The Press Newspaper
An assisted living facility for seniors is being planned on a 13-acre site at the southeast corner of Seaman Road and South Coy Road in Oregon.
AlcoreSenior, LLC, the developer of the project, located in Columbus, proposes to develop, own and operate, though an affiliate, a campus for seniors that will include 10-20 independent living units located either in ranch style bungalows or a multi-family building, and a 60-80 unit licensed assisted living/memory care center of approximately 45,000 square feet.
The final unit mix and facility set-up will be determined upon completion of a market study. The assisted living/memory care building will be a combination of studio and one bedroom units along with dining rooms, living rooms, activities areas, in-house beauty shop and other common amenities for resident and community use.
The facility will provide assistance with activities of daily living - from meals, bathing, dressing, ambulating, housekeeping, toileting, and transportation.
The facility will target seniors who are approximately 81 years old and over, and the average length of stay will be three years.
The project’s representatives went before council’s committee of the whole on Monday seeking to have the costs financed from proceeds of up to $15 million in mortgage revenue bonds issued by the city.
Council agreed to vote on the proposed ordinance at its meeting the following Monday.
“The city has issued bonds of a similar nature for other health care and senior activities in the past,” said Administrator Mike Beazley. “I think the most recent one was for Luther Homes. It’s worth noting as we discuss the project that tonight is a very preliminary first step. The state and federal legislative authorities in their wisdom have made it possible for folks doing these sorts of developments to access a lower interest rate with the approval of their local municipal or county authority. In these cases, the city does not take on risk, but does play a role. At this step, it’s just simply a resolution of a statement of intent so the developer can understand the interest rate that’s available to them.”
The developer, he added, will need a special use exemption or zoning change on the property if the project moves forward.
“We feel it’s a good general land use of that area. It’s something that council will have an opportunity as part of the zoning process to weigh in on. We do feel, and it’s been raised by members of this body, that there’s a niche in senior housing that we need to fill,” said Beazley.
Taxable and tax-exempt fixed rate bonds will be issued and secured by revenues of the project, a mortgage on the project and a debt service reserve fund. Proceeds from the tax-exempt bonds will be used primarily for project planning and construction expenses, capitalized interest during the construction period and working capital. Proceeds from the taxable bonds will be used primarily for project management expenses, working capital and costs of issuance related to the bonds.
Diana Silveira, of the law firm of Peck, Shaffer & Williams, LLP, the developer’s bond counsel, said the city will be merely a conduit issuer that will loan the proceeds to the borrower, who will use it to construct and operate the project.
“The bonds will be secured solely by the revenues from the project and they do not constitute debt or general obligation of the city,” she said. “Neither the taxing power of the city nor any tax payer dollars will be used or pledged to pay back the bonds. The borrower will be solely responsible for repayment of those bonds.”
The project will employ about 30 full-time staff with an annual payroll in the range of $750,000. AlcoreSenior, LLC was founded in 2011 by Benjamin J. Byers.
There is a need to provide assisted living to seniors in the area, Byers told council.
“They may not be able to stay at home any longer, but don’t need to be institutionalized in nursing homes. That’s the bridge we’re trying to gap,” said Byers.
“When we look at the demographics of our community, we see a higher percentage of people filling that,” said Councilman James Seaman.
“This seems to probably be the best use for this particular parcel that we might be able to experience,” said Mayor Mike Seferian.
“I’m in favor of this,” said Councilman Mike Sheehy. “I think it’s something that’s needed. It’s a good fit for Oregon.”
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