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Philip Y. Kao PhD thesis - Research@StAndrews:FullText

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Tacoma Pastures enlisted the services of a boutique investment bank located in<br />

Orlando, Florida to underwrite $19.7 million worth of nonrated bonds. These bonds<br />

were used to advance refund an existing bond issue in order to generate cash flow<br />

earnings. These tax exempt bonds were sold to retail and institutional investors with<br />

yields of 5.25% to 5.32% and maturities ranging from 2026–2037, extending its<br />

previous 2019 senior bond maturity.<br />

* * *<br />

On July 14, 1983 the executive director of Tacoma Pastures announced plans for making<br />

extensive alterations to the third floor. One corridor on that floor was already<br />

designated and equipped for supervisory care. The new plan would be to make the<br />

entire floor entirely devoted to ‘personal care’ apartments. The renovations would also<br />

entail knocking down some pre-existing apartments in order to build a spacious dining<br />

room, an enlarged lounge and lobby as well as a closed centre for nurses and caregivers.<br />

These changes were motivated by Tacoma Pastures’s opinion that more of the residents<br />

throughout the main building required additional supervision and assistance, but not<br />

enough to need the services provided by the therapy and health centre. By consolidating<br />

these residents together, Tacoma Pastures could serve these residents in a more cost<br />

effective way. A second reason for the change was that Tacoma Pastures was losing<br />

prospective residents who could not live independently; there was no space to<br />

accommodate them with only one wing of the third floor dedicated to supervisory care<br />

already full.<br />

In a Tacoma Pastures newsletter dated October 1983, the president of the residents’<br />

association introduced personal care apartments as a new type of residency. The<br />

president of the residents’ association wrote that: “Personal care is indicative of the<br />

phased living concept our consultants advocate, that is where all levels of care are<br />

provided on a single campus, so residents may shift easily form one level of care to<br />

another as needed.” The newsletter went on to explain that: “The Tacoma Pastures<br />

campus will include the following phases of care: 1) Independent living apartments on<br />

happened to be founded in 1978, operates over 570 senior retirement communities in<br />

the country. They have 35,000 staff and 55,000 residents.<br />

40

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