HomeMy WebLinkAboutEDA - September 18, 2012C T Y O F
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
September 18, 2012
6:00 p.m.
Conference Rooms A & B
1. Call to Order — 6:00 p.m.
2. Approval of Minutes (August 15, 2012 Special; August 21, 2012 Regular)
3. Presentation — Cherrywood Advanced Living — Marshall Weems
4. Approve Cancellation, Abolishment and Revocation of Declaration of Easements, Covenants
Conditions and Restrictions — Parkside at Andover Station Village Homes
5. EDA Activity - Project Status Update
6. Closed Session: Property Negotiations PID #33- 32 -24 -13 -0046
7. Discuss /Authorize Pursuing a Purchase Agreement PID #33- 32 -24 -13 -0046
8. Other Business
9. Adjournment
t C I T Y MA
'
LNDOVE
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
TO: Economic Development Authorit
CC: Jim Dickinson, City Administrator
FROM: Michelle Harmer, Deputy City Clerk
SUBJECT: Approval of Minutes
DATE: September 18, 2012
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
August 15, 2012 Special
August 21, 2012 Regular
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
The EDA is requested to approve the above minutes.
Respectfully submitted,
Michelle Hartner
Deputy City Clerk
Attach: Minutes
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
ANDOVER ECONOMIC DEVELOPMENT A UTHORITY SPECIAL MEETING
A UGUST 1 S, 2012 - MINUTES
A special meeting of the Andover Economic 1
President Mike Gamache, August 15, 2012, 6:30
Boulevard NW, Andover, Minnesota.
Present:
Absent:
Also present:
rcr�rrr_rs�n4119 , ei
Mr. Carlberg introduced
PowerPoint presentation
for the City, Once final-
checking the acreage arr
Staff will also prepare a
ADJOURNMENT
Motion by Bukkila, Sec
adjourned at 8:07 p.m.-,
Respectfully submitted,
ty was called to order by
City Hall, 1685 Crosstown
Tony Howard, Mike Knight and
, David L.
'the McComb Group. Mr. McComb presented a
the Andover Retail Market Analysis his firm prepared
16b on input received at the meeting and staff
land area the study will be placed on the City's website.
to adjourn. Motion carried unanimously. The meeting
David L. Carlberg, Community Development Director
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING
AUGUST 21, 2012 - MINUTES
A meeting of the Andover Economic Development Aul
Gamache, August 21, 2012, 6:00 p.m., at the Andover
Andover, Minnesota.
Present: Commissioners
Mike Knight, J
Absent: None
Also present: Community De,
Public
APPROVAL OF
August 8, 2012, Regular Meeting: Correct as
August 8,
Motion by K
unanimously
called to order by President Mike
1685 Crosstown Boulevard NW,
Crude, Joyce Twistol a
.)meet Direcfor, David
Jim Dickinson
), Tony Howard,
Ebert Nowak
Dave Berkowitz
of the Minutes as presented. Motion carried
by, approval of the Minutes as presented. Motion carried
EDA ACTIVITY— PROJECT STATUS UPDATE
Mr. Carlberg updated on the following:
2012 Special EDA Events — August 22nd is the last scheduled concert event for 2012. The
Andover High School Band will be performing at the Andover Station pergola.
Andover Station Area Medians — Staff is requesting a quote from Prairie Restorations to spray
the weeds. Staff is also checking on warranty coverage for the plugs that were planted last year.
Andover Station North — Two commercial real estate brokers are watching the Wal -mart
situation and have been in contact with staff.
0
Andover Economic Development Authority Meeting
Minutes —August 21, 2012
Page 2
Parkside at Andover Station — Hakanson Anderson is preparing the preliminary plat. The
preliminary plat will be on the September 11d' Planning and Zoning Commission meeting and
September 18th City Council meeting.
Retail Market Analysis — Mr. McComb presented the results of the Retail Market Analysis on
August 15, 2012. Only one business owner showed up to the presentation, this was
disappointing. Mr. Carlberg is putting together a summary of the study results. The results and
summary will be placed on the City website.
10 Monument/Entrance Signs — The electronic reader board on Crosstown/Bunker is complete,
11 Connexus will run power to it next week. The Round Lake Boulevard entrance sign is under
12 construction and will be installed when completed. The Bunker Lake Boulevard east sign is
13 scheduled for installation in September /October.
