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It’s back to the drawing board for the City of Gaylord as it continues to negotiate the proposed sale of Gaylord Lakeview Homes (Lakeview Home, Oak Terrace, Heritage House).

“Nothing is decided yet.”

Those were the words of Gaylord Mayor Doug Quast last week. He provided an update on the progress of negotiations to a crowd of approximately 40 people attending Wednesday’s City Council meeting.

In late August, council members directed City Administrator Lonny Johnson and City Attorney Doug Nesvig to begin negotiating with developers Mick Montag and Dennis Hood of Mankato. The City Council has expressed interest in getting the City out of the health care business. Council members believe a proposal by Montag and Hood provides the best long term benefit for the Gaylord community.

On Tuesday, October 3rd, Johnson and Nesvig presented a proposed sale agreement to council members in a closed meeting. Details of the agreement were not made public.

This agreement only included the “main points” of the negotiations, according to Nesvig. Precise details about current residents and staff had apparently not been discussed.

Before council members received the proposed sale agreement, City officials heard some suggestions from Lakeview Homes interim administrator Mary Nell Zellner and Lakeview board member Ron Reinmuth. Zellner identified some things that should be included in a sale contract. Among those suggestions was including precise verbiage in the contract which would protect the residents and the current staff.

Mayor Quast said the sale agreement presented to the City last week had “a lot of open ends.” He said the City needs professional expertise so it is on the “same playing field” when negotiating with Montag and Hood.

Following the update on the negotiation progress, the council fielded more questions on future of Lakeview Homes.

One member of the audience asked why the City opted to negotiate with Montag and Hood and not Augustana which also proposed purchasing Lakeview Homes. A consulting firm recommended that the City negotiate with Augustana first.

According to Mayor Quast, Augustana provided no guarantee that it was going to improve or expand the facility. He believes the proposal by Montag and Hood provides the best long term benefit to the City.

“Increasing our health care facilities is the goal,” Quast said. “[The City] has no intention of taking away the pride of Lakeview Homes, but want to add to it. Our goal is to create a health care continuum and expand where needed. This may be our opportunity to enhance our health care community in the long term.”

With the possible sale of Lakeview Homes, there is uncertainty among current residents and staff and potential residents and staff. One member of the audience asked if their “loved one” will have a home. Quast answered by saying there will be a spot for nursing home residents. There is no need to look elsewhere, Quast said.

City Administrator Johnson reported Tuesday that the City is currently seeking “experts” in the nursing home field to assist in the negotiation process. Public meetings will soon be established to provide more public exposure to the proposed sale agreement, Johnson explained.