SPICER -- The Spicer City Council authorized the issue of bonds for GlenOaks Senior Housing and Care Center in New London at the regular meeting Wednesday.
The board unanimously approved the resolution, which will allow Living Services Foundation LLC to bond up to $14 million to refinance and make improvements to the facility. Spicer was asked to issue the bonds because New London would have faced higher interest rates on its own bonds if it had issued the GlenOaks bonds.
Dennis Kamstra, president of Living Services, explained that the plan is to add 15,000 square feet to the GlenOaks facility, make infrastructure improvements and to make every room a private room. Living Services purchased GlenOaks from the Juhl family this spring.
Janice Carlson, Spicer, questioned the council and questioned why New London couldn't issue the bonds.
"It's a mistake for us to underwrite this. I can't understand why they aren't taking that next step," Carlson told the council. "I'm disappointed with the council; it's the friendly thing to do? Are we the good Samaritans of Kandiyohi County?"
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Carlson also questioned the joint powers agreement between the cities, which is required for the bonding to be completed. Ben Johnson, bonding attorney for Kennedy and Graven, explained that Spicer is approving the bonding at the request of New London, that neither city is obligated to pay on the bonds and that the borrower is paying all of the costs incurred by both cities. The city will receive $25,000 in consideration for approving the bonds and can spend that money as it wishes.
Spicer is working on plans for new playground equipment at the downtown park. Johnson noted that Pine City recently completed bonds for a project in North Branch and used their consideration money to pay for playground equipment.
In other business, the board:
- Heard a report that the park board will host a celebration at 7 p.m. Thursday at Prairie Meadows to review the design drawing of the custom playground planned for the city park. Community fundraising for the playground will begin this winter.
- Approved amending the resolution to apply for state grant funding for the Erickson Memorial Library expansion project. The grant application amount was reduced to $158,888 because it cannot contain funding for shelving. Citizens have pledged $40,000 to the project, according to city administrator Kimberly Wothe.