14
15 SELECTION OF VENUE FOR 2013 ANNUAL BUSINESS DEVELOPMENT DAY
16
17 Mr. Carlberg indicated the EDA has set June 19, 2013 date for the event. Staff is looking for the
18 EDA to pick the venue for the event. Staff received four quotes, with Rum River Hills Golf Club
19 coming in with the lowest quote.
20
21 Commissioner Trude indicated she would like staff to market the event for those businesses not
22 interested in golfing but should be encouraged to come to the dinner for networking
23 opportunities.
24
25 The event was discussed.
26
27 The consensus of the EDA is to allow the EDA President and staff to make the final decision for
28 the venue.
29
30 PARKSIDE AT ANDOVER STATIONIA UTHORIZED PROJECT EXPENSES
31
32 Mr. Dickinson indicated the project is moving along per the purchase agreement with Capstone
33 Homes. Staff is looking for the EDA to authorize the necessary project expenses.
34
35 Mr. Berkowitz indicated a feasibility report is not required for the project since the parcels will
36 not be assessed. Bid opening will take place on September 17th, Council approval on September
37 18th and construction will begin on October 15`
38
39 Motion by Trude, Seconded by Knight, authorizing the Executive Director to move forward in
40 procuring bids for the earth work that needs to happen to market the Parkside at Andover Station
41 plat. Motion carried unanimously.
42
43 OTHER BUSINESS
44
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Andover Economic Development Authority Meeting
Minutes — August 21, 2012
Page 3
Mr. Dickinson stated after talking to the City's fiscal advisors, Elhers and Associates, the EDA may
have the opportunity to refinance the Community Center and save some money.
Mr. Dickinson explained the bond process. He indicated with a taxable bond sale at a 3% state
minimum the City could save $400,000 to $500,000.
Motion by Trude, Seconded by Bukkila authorizing the Executive Director to send out RFPs for
underwriters to assist with negotiating. Motion carried unanimously.
ADJOURNMENT
Motion by Bukkila, Seconded by Howard to adjourn. Motion carried unanimously. The meeting
adjourned at 6:34 p.m.
Respectfully submitted,
Michelle Hartner, Recording Secretary
f
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: President and Commissioners
Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Development Director
SUBJECT: Presentation- Cherrywood Advanced Living — Marshall Weems
DATE: September 18, 2012
INTRODUCTION
The EDA is requested to receive a presentation from Marshall Weems, Chief
Development Officer of Cherrywood Advanced Living on a potential 20 unit senior
housing project.
�Respectfully Qsub fitted,
David L. Carlberg
• IT
O
1685 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI. ANDOVER. MN. US
TO: President and Commissioners
Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Deve ment Director
SUBJECT: Approve Cancellation, Abolishment and Revocation of Declaration of
Easements, Covenants, Conditions and Restrictions — Parkside at Andover
Station Village Homes
DATE: September 18, 2012
INTRODUCTION
The EDA is requested to approve the attached Cancellation, Abolishment and Revocation
of Declaration of Easements, Covenants, Conditions and Restrictions — Parkside at
Andover Station Village Homes.
DISCUSSION
In preparation for the development of the Parkside at Andover Station Third Addition,
staff has discovered that the property is encumbered by Easements, Covenants,
Conditions and Restrictions that were recorded on February 5, 2007. These ECCR's are
no longer needed with the proposed revisions to the plat. There will no longer be a need
for an association and a board governing the association as there are no common
elements to be maintained. In fact, an association does not currently exist to enforce the
ECCRs.
ACTION REQUESTED
Approve the attached Cancellation, Abolishment and Revocation of Declaration of
Easements, Covenants, Conditions and Restrictions — Parkside at Andover Station
Village Homes.
Respectfully submitted,
David L. Carlberg
(Above Space Reserved for Recording Data)
CANCELLATION, ABOLISHMENT AND REVOCATION OF
DECLARATION OF EASEMENTS, COVENANTS,
CONDITIONS AND RESTRICTIONS
PARKSIDE AT ANDOVER STATION VILLAGE HOMES
This Cancellation, Abolishment and Revocation of Declaration of Easements, Covenants,
Conditions and Restrictions is made as of the day of 2012, by the Andover
Economic Development Authority, a body corporate and politic (the "Andover EDA ") and
Capstone Homes, Inc., a Minnesota corporation.
