Friday, April 17, 2009

Boone County gave a $580,000 gift to the “The Glen of Belvidere”, Assisted Living Facility

Since December 2008 I have been asking questions to city and county officials concerning the proposed assisted living facility.  The county has granted a sizeable gift to the developers of this project, the Kensington Group which operate North Woods and Maple Crests Nursing Homes in Belvidere.  The actual transaction for much of this gift was finalized in 2006.  I am very surprise that it has been so difficult to obtain the nature and value of the transaction. 

Value of land, (see the recent email from Mr. Terrinoni):  $470,340

Donations from Maple Crest Charitable Trusts for landscaping:                                                                                         $110,000

Plus there are a few more costs to the county. There also was $7,500 paid in 2007 to a grant writer for an unsuccessful state grant application and the in house costs of the 2008 application.

Previous I have questioned whether a tax  assessment agreement similar to that proposed in the Peaker Plant be attached to the lease.  It is not possible to require Kensington Group (nor the peaker plant) to arbitrate any future tax assessment on the assisted living facility, (see email below.)

 

In response to Mr.. Mattison's letter to me dated March 23, 2009, below are answers to your questions as I understand them:

1.  Regarding questions on tax assessment:

     A.    Per recent legal advice given to the County Board in reference to the "peaker plant" tax assessment, we cannot as county officials involve ourselves in the process of determining taxable value for properties.  In similar fashion we cannot pre-negotiate the property taxes for the new supportive living facility.  I did provide my best guess of those tax revenues and a spreadsheet is attached.

2.  Regarding questions on the lease:

      A.    The final lease is not yet negotiated with the company or HUD and what value is placed  What we have in place now is a Memorandum of Understanding that sets out the obligations of the parties. I sent that to you some time ago.  Adding the land to the proposal gave the County the edge in receiving the state tax credit award of 9%.  In addition to that cash has been pledged for landscaping and other improvements that were necessary to receive the tax credits.  Thus, the land would be considered a financial concession to make the project qualify for tax credits.

3.   Regarding additional costs to the taxpayers:

      A.  I can only think of gain to the taxpayer through additional property taxes and up to 40 jobs being created. The company has promised to cover all costs related to extending sewer and water to the site.

4.   What is the value of the land?

      A. The appraisal at the time placed the value of the land at $470,340.

Mr. Terrinoni

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