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Following the negotiation committee’s recommendation, Gaylord’s City Council, on Wednesday, agreed to hire a firm to evaluate the potential buyers of Lakeview Homes.

Three months ago, the City began to consider getting out of the long term health care business after receiving a proposal from a Mankato developer. Since that time, the City has received four other proposals to buy Lakeview Homes (Lakeview Home, Heritage House and Oak Terrace).

On August 1st, the negotiation committee heard half-hour presentations from four prospective buyers. Another proposal was by letter, according to Dick Hebeisen who served as spokesperson for the negotiation committee.

Hebeisen said the committee is looking at “more than price” when considering a potential buyer. He listed the following priorities:

• continue to provide care [at Lakeview Homes] and provide jobs for as many as possible;

• find a buyer with a proven track record which will run a good facility for the community;

• put as much money in the City’s coffers as possible;

• check track records of potential buyers;

“We are not only looking at top dollar, but also want to sell to someone who is going to do well in the community,” Hebeisen said. “The nursing home is a point of pride in town and it has built value over the years.”

Hebeisen told council members that the negotiation committee doesn’t have the resources or expertise to check track records. “We need someone smarter,” he said.

Council members agreed and approved hiring Pathways, a consulting firm which recently provided the City with an evaluation and assessment study of Lakeview Homes.

According to City Administrator Lonny Johnson, Pathways will evaluate the prospective buyers at a cost of $140.00 per hour. It is estimated to take 20-30 hours to complete the work, Johnson explained. A report will be provided to council members prior by the August 16th City Council meeting, Johnson explained.

Last week’s meeting was considered to be a drop dead date for the City to make a decision on the sale of Lakeview Homes. Hebeisen said a 60-90 day window “would be more reasonable.”

According to Hebeisen, the City’s time restraints are too restrictive. More time is needed for adjusting proposals and negotiating, he explained.

If an agreement is reached with a prospective buyer, the transition will take time. Hebeisen said the City can expect a six month to one year period between an agreement date and a closing date.