WHEREAS, on July 16, 2007, Bruggeman Homes, Inc., a Minnesota corporation (the
"Declarant "), caused to be recorded in the Office of the Registrar of Titles in Anoka County,
Minnesota as Document No. 492192.001, a Declaration of Easements, Covenants, Conditions
and Restrictions (the "Declaration ") for the purpose of establishing Parkside at Andover Station
Village Homes as a single - family residential housing community;
WHEREAS, at the time of filing the Declaration, the Declarant was the owner of certain
real property located in Anoka County, Minnesota, legally described as Lots 1 through 7,
inclusive, Block 1, Parkside at Andover Station 2nd Addition, Anoka County, Minnesota, with
the desire to submit said real property and all improvements thereon to the terms of the
Declaration;
WHEREAS, the Declarant also created Parkside at Andover Station Village Homes
Homeowners Association, Inc. (the "Association "), a nonprofit corporation created pursuant to
Chapter 317A of the laws of the State of Minnesota, which was filed with the Minnesota
Secretary of State's Office on January 9, 2007 with file number 2172950 -2;
WHEREAS, The Andover EDA is currently the fee owner of Lots 1 through 3, Block 1,
Parkside at Andover Station 2nd Addition, Anoka County, Minnesota upon which dwellings are
intended to be located;
WHEREAS, Capstone Homes, Inc. is currently the fee owner of Lots 4 and 5, Block 1,
Parkside at Andover Station 2nd Addition, Anoka County, Minnesota upon which dwellings are
intended to be located;
WHEREAS, by reason of their ownership . of the aforementioned real property, and
pursuant to the Declaration, the Andover EDA and Capstone Homes, Inc. are collectively
allocated at least sixty -seven percent (67 %) of the total votes of the Association;
WHEREAS, pursuant to Section 13.1 of the Declaration, the Declaration may be
amended by the approval of lot owners possessing at least sixty -seven percent (67 %) of the total
votes of the Association and upon the consent of Declarant until such time as Declarant no
longer owns any lots subject to the Declaration available for initial sale pursuant to Section 14.8
of the Declaration;
WHEREAS, Declarant no longer owns any lots subject to the Declaration available for
initial sale and, therefore, no consent of Declarant is necessary for any amendments to the
Declaration;
WHEREAS, the Andover EDA and Capstone Homes, Inc., as holders of at least sixty -
seven percent (67 %) of the total votes of the Association, now desire to cancel, abolish and
revoke the Declaration; and
WHEREAS, following the cancellation, abolishment and revocation of the Declaration,
the Property shall be released from the easements, covenants, conditions and restrictions
contained in the Declaration.
THEREFORE, in consideration of the foregoing, the Andover Economic Development
Authority and Capstone Homes, Inc., as holders of at least sixty -seven percent (67 %) of the total
votes of the Association, state that the Declaration of Easements, Covenants, Conditions and
Restrictions, recorded in the Office of the Registrar of Titles in Anoka County, Minnesota as
Document No. 492192.001, is hereby cancelled, abolished and revoked, effective as of the date
set forth above.
IN WITNESS WHEREOF, the undersigned have executed this instrument, effective as
of the date first written above.
ANDOVER ECONOMIC
DEVELOPMENT AUTHORITY
By:
Printed Name: James Dickinson
Title: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of
2012, by James Dickinson, the Executive Director of the Andover Economic Development
Authority, a body corporate and politic, on behalf of the corporation.
Notary Public
CAPSTONE HOMES, INC.
By:
Printed Name:
Title:
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of 2012,
by , the of Capstone Homes, Inc., a
Minnesota corporation, on behalf of the corporation.
THIS INSTRUMENT WAS DRAFTED BY:
Hawkins & Baumgartner, P.A.
2140 4th Avenue North
Anoka, MN 55303
(763) 427 -8877
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: EDA President and Board
Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Development Director
SUBJECT: EDA Activity - Project Status Report
DATE: September 18, 2012
INTRODUCTION
(D
This memo provides a brief update of all EDA activities. Further details will be provided at the
meeting.
2012 Special EDA Events — "Concert in the Park" — The summer schedule concluded with the
Andover High School Band on August 22"d at 6:30 p.m. An estimated 100 people attended the
event. EDA will need to discuss the effectiveness, goal and future of the program.
