Tax-exempt bond sales could end Inn on the Pond construction delay

Artist’s rendering of Menorah Manor’s Inn on the Pond assisted living residence to be built on the former Golda Meir/Kent Jewish Center property in Clearwater. After two years of trying, Menorah Manor Senior Living has secured financing to build its $24 million Inn on the Pond — if community members provide equity by purchasing $3 million of subordinated tax-exempt bonds. The bonds must be sold by September 2010.

“The 6.5 percent tax exemption is the obvious benefit to draw businesses and private bond purchasers,” said Executive Director/CEO Marshall Seiden, “and it will give us a way to get this project off hold, because the need is still there.”

In retrospect, Seiden added, “The days when banks would accept pledges (as collateral/ equity) are long gone. The banks want cash now.”

The $3 million in tax-exempt bonds is being sold in $100,000 increments, but not necessarily one purchaser per increment.

“We already have one business interested and inquiries from individuals, plus groups of people (or several members of one family) who are interested in joining together to purchase bonds,” he said.

Despite the fact that Menorah Manor is not a mammoth hospital or nursing home with huge endowments, Seiden said the project is “highly regarded” in the financial world.

But, Seiden noted, the $3 million in equity does not have to all come from bond sales.

“If there’s an angel out there who wants to make a large donation, the $3 million can be the result of a combination of bond sale revenue and gifts. The same goes for any donor.”

The Inn on the Pond will be located on the Campus for Jewish Life in Clearwater — the former Golda Meir/Kent Jewish Center Campus in Clearwater, and will be the Manor’s first venture outside its St. Petersburg base.

According to promotional material, it is intended to “offer assisted living with an independent spirit, with a commitment to dignity and Jewish traditions, and an active lifestyle. The Inn on the Pond will feature premium amenities, elegant dining areas and abundant recreational, wellness, intellectual and social opportunities. As a Menorah Manor community, it will have the benefit of the support, quality care and peace of mind provided by Menorah Manor’s broad range of senior care knowledge.”

Saul Schechter, project chair, said that the finance committee, chaired by Craig Sher and Jim Soble, has worked tirelessly to find the best possible terms for financing the project. The tentative closing on the financing will be in September, with groundbreaking in October. Construction will take 12-14 months.

As a “shovel ready” project; necessary approvals have been obtained, the design is complete and there are 80 applications. The Building Committee, chaired by Saul Rachelson, has worked closely with Alan Bomstein, president and CEO of Creative Contractors, the design/ builder, as well as Bessolo Design Group, the architects and engineers.

One bright side to the delay, Seiden said, is that construction costs have not gone up. In fact, some costs have actually dropped. “Alan Bomstein has been watching that closely for us.”

For information on purchasing the Menorah Manor bonds, contact Marshall Seiden, chief executive officer of Menorah Manor, (727) 345-2775.

For information on becoming a resident, call (727) 302-3818.