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HomeMy WebLinkAbout2.c. Senior Housing Update4ROSEMOUNTEXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: October 13, 2010 BACKGROUND Some time ago staff discussed with'the Council the idea of bringing senior housing to the Steeple Center site. Provision of senior housing would require removal of the school building to provide room on site. There was also discussion about incorporating a senior center into the project. DISCUSSION Staff has contacted several companies involved in the provision of senior housing. hhave spoken with three providers: Ecumen, Augustana and Walker Methodist; and two commercial companies that have starting getting into the housing market: United Properties and Ryan Construction. I have calls into two more providers. There have been previous conversations with Brad Friesz /Daniel Farr and Dakota County CDA. There have also been recent conversations with Wally Johnson representing Stonebiidge. There are a variety of options for senior housing. It -is my understanding that in many cases the building would not significantly change; it is the provision of services that would be altered depending upon the needs of the target client. The only exception is memory care units. In that instance the layout is different than traditional senior housing apartments. The feedback I received is the question as to whether there is a market in Rosemount for senior housing, either independent, assisted or memory care. All recommende&getting a market analysis of Rosemount (and the amount of units in our service area). In talking with Maxfield Research they estimated $3200 for a market analysis; it would not be a full market analysis but I was told it would suffice to begin discussions with a provider. In the past there have been several market studies that have touched on aspects of the senior housing market but not entirely. In 2005 the CDA commissioned a study entitled Comprehensive Housing Needs Assessment for Dakota County. The Study did discuss market rate, affordable, and subsidized senior housing. However, there was no discussion about assisted (meaning medical /living assistance) living for seniors. Additionally, the study was'conducted before the economy turned and AGENDA SECTION: AGENDA ITEM: Senior Housing Update Discussion PREPARED BY: Kim Lindquist, Community Development AGENDA NO. Director ATTACHMENTS: None. APPROVED BY: RECOMMENDED ACTION: Discussion Item BACKGROUND Some time ago staff discussed with'the Council the idea of bringing senior housing to the Steeple Center site. Provision of senior housing would require removal of the school building to provide room on site. There was also discussion about incorporating a senior center into the project. DISCUSSION Staff has contacted several companies involved in the provision of senior housing. hhave spoken with three providers: Ecumen, Augustana and Walker Methodist; and two commercial companies that have starting getting into the housing market: United Properties and Ryan Construction. I have calls into two more providers. There have been previous conversations with Brad Friesz /Daniel Farr and Dakota County CDA. There have also been recent conversations with Wally Johnson representing Stonebiidge. There are a variety of options for senior housing. It -is my understanding that in many cases the building would not significantly change; it is the provision of services that would be altered depending upon the needs of the target client. The only exception is memory care units. In that instance the layout is different than traditional senior housing apartments. The feedback I received is the question as to whether there is a market in Rosemount for senior housing, either independent, assisted or memory care. All recommende&getting a market analysis of Rosemount (and the amount of units in our service area). In talking with Maxfield Research they estimated $3200 for a market analysis; it would not be a full market analysis but I was told it would suffice to begin discussions with a provider. In the past there have been several market studies that have touched on aspects of the senior housing market but not entirely. In 2005 the CDA commissioned a study entitled Comprehensive Housing Needs Assessment for Dakota County. The Study did discuss market rate, affordable, and subsidized senior housing. However, there was no discussion about assisted (meaning medical /living assistance) living for seniors. Additionally, the study was'conducted before the economy turned and I would most likely not reflect an accurate picture of senior housing demand. Anecdotally, developers have indicated that part of the problem with senior housing is not the new housing but the ability of existing senior homeowners to sell their existing single family home, which would allow them to commit to a different senior housing alternative. If the Council was interested in partnering with the CDA a market analysis shouldn't be needed either. They have waiting lists for their subsidized senior housing projects including Cameo Place. At this time`the CDA does not provide any assisted living services in their projects although they are partnering with Presbyterian Homes on a project in Burnsville. According to Kati Gill of the CDA, it is a much larger project than Rosemount's with SO independent units and 60 assisted units. They are just starting the City approval process and there are many details left to be worked out with the two provider's. It is unclear if that partnership could be replicated on the City site. RECOMMENDATION Staff is recommending commissioning a market analysis for provision of senior housing in Rosemount to assess the market for various senior housing alternatives in the community. The cost estimate is $3200 from Maxfield Research. There is funding available in the Port Authority budget for a study since there hasn't been significant legal or engineering expenses this year. ;V a b