2012 Andover Business Development Day — A date of Wednesday, June 19, 2013 has been set.
Andover Station Area Medians — Staff is soliciting a quote from Prairie Restorations to conduct
weed abatement in the islands.
Andover Station North — Available sites are actively being marketed. Interest in the area has
increased with the potential Walmart project.
www.MetroMSP.or and City Website — Staff continues to monitor the EDA's land sales
information on the MetroMSP website sponsored by Anoka County. We have also shown
information on other commercial and industrial lands that are for sale in Andover on both the
www.metromsp.org and in the past on the city planning department's website. Staff has updated the
city's website to include and economic development department to provide prospective businesses
easier access to available commercial /industrial properties as most parties interested look for an
economic development section of a city's website if they are inquiring about available
properties/buildings. Staff has received positive feedback on the information provided and ease of
access to the information.
Potential Restaurants — Staff continues to submit demographic information to potential restaurants
as leads become available. Staff continually reviews various businesses journals looking for
restaurants, retailers and other companies who are expanding their operations. As the EDA is aware,
there continues to be two issues facing Andover in attracting sit down restaurants. The first is not
enough daytime traffic and the second being the lack of square footage of retail space to support a
restaurant.
Redevelopment Sites —Staff is monitoring the area for potential acquisitions as they become
available.
Community Development Block Grant Funds (CDBG) funds were used to install municipal water
service in the area of 1401h Lane NW. Construction is completed except for warranty work.
Parkside at Andover Station — The public hearing for the revised preliminary plat and amendment
to the PUD was held on the September 11th Planning Commission meeting. The City Council will
take action on Septemberl8th. Council will also need to approve the vacating of existing drainage
and utility easements as well as the conservation easement. Staff is also actively pursuing the
development of the remaining multi - family property.
Retail Market Analysis — Jim McComb of the McComb Group presented the findings of the study
on August 15, 2012. Study will be placed on the City's website under the Economic Development
Department once final revisions have been made. Staff has also been asked to prepare a summary of
the study.
Monument/Entrance Signs — Sign installation at Bunker and Crosstown is complete and the sign is
operational. There is a concern over the brightness of the lit cabinet that states "Welcome to
Andover ". The Round lake Boulevard entrance sign is to be installed on September 14th. The plan
is to have the sign on Bunker Lake Blvd. at the Ham Lake border installed in October.
ACTION REQUESTED
Receive a presentation from staff and provide direction.
Respectfully submitted,
David L. Carlberg
PA
k C I T Y 0 F
A
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.AN DOVER. MN.US
TO:
FROM:
SUBJECT:
DATE:
President & Commissioners
Jim Dickinson, Executive Director
Discuss /Authorize Pursuing a Purchase Agreement PID #33- 32 -24 -13 -0046
September 18, 2012
Dependent on discussions during closed session, the EDA may be requested to discuss
authorizing the Executive Director to pursue a purchase agreement for PID #33- 32 -24 -13 -0046.
4
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV
TO: EDA Members
FROM: Jim Dickinson, City Administrator
SUBJECT: Supplemental Agenda Item for September 18, 2012 EDA Meeting
DATE: September 18, 2012
The EDA is requested to receive the following supplemental information.
Item #4. Approve Cancellation, Abolishment and Revocation of Declaration of Easements,
Covenants Conditions and Restrictions — Parkside at Andover Station Village Homes
(Supplemental)
�9kC I T Y 0 F (T),
"~ Y ~'
1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100
FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US
TO: President and Commissioners
Jim Dickinson, Executive Director
FROM: David L. Carlberg, Community Development Director
SUBJECT: Supplemental for Agenda Item #4 - Approve Cancellation, Abolishment
and Revocation of Declaration of Easements, Covenants, Conditions and
Restrictions — Parkside at Andover Station Village Homes
DATE: September 18, 2012
The EDA is requested to receive the following supplemental information.
Item #4 — Revised Cancellation, Abolishment and Revocation of Declaration of
Easements, Covenants, Conditions and Restrictions — Parkside at Andover Station
Village Homes
In the 4th and 5th whereas' the legals and ownership were updated.
