The heat - and the rent - is being turned up on Maple Valley Nursing Home operator John Kasben.

Acting at its regular monthly meeting Tuesday evening, the Leelanau County Board of Commissioners raised the rent on the nursing home building and land by 50 percent, from $3,250 to $5,000 per month.

Kasben’s previous lease on the county-owned property expired on Monday. The earlier lease agreement left it to county taxpayers to cover expenses for any major repairs to the building.
Under the new lease offer, Kasben must cover any repair bills.

Also on Monday, Kasben offered through his attorney to purchase the Maple Valley Nursing Home property from the county. A committee of county commissioners will consider the offer and make a recommendation next month to the full board.

However, the initial reaction of commissioners to Kasben’s written offer at Tuesday evening’s meeting did not appear positive.

The county government has been trying to “get out of the nursing home business” for several years, according to county officials. Many years ago, Leelanau County like many counties in the state, operated a government-owned nursing home. When such operations were turned over to private enterprise, Leelanau County retained ownership of the land and the building housing the Maple Valley Nursing Home and leased the property to the private nursing home operator.

County officials have long complained that Kasben’s business was being “subsidized” by low rents from the county. The county board’s Maple Valley Nursing Home subcommittee last year recommended that the building and land be put up for sale – with the idea that Kasben might be the most likely buyer.

But no serious offers have been made on the property over the past six months – except for Kasben’s July 16 offer.

Kasben is offering to purchase the 25-bed facility on its nine-acre parcel for $350,000 cash. He is also asking for an eight-year option to purchase an adjoining four-acre parcel for $50,000.

Alternatively, Kasben is offering to purchase the property under a 27-year land contract with the county for a monthly payment not to exceed $3,500 per month. The option to purchase the additional four acres would remain the same. Kasben’s attorney also suggested that the county’s Economic Development Corporation could provide financing.

“Mr. and Mrs. Kasben believe this is a realistic proposal that would provide the county with a fair price for the property, and also allow them to continue in business with a realistic payment schedule for the debt they would incur,” wrote attorney John N. Seaman Jr. of Traverse City.

Contacted Wednesday morning by a reporter, John Kasben declined to provide any additional comment.

County Board chairman and District No. 6 commissioner Robert Hawley said he believed the Maple Valley Nursing Home property was worth considerably more than Kasben was offering.

District No. 7 commissioner Melinda Lautner, who chairs the Maple Valley Nursing Home subcommittee, indicated she agreed with Hawley, but added that her committee needed time to evaluate Kasben’s offer, having just received it on Tuesday.

District No. 5 commissioner David “Chauncey” Shiflett said he believed the higher rent being charged for the property would “level the playing field” in the nursing home business in Leelanau County. Shiflett noted that owners of other nursing homes and assisted living facilities in Leelanau County might be interested in gaining the state license for the 25 nursing home beds now controlled by Kasben.

Speaking at a July 11 meeting of the Maple Valley Nursing Home subcommittee, District No. 4 commissioner Mary Tonneberger said people currently residing in the nursing home have a number of options in the general vicinity.

Even if Maple Valley closes, Tonneberger said according to minutes, “no one will be out on the street.”