writing and editing
"Kokoro Assisted Living Saved By Redevelopment Agency"
Published in the Nichi Bei Times, August 3-9, 2006.
"I'm so happy!" exclaimed 92-year-old Kokoro Assisted Living resident Sydney Nakamura.
Nakamura and several dozen other Kokoro supporters were at City Hall on Aug. 1 to hear San Francisco Redevelopment Agency (SFRA) commissioners unanimously approve a request to provide Kokoro with $5 million in additional funds.
The funds, in the form of a purchase of land on which Kokoro sits — at the corner of Bush and Laguna streets in Japantown — will allow the facility to remain within the Japanese American community. A closely-related item, to lease the property back to the Kokoro for one dollar per year, was also unanimously approved.
Prior to their vote, agency commissioners were presented with a plan specifying how changes would be made to finally ensure Kokoro's financial stability.
The facility, a vision and creation of the Japanese American Religious Federation Assisted Living Facility, Inc. (JALFI), faced financial problems soon after its fall 2003 opening.
JALFI officials blamed outside consultants NCB Development Corporation, an affiliate of National Cooperative Bank, which funded the current $7 million mortgage. The financial package developed by NCB Development, said JALFI, created a disparity between the facility's actual income and its mortgage payment amounts.
In January, Japanese American community members — who had contributed $2.8 million to the project — were shocked when JALFI officials suddenly announced that they had decided to enter into exclusive negotiations to transfer Kokoro's ownership to San Francisco-based senior health services organization On Lok, Inc.
After a series of meetings with outraged community members, JALFI announced in March that it would instead pursue options to keep Kokoro in the Japanese American community.
Working groups were formed to create recommendations, which were shared with the community in June and presented to the SFRA commissioners on Tuesday. The recommendations, which can now be enacted, including paying down the current $7 million NCB mortgage with the $5 million in SFRA funds, and a new $2.5 million loan from Union Bank of California.
This new financial structure will reduce mortgage payments from the current $40,000 per month to between $12,000 to $15,000. A closing is planned for around the end of August, or shortly thereafter.
Another major change will be a board restructure and a new corporation name.
"Very graciously, (the Japanese American Religious Federation, or JARF) has agreed to give up the majority control of the ownership entity," said SFRA staffer David Sobel, who detailed a reduction of the number of JARF board seats.
Current Executive Director Stephanie Fujii noted that the new organization would be called Kokoro Assisted Living Inc., and that she is "planning on stepping down as executive director to join the board."
Community activist Jeff Mori acknowledged the Agency's previous $5.6 million in contributions.
"I know it's a lot to ask for you to come to the well this time," said Mori, but "I'm confident that with the commitment of many new community members to the project that we will be before you for the last time today."
Rosie McCormick said her "92-year-old father, who previously lived in his own home for over 60 years, entered Kokoro almost three years ago on a 30-day trial period. He never looked back. He considers Kokoro his home, as do the other residents."
McCormick's sentiments were confirmed by Kokoro Resident's Council Chairman Ronald Miao.
"I've been living at Kokoro continuously since 2003 and I want to say up front that I could not be more pleased with my living situation," said Miao, giving recognition to the "exceptionally talented and dedicated" administrators and "excellent" staff.
After testimony, SFRA Commissioner Ramon Romero quickly moved to adopt the action, which was seconded by Commissioner Darshan Singh, who called Kokoro "a very wonderful facility."
Before extending her approval, Commissioner Francee Covington first requested a short explanation of the original problem and how the situation would be different in the future. She also requested copies of articles regarding Kokoro published in the Japanese American press, as well as a clarification of what the Agency's involvement with the project will be in the future.
Sobel emphasized that "a reconstituted board is going to make sure that not only are we fixing the financial bills, but we're putting the stewardship of this resource into hands which will be able to carry it into the future without having to worry that the agency will need to bail them out again."
He also noted that the ground lease will have performance milestones related to "expectations and contractural obligations as to when the new bylaws have to be submitted to the state for approval and when the new board will be in place."
Before calling an official vote, SFRA President Richard Peterson called the project "a very good example of people working together and being creative."
Leaving City Hall, Nakamura and fellow Kokoro resident Nancie Oyama said excitedly about the facility, "We love it. We are happy."
Said their companion Christal Rickson as they walked away together, "Maybe Kokoro will be around for me."