Respectfully submitted,
Z-. -( -y
David L. Carlberg
(Above Space Reserved for Recording Data)
CANCELLATION, ABOLISHMENT AND REVOCATION OF
DECLARATION OF EASEMENTS, COVENANTS,
CONDITIONS AND RESTRICTIONS
PARKSIDE AT ANDOVER STATION VILLAGE HOMES
This Cancellation, Abolishment and Revocation of Declaration of Easements, Covenants,
Conditions and Restrictions is made as of the day of , 2012, by the Andover
Economic Development Authority, a body corporate and politic (the "Andover EDA ") and
Capstone Homes, Inc., a Minnesota corporation.
WHEREAS, on July 16, 2007, Bruggeman Homes, Inc., a Minnesota corporation (the
"Declarant "), caused to be recorded in the Office of the Registrar of Titles in Anoka County,
Minnesota as Document No. 492192.001, a Declaration of Easements, Covenants, Conditions
and Restrictions (the "Declaration ") for the purpose of establishing Parkside at. Andover Station
Village Homes as a single - family residential housing community;
WHEREAS, at the time of filing the Declaration, the Declarant was the owner of certain
real property located in Anoka County, Minnesota, legally described as Lots 1 through 7,
inclusive, Block 1, Parkside at Andover Station 2 Addition, Anoka County, Minnesota, with
the desire to submit said real property and all improvements thereon to the terms of the
Declaration;
WHEREAS, the Declarant also created Parkside at Andover Station Village Homes
Homeowners Association, Inc. (the "Association "), a nonprofit corporation created pursuant to
Chapter 317A of the laws of the State of Minnesota, which was filed with the Minnesota
Secretary of State's Office on January 9, 2007 with file number 2172950 -2;
WHEREAS, The Andover EDA is currently the fee owner of the following legally
described real property upon which dwellings are intended to be located:
Lots 1 and 2 and that part of Lot 3, lying Westerly of the East 13.13 feet thereof,
Block 1, Parkside at Andover Station 2 nd Addition, Anoka County, Minnesota.
WHEREAS, Capstone Homes, Inc. is currently the fee owner of the following legally
described real property upon which dwellings are intended to be located:
That part of Lot 4, Block 1, Parkside at Andover Station 2nd Addition, lying
Westerly of the Easterly 6.34 feet thereof. Together with the Easterly 13.13 feet
of Lot 3, Block 1, Parkside at Andover Station 2nd Addition, Anoka County,
Minnesota.
I
Lot 5, together with the Easterly 6.34 feet of Lot 4, Block 1, Parkside at Andover
Station 2nd Addition, Anoka County, Minnesota.
WHEREAS, by reason of their ownership of the aforementioned real property, and
pursuant to the Declaration, the Andover EDA and Capstone Homes, Inc. are collectively
allocated at least sixty -seven percent (67 %) of the total votes of the Association;
WHEREAS, pursuant to Section 13.1 of the Declaration, the Declaration may be
amended by the approval of lot owners possessing at least sixty -seven percent (67 %) of the total
votes of the Association and upon the consent of Declarant until such time as Declarant no
longer owns any lots subject to the Declaration available for initial sale pursuant to Section 14.8
of the Declaration;
WHEREAS, Declarant no longer owns any lots subject to the Declaration available for
initial sale and, therefore, no consent of Declarant is necessary for any amendments to the
Declaration;
WHEREAS, the Andover EDA and Capstone Homes, Inc., as holders of at least sixty -
seven percent (67 %) of the total votes of the Association, now desire to cancel, abolish and
revoke the Declaration; and
WHEREAS, following the cancellation, abolishment and revocation of the Declaration,
the Property shall be released from the easements, covenants, conditions and restrictions
contained in the Declaration.
THEREFORE, in consideration of the foregoing, the Andover Economic Development
Authority and Capstone Homes, Inc., as holders of at least sixty -seven percent (67 %) of the total
votes of the Association, state that the Declaration of Easements, Covenants, Conditions and
Restrictions, recorded in the Office of the Registrar of Titles in Anoka County, Minnesota as
Document No. 492192.001, is hereby cancelled, abolished and revoked, effective as of the date
set forth above.
IN WITNESS WHEREOF, the undersigned have executed this instrument, effective as
of the date first written above.
ANDOVER ECONOMIC
DEVELOPMENT AUTHORITY
By:
Printed Name: James Dickinson
Title: Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of ,
2012, by James Dickinson, the Executive Director of the Andover Economic Development
Authority, a body corporate and politic, on behalf of the corporation.
STATE OF MINNESOTA
ss.
