HomeMy WebLinkAbout1986.10.02 CITY COUNCIL MINUTESSPECIAL CITY COUNCIL MEETING
NURSING HOME
October 2, 1986
1
Those present:
Mayor:
Councilman:
Councilwoman:
Also Present:
John C. Porter
Bruce Casper
Sander Larson
Nile Boyle
Darlene Blackburn
Mary Smith, City Attorney
Rose Bagley, City Clerk
Richard Horner, Treasurer
Jeff Summers, from ECIPDA, was at the meeting to discuss the loan for the Nursing
Home. We started out with the company called Americare. The company was taken
over by a company called Care Enterprizes. Care Enterprizes has by far the greater
number of beds. During the course of taking it over, the man that founded Americare,
Ralph E. Hazelbaker, put together a group called Ohio Investments. He is the person
who founded and made Americare what it was. When Care Enterprises took over Americare
they offered Ralph a position in their organization. Ralph decided to leave that
organization after one year and form his own group, thus leaving Americare as a
subsidiary of Care Enterprizes. So then he left and broke off, during the process
he got the rights to the nursing home in Rexburg. He formed a company called
Paridime. He is in the process of taking this nursing home and putting it together.
When they do the nursing homes, what he does is he comes in and he has a parent
company and he has subsidiaries. He forms partnerships for each nursing home. For
this particular nursing home he formed a Rexburg Geriatric Care Company. He is in
the process of taking this nursing home and putting it together. This is the Ohio
limited partnership. When he formed Paridime, the only financials they have is
internally. Initially we need to get a corporate guarantee. Care Enterprizes
and Americare, and Ralph was going to sign on it. Paridime is a new company
approximately 6 months old, and the financials they have are not audited, Ralph
is the general partner of this company. We have his financial and we are running
some credit checks on him. He is a partner is some nursing homes in Arizona.
He appears to be fairly legitimate, he has about 12 million dollars. When you
deal with a person with that magnitude, things come and go so quick with
purchasing and expanding and so forth. His track record is good. He is a big
operator. Jeff said he had a question on the financials on Paridime. They
are trying to get a personal guarantee signed by him. He suggested having an
independent firm come in and audit the records.
Nile Boyle said he thought we need to check on Paridime, you might not get a
personal guarantee. If something happens we will end up with a building but
will need a management team.
Mayor Porter said Mary Lee Woolf was in, the said that in Oregon, they managed
the nursing home locally.
The mayor told him to go ahead the way you are doing, we just wanted the
council to know what was going on.
The mayor told the council that a Disco wants to go into Blocks Building.
The council discussed it and felt there was an ordinance stating they could
not put one in, but agreed to let them go ahead.
Ma C. Porter
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