City, county asked to assist in securing Glen Haven Village loan

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By Joe Foreman, Editor

The Mills County Board of Supervisors and Glenwood City Council have been asked to assist the Glen Haven Home Board of Directors in securing a USDA - Rural Development loan for the construction of the proposed Glen Haven Village skilled-care nursing facility.

The Glen Haven board is requesting “assured income” guarantees of $1.6 million from Mills County and $500,000 from the city of Glenwood that could be recognized as collateral by the USDA to help secure the $4.6 million loan. There would be no financial obligation to the county or city unless Glen Haven defaulted on the loan.

In a letter to the Glen Haven board, the USDA has indicated it would recognize the $2.8 appraised value of the Linnwood Estates assisted living building (owned by Glen Haven) as collateral to secure the loan, but not the agreement Glen Haven has negotiated with the state of Iowa for a 50-year lease of seven cottages on the campus of the Glenwood Resource Center. Glen Haven spokesman Phil Warren said some restrictions in the lease agreement imposed by the state would be in conflict with USDA regulations. Without the lease agreement recognized as collateral, “assignment of assured income from a governmental agency” is required for loan approval, Warren said.

The $4.6 million loan would fund the Glen Haven Village project and refinance existing debt on the Linnwood Estates construction loan created in 2004. The USDA loan would carry an interest rate of 2.75 percent and would be paid off over a 35-year period. Glen Haven has never missed a payment on its Linnwood Estates loan and  financial documents presented to members of the county board and city council suggest adequate funding would be available to cover payments for the USDA loan.

Glen Haven Home  Inc., has operated a skilled nursing care facility in Glenwood since 1964, but its existing building is outdated and in need of replacement. Glen Haven’s plan is to build a modern skilled and rehabilitative care complex among the cluster of  GRC cottages to provide a “homelike” setting for 75-80 residents.

A 2016 capital campaign, spearheaded by Warren, secured more than $1 million in donations and pledges for the project.

The county board of supervisors have pledged $50,000 in local option sales tax revenue to the project over a 10-year period and have also agreed to the assured income request, pending final review from the county attorney’s office.

The city has made no financial commitment to the project but council members are considering the assured income request.

Both city and county officials are expected to meet with Des Moines bonding attorney Bob Josten to discuss the Glen Haven request Aug. 8 when he visits Glenwood.

Warren said Glen Haven does have a deadline to meet with the USDA and he’s hopeful all loan application requirements can be met this month.