July 20, 2019

School district buys nursing home property - Daily Leader Extra : Top Stories

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School district buys nursing home property

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Posted: Friday, July 12, 2019 2:11 pm

The Madison public school system has moved to become the new owner of the property where the Golden Living nursing home -- and later Madison Care and Rehabilitation -- once operated.

The Madison School Board on Thursday approved a real-estate purchase agreement with Education Heights LLC to purchase a city block of land where the senior-care center once operated.

During 2018, Skyline Healthcare of Wood Ridge, N.J., had financial difficulties in keeping the Madison facility -- and other facilities the company operated in South Dakota -- in operation. Golden Living of Plano, Texas, the owner of the facilities, decided to place the care centers in receivership and close some of them.

Early in the receivership process, information circulated that Golden Living was interested in selling the Madison property.

On Thursday, the school board members approved paying Education Heights LLC $150,000 as a downpayment for Block 2 of Walker's 1st Addition, where the closed senior-care facility once operated. That block of land is located just south of the Madison Middle/High School complex. The Madison Central School District will pay Education Heights an additional lump sum of $600,000 as full payment for the land. The total purchase price for the property is $750,000.

In filing information kept with the South Dakota Secretary of State's Office, Brian Kern of Madison is listed as the organizer of Education Heights LLC. Also in the documents, Gewei Cheng of Madison is listed as the registered agent for the limited-liability company.

The school district plans to take possession of the property in April 2020.

The board members voted to approve the purchase agreement as an item on their agenda for the last school board meeting for the 2018-19 school year. Board members Tom Farrell, Steve Nelson, Lori Schultz, Leah Cecil, Camie Sims and Shawn Miller approved the agreement. Board member Rob Honomichl was absent.

During discussion about the purchase agreement, Farrell, the school board president, said that the school district had little room for expansion, saying Madison Central was "...reaching our limit real estate-wise." Farrell called the proposal "...a golden opportunity for future growth."

The Madison School Board also approved a demolition agreement with Education Heights that would have the company remove all of the structures from the property. The school district will pay the limited-liability company $50,000 up front for the demolition, and district officials have agreed to a payment plan to pay for the rest of the demolition expenses. The full cost of demolition on the property is estimated at $150,000.

For the remaining demolition costs, school officials have agreed to pay Education Heights $50,000 per month until all of the expenses are paid.

The school district plans to pay for the land purchase and demolition expenses with capital-outlay funds. School officials said that Madison Central should not need to raise a new bond issue to obtain funding to pay for the real-estate purchase and demolition costs.

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