinks the City should serve as a catalyst to try to make the project happen. Mr. Toscano said that one reason he supports it is because funds have been identified that can be used. Regarding the question of a loan versus a grant, Mr. Toscano said a loan, even at no interest would be easier to justify, and it could be renewed after three or five years. Mr. Toscano said he feels there should be some sharing of gain to the extent there is any, and a management team could help ensure gainsharing and make sure the taxpayer interest is protected. Mr. Stoner said this is not a "get rich quick" scheme, and no profit will be taken. Mr. Stoner said that the City and County subsidies will be for the purpose of protecting the auxiliary grant clients, and noted that it will take $70,000 to raise all employees at the facility to a living wage. Mr. Stoner said he thinks requking a loan is unreasonable. Mr. Stoner said that if the facility is converted after ten years any remaining money will be