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HomeMy WebLinkAboutCounty Board of Supervisors - Minutes - 4/19/2023 1 Bayfield County Clerk Lynn M. Divine, County Clerk Kim Mattson, Accountant Jeran Delaine, Deputy Clerk Gail M. Reha, Bookkeeper Paige Terry, Clerk III Ph: 715.373.6100 ● Fx: 715.373.6153 ● Email: Lynn.Divine@bayfieldcounty.wi.gov ● 117 E. Fifth Street, PO Box 878, Washburn, WI 54891 Minutes Special Meeting of the Bayfield County Board of Supervisors April 19, 2023 Meeting Held Virtually Via Microsoft Teams Call to Order: The meeting of the Bayfield County Board of Supervisors was called to order at 6:01 p.m. by Bayfield County Board Chairman, Dennis M. Pocernich. A roll call was taken by County Clerk, Lynn Divine, as follows: Steve Sandstrom-present; Larry Fickbohm-present; Jeremy Oswald-present; Mary Dougherty-present; Charly Ray-present; Jeff Silbert-present; John Rautio-present; Fred Strand-present; Dennis Pocernich-present; Brett Rondeau-present; Marty Milanowski-absent; Madelaine Rekemeyer- present; Jim Crandall-present. Total: 12 present, 1 absent. A quorum was present to conduct business. Others Present: County Administrator- Mark Abeles-Allison; County Clerk- Lynn M. Divine; Corporation Counsel- John Carlson; Accountant- Kim Mattson; Northern Lights Services Board Treasurer- Mark Ehlers; Northern Lights Services Board Member- Ellen Avol-Law; and Clerk III- Paige Terry Bayfield County Resolution No. 2023-45: Providing $500k Loan to Northern Lights Services, Inc. 2023 BE IT RESOLVED, by the Board of Supervisors (the “Board”) of Bayfield County, Wisconsin (the “County”), as follows: 1. Under Wisconsin Statutes, Section 66.0621, as amended (the “Act”), the Municipality is authorized and empowered to issue revenue obligations to finance all or any part of the cost of acquisition, construction, equipping, improving, enlarging, or extending of public utilities, as defined therein. 2. Under and pursuant to the provisions of Wisconsin Statutes, Sections 59.01 and 59.52(6), the Municipality is authorized to: (1) acquire and hold, lease or rent real and personal estate for public uses or purposes, to sell, lease and convey the same, to make such contracts and to do such other acts as are necessary and proper to the exercise of the powers and privileges granted and the performance of the legal duties charged upon it; (2) acquire, lease or rent property, real and personal, for public uses or purposes of any nature, including without limitation, acquisitions for county buildings; (3) direct the clerk to lease, sell or convey or contract to sell or convey any county property, not donated and required to be held for a special purpose, on terms that the Board approves; (4) construct, purchase, acquire, lease, develop, improve, extend, equip, operate and maintain all county buildings, structures and facilities hereinafter in this subsection referred to as “projects,” including, among 2 others, schools, hospitals, homes for the aged or indigent, regional projects and including all property, real and personal, pertinent or necessary for such purposes; (5) finance such projects, including necessary sites, by the issuance of revenue bonds under the Act, and payable solely from the income, revenues and rentals and fees derived from the operation of the project financed from the proceeds of the revenue bonds 3. The County has a vested interest in ensuring the continued operation and success of Northern Lights Services, Inc (“Northern Lights”) for reasons that include, but not limited to the following: a. The County owns the property that is operated by Northern Lights and Northern Lights pays the County rent pursuant to a long-term lease. b. Northern Lights operates the only skilled nursing facility in Bayfield County. c. Northern Lights employs a significant number of residents. 4. Northern Lights has shown a need for a loan in the amount of $500,000 and has shown that based upon its non- profit status and lack of assets, it is unable to obtain a conventional loan without the assistance of the County. The County has reviewed financing options and has found that using $500,000 of its reserve funds to be the best option to the County and its residents. 5. The County Administrator and County Clerk are hereby authorized to execute all documents necessary to provide Northern Lights with a loan in the amount of $500,000.00 effective April 20, 2023 with an interest rate of 2.61% per annum and payable over 60 months. The first payment will be due on September 20, 2023. 6. The 2019 Promissory note has a balance due of $182,460.16 effective April 19, 2023. This note will be retired with this issuance leaving a balance of $317,539.84 payable to Northern Lights. The new $500,000 loan will utilize the same payment schedule of the original loan. Abeles-Allison explained that the resolution would approve a $500k loan to Northern Lights Services. A previous loan in the amount of $500k was made to Northern Lights in 2019 with $182,460.16 remaining on the principal. The new loan would be used to pay off the remaining amount of the original loan and Northern Lights would receive a check for the difference and the terms of the new loan would remain the same as the original loan. Abeles-Allison noted that a correction would need to be made which would list the effective date as “April 20, 2023.” The treasurer’s office has indicated that there are funds available for the loan and a check may be cut the following day depending on the approval of the resolution. Ray suggested postponing the first repayment date to September 20, 2023. The board discussed the repayment schedule and details. Motion by Ray, seconded by Silbert, to adopt Resolution No. 2023-45 Providing $500k Loan to Northern Lights Services, Inc. 2023, with the correction to change the effective date to April 20, 2023 and changing the first payment date to September 20, 2023. Roll Call Vote: Dougherty-yes; Ray-yes; Silbert- yes; Pocernich-yes; Rekemeyer-yes; Rautio-abstain; Strand-yes; Oswald-yes; Sandstrom-yes; Fickbohm-yes; Milanowski-absent; Crandall-yes; Rondeau-yes. Motion carried, 11-0, 1 absent, 1 abstain (Rautio). Oswald asked that the item be put on the next exec or county board agenda to discuss the relationship moving forward. Silbert thanked the board for its efforts and willingness to assist Northern Lights with its financial problem. 3 Adjournment: There being no further business to come before the Bayfield County Board of Supervisors, Chairman Pocernich adjourned the meeting at 6:17 p.m. Respectfully submitted, LYNN M. DIVINE Bayfield County Clerk LMD/pat