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Potential buyers of Lakeview Homes say they have no interest in closing the nursing home and want only to expand and improve the facilities. The developers proposing to purchase Lakeview Homes (the nursing home, Oak Terrace, Heritage House) recently responded to several questions posed by city officials. A copy of the “question and answer” packet is available at City Hall or the EDA/Chamber of Commerce office.

We have no interest in closing the nursing home…..

The City of Gaylord will be paid back before we can recover any of our initial $1 million investment…..

Those were among the answers recently provided by developers Mick Montag and Dennis Hood who are proposing to purchase Gaylord Lakeview Homes (Lakeview Home, Heritage House and Oak Terrace).

City officials have considered getting the City of Gaylord out of the health care business due to financial struggles at Lakeview Homes. Interest in selling the facility piqued earlier this year with a proposal by Montag and Hood.

For the past two months, the City of Gaylord has been negotiating exclusively with Montag and Hood, developers who operate a senior health care facility in North Mankato.

Montag and Hood recently responded to several questions posed by City Administrator Lonny Johnson and Gaylord’s Economic Development Authority (EDA) Coordinator Pat Pinske. Below is a summary of Montag and Hood’s responses. Complete question/answer packets are available at the City Office or the EDA/Chamber of Commerce Office.

Why do you want to invest in Gaylord? We believe Gaylord will benefit from offering a single facility that will provide continuous care for senior citizens. Our extensive research supports our personal belief that a continuum of care campus in Gaylord will be successful.

Why did you choose Gaylord as the best site for a new facility? The location of the facility next to Lake Titloe and the City Park provides a beautiful, relaxed setting for senior citizens. We have heard many good comments about the terrific quality of care that residents receive at [Lakeview Homes]. Gaylord’s desire to take care of its senior citizens is similar to our approach. We are impressed by Gaylord’s citizens who volunteer at the nursing home. A high quality of life for senior citizens results from caring volunteers. We want to expand and improve Gaylord’s existing facilities, so it is enjoyable for people of all ages.

What do you plan to do with the existing home? We plan on keeping the existing nursing home and making it even better. We plan to remodel the nursing home within the first 12 months of acquiring the facility - converting some of the existing double bedrooms into single bedrooms; adding rooms at Oak Terrace and Heritage House.

How will the residents be moved? What will be the transition process? The total transition plan has not been completed. Our first step will be to improve and add new apartments to the nursing home so that current residents of Oak Terrace can move easily to a new apartment within the same building.

How will the facility better meet the needs of the residents? Upon completion, Gaylord will have a state-of-the-art senior living facility campus with everything in one building. We will offer new and improved dining facilities, recreational facilities, better rehabilitative areas, improved privacy, and easy access for volunteers.

What are your plans for current employees? Our goal is to utilize the Gaylord work force. We are interested in Gaylord, not just because the location of the nursing home is extraordinary, but because the community and the employees take such great care of the nursing home residents. We want to keep the current employees if at all possible. In addition, we plan on adding another 15-25 jobs.

How and when will the City of Gaylord get back its financial investment? Any financial investment that Gaylord makes in this facility will be fully-secured by the facility. In addition, we are personally guaranteeing repayment to the City of Gaylord. We anticipate that Gaylord will receive annual income from the facility because we will be paying interest to the City on any money that Gaylord invests in the facility. The City of Gaylord will be paid back before we can recover any of our initial $1 million investment.

How is your ownership of the facility a better deal for the taxpayer? The only things that change are ownership and size of the facility. The city gets more high quality housing for senior citizens without having to incur the cost of building the facility.

Do you plan to use any park land or cut down any trees? We are not buying and we do not intend to buy any land in the City Park. We may need to take down a few trees on the land that the nursing home currently owns in order to create our senior campus, but we are trying to avoid this if possible.

Gaylord City Attorney Doug Nesvig, on Wednesday, updated council members on negotiations with Montag and Hood. According to Nesvig, a proposed sale agreement is currently being reviewed by the City’s financial advisors (Northland Securities). Nesvig said a public meeting, to disclose terms of the sale, may be held in early December.