COUNTY OF ANOKA
Notary Public
CAPSTONE HOMES, INC.
By:
Printed Name:
Title:
The foregoing instrument was acknowledged before me this
by , the
Minnesota corporation, on behalf of the corporation.
THIS INSTRUMENT WAS DRAFTED BY:
Hawkins & Baumgartner, P.A.
2 t40 4th Avenue North
Anoka, MN 55303
(763) 427 -8877
day of , 20125
of Capstone Homes, Inc., a
herry
ADVANCED LIVING'
Andover EDA
Presentation Overview
• Who we are
• The demand for elderly housing
• What Chenywood Advanced Living is
• The Cherrywood business model
• How the Andover Economic Development
Authority can be involved
• Next steps
M
Key Personnel
• Key personnel
• Bob Cobom, Chairman of the Board
• Business owner, land developer, entrepreneur
• Marshall Weems, Chief Development Officer
• Developer with public and private sector experience
• Wendy Hulsebus, Chief Financial Officer
• Finance, construction and operations expertise
• Nancy Kollmann. Chief Operating Officer
• Medical. education and operational background
M
9/17/2012
1
9/17/2012
The Story
• According to the U.S. Census estimates,
the number of baby boomers will double
from 35 to 71 million by the year 2030
o The wag care and housing is provided must change to meet
the demand
• Our group which includes expertise in
healthcare, nursing homes, real estate
development, operations, finance, housing
and consulting studied other models to
determine how to provide for a segment of
this huge and growing market
.E
The Cherrywood Difference
The distinguishing characteristics of a
Cherrywood Advanced Living Home are
scale, surroundings, selections and senses
0 The scale of the Homes wID be 20 units in groups of 10 per wing.
Each wing will have:
• 10 master suites with individual bathrooms
• Shared residential kitchen and dining area
• Living room with fireplace
• Patio
• Spa
• Beauty shop
• Laundry room
• Connection to the great room
The Cherrywood Difference
• Surroundings make Homes feel like a large single family
budding where residents furnish and decorate their
rooms as they wish
• The Homes are designed, decorated and maintained like a
single family home
• Surroundings is also how the care is given to residents by
the same caregivers
• Highly trained and licensed universal workers
• Same caregivers working the same wing consistently
• Allowing residents to participate in the level of
activities that they are comfortable and able to do
9/17/2012
Typical Floor Plan
Cherrywood of Richmond
Rear Patio Area
Selection and Senses
M
CH
M,
9/17/2012
Warm and Inviting
a
Benefits to the Community
• Older adults can stay in their community
• Job creation
• 20jobs
• We vnll train employees
• Health insurance, vacation
• Real estate taxes generated
• Construction jobs
• Most money generated stays local
• Income streams through ownership
The Business Model
• Cherrywood Advanced Living, LLC (CAL) develops
and builds a Cherrywood home
• The 20 unit Cherrywood home sold to investor who
receives a monthly lease payment
• Investor enters into a 20 year lease or management
agreement with CAL to manage and maintain the
home
• or
• An HRA or EDA is the building owner rather than
an investor and owns the facility that is paid for by
end of the lease
9
9/17/2012
5
The Business Model
• The EDA can finance a Cherrywood in a variety of
ways
• The EDA is the building owner rather than an
investor and owns the facility that is paid for by
end of the lease
• Andover makes money on lease and through
property taxes
a
Benefits for Partners
• CAL can serve more residents and communities by
putting money in operations instead of real estate
o Chev ood Advanced Wving. LLC (CAL( Is the smiled nursing business.
not a rest estate holding company
• The EDA is the building owner rather than an
investor and owns the facility that is paid for by
end of the lease
• The EDA makes money on lease and financing
• The City of Andover and others makes money
through property taxes
0
Why the EDA ?
The EDA should be involved:
1. It has the authority
2. It has the mission
3. It has the ability to finance the project
4. The EDA receives immediate and long term
benefits from the development
aai
9/17/2012
R
9/17/2012
herrywood
Summary
ADVANCED LIVING`
• The demand for care and housing for older
adults is going to explode in the next
decade
• Andover can attract a Cherrywood Advanced Living
home resulting in quality housing, jobs, real estate
taxes and local expenditures
• We would like to work with you to site and finance
a Cherrywood Advanced Living home on EDA
property
• •19