A newly formed city commission approved a resolution for the potential purchase of Holly Hill Healthcare Center, Brazil, Monday night.
It was the first-ever meeting of the Brazil Economic Development Commission, which was necessary to form due to a bond issue which is at stake for the purchase to move forward.
Hoosier Care, Inc., which manages the Clay County Health and Rehabilitation Center, Brazil, is in negotiations to purchase Holly Hill, and is applying for a bond to assist in the purchase.
If purchased, the plan is to consolidate the residents of both facilities, which are at half capacity, and turn the then unused building into an assisted-living, Medicaid-waiver facility. This route is favored in lieu of creating a nursing home because it would save the state money.
As part of the purchase, the approximately 100 employees between the two facilities would retain their jobs.
"We do not anticipate cutting any jobs with this move," Lynn Redmond, President of Medical Rehabilitation Centers, Lexington, Ky., said. "We want to make sure that the residents we do move are able to maintain the same caregivers in order to keep some level of comfortability."
Hoosier Care, Inc., would be completely financially responsible for the bond, which is not to exceed an amount of $4.5 million. Only a maximum of $3.5 million of the bond can go toward the purchase, while the remainder would be used for renovation costs and debt service protection costs.
The commission unanimously approved the resolution, which gives a positive recommendation to the Common Council of the City of Brazil to approve the ordinance for the bond at their meeting tonight.
The city would have no financial responsibility for the bond, but state statues require a governmental institution to officially issue bonds in economic development situations.
Also, some housekeeping needs were in order as part of the first-ever meeting of the commission, .
Clay County Council President Mike McCullough was named president, Erich Erst, who was appointed by the Common Council of the City of Brazil, was named vice-president and Brazil Planning Administrator Michele Griffin was named the commission's secretary.
By state statutes, the commission is only required to meet once a year, although they may meet additional times as needed. The commission's annual meeting will take place on the third Monday in February at 6 p.m.
The commission also approved their by-laws and approved an initial report which is simply a notice to the state of the formation of the commission.
The next meeting of the Brazil Economic Development Commission will be Monday, Feb. 18, 2008, at 6 p.m., in the Council Chambers of City Hall.