ORDINANCE NO. BL2014-688

An ordinance approving agreements for the lease and disposition of real property relating to the Bordeaux Long Term Care and J.B. Knowles Home for the Aged facilities, an amendment to the Intergovernmental Agreement between the Metropolitan Nashville Hospital Authority and the Metropolitan Government of Nashville and Davidson County, and determining and declaring in accordance with Section 1.05 of the Metropolitan Charter that the private sector can provide quality long term care services on a more economical basis, which makes such services no longer necessary as a governmental function (Proposal No. 2014M-002PR-001).

WHEREAS, the Metropolitan Nashville Hospital Authority (the “Hospital Authority”), created by Ordinance 99-1577, and Resolutions SR99-1410, and R99-1411 through R99-1413, operates Bordeaux Long Term Care through the Intergovernmental Agreement between the Hospital Authority and the Metropolitan Government of Nashville and Davidson County (the “Metropolitan Government”); and

WHEREAS, pursuant to Substitute Ordinance No. BL2004-304, the operation of the J.B. Knowles Home for the Aged was transferred to the Hospital Authority; and

WHEREAS, the Metropolitan Government currently provides approximately ten million five hundred thousand dollars ($10,500,000) annually in subsidies to the Hospital Authority to offset the annual losses incurred by these facilities; and

WHEREAS, approximately six percent of all long term care facilities in the United States are operated by governmental entities; and

WHEREAS, pursuant to the documents (the “Signature Agreements”) attached as Exhibits A and B and incorporated into this ordinance, Signature Healthcare, LLC proposes to lease and operate the Bordeaux facility for two years, develop a new nursing home facility in north Nashville, and operate for the long term both the new facility and a facility on the Bordeaux campus; and

WHEREAS, pursuant to the document (the “Vision Agreement”) attached as Exhibit C and incorporated into this ordinance, Vision Real Estate Investment Corp. proposes to purchase the approximately 76 acre Bordeaux Campus, convert the Bordeaux facility to affordable senior housing, and construct cottage-style homes for seniors; and

WHEREAS, pursuant to the document (the “Autumn Agreement”) attached as Exhibit D and incorporated into this ordinance, Autumn Assisted Living Partners, Inc. proposes to lease and operate the Knowles facility for two years, after which it will purchase the facility; and

WHEREAS, the Metropolitan Government and the Hospital Authority propose to modify the Intergovernmental Agreement between them pursuant to the terms of the document attached as Exhibit E and incorporated into this ordinance; and

WHEREAS, the changing landscape of the healthcare industry has resulted in an increase in the availability of long term care services in the private sector, an increase in funding sources for long term care services, and significant challenges for governmental entities to provide the highest quality services; and

WHEREAS, the nursing home industry is moving away from large, hospital-style facilities and is moving towards smaller, residential-style facilities, often located strategically to offer a continuum of care to its residents; and

WHEREAS, no other large county or municipal government in Tennessee still owns or operates nursing home facilities; and

WHEREAS, it is in the best interest of the citizens of Nashville and Davidson County to approve the agreements and amendments described herein.

NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. The Signature Agreements (Exhibit A and B) are hereby approved, and the Metropolitan Mayor or his designee is authorized to execute the same.

Section 2. The Vision Agreement (Exhibit C) is hereby approved, and the Metropolitan Mayor or his designee is authorized to execute the same.

Section 3. The Autumn Agreement (Exhibit D) is hereby approved, and the Metropolitan Mayor or his designee is authorized to execute the same.

Section 4. The Intergovernmental Agreement Amendment (Exhibit E) is hereby approved and the Metropolitan Mayor or his designee is authorized to execute the same.

Section 5. Due to the circumstances described above, the provision of long term care services by the Metropolitan Government is hereby determined and declared to be obsolete and unnecessary in accordance with Section 1.05 of the Metropolitan Charter.

Section 6. All ordinances and resolutions, or parts thereof, in conflict with the provisions of this ordinance are, to the extent of such conflict, hereby repealed, including, but not limited to, Substitute Ordinance No. BL2004-304 and SR99-1413 to the extent they approved lease agreements regarding the Knowles and Bordeaux properties.

Section 7. Amendments to any of the agreements approved by this ordinance may be approved by resolution of the Metropolitan Council receiving twenty-one affirmative votes.

Section 8. The Metropolitan Mayor or his designee is authorized to execute such documents as are necessary to effectuate the Property conveyances contemplated herein.

Section 9. This ordinance shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Jerry Maynard, Ronnie Steine, lma

If you would like a copy of the attachment to any ordinance or resolution, please email your request to the Metro Clerk's Office at metro.clerk@nashville.gov

Amendment No. 1
To
Ordinance No. BL2014-688

Madam President:
I move to amend Ordinance No. BL2014-688 by replacing the exhibits attached to the ordinance with the exhibits attached to this amendment.

Sponsored by: Jerry Maynard, Ronnie Steine, Lonnell Matthews

If you would like a copy of the attachment to any ordinance or resolution, please email your request to the Metro Clerk's Office at metro.clerk@nashville.gov

LEGISLATIVE HISTORY
Introduced:	February 18, 2014
Passed First Reading:	February 18, 2014
Referred to:	Planning Commission Budget & Finance Committee Health, Hospitals and Social Services Committee Planning & Zoning Committee
Amended:	March 4, 2014
Passed Second Reading:	March 4, 2014 - Roll Call Vote
Passed Third Reading:	March 18, 2014 - Roll Call Vote
Approved:	March 19, 2014
By:

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