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ITEM 4.2 Digincare Concept Plan0 0tCITe F o MINNESOTA CDP DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Planning City Planner Licht 24 September 2018 PRESENTER(s) REVIEWED BY: ITEM #: City Planner Licht City Administrator/Finance Director Flaherty 4.2 — Dignicare Concept Plan STRATEGIC VISION MEETS: I THE CITY OF OTSEGO: assisted living / memory care facility within Great River Centre. Is a strong organization that is committed to leading the community through innovative communication. IS A PUBLIC HEARING REQUIRED? Has proactively expanded infrastructure to responsibly provide core services. Held by Planning Commission 17 September 2018 Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. X Is a social community with diverse housing, service options, and employment opportunities. site is zoned PUD, Planned Unit Development District. Uses within the PUD District are the same as Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff and the Planning Commission recommend support a concept plan for development of a 32 unit assisted living / memory care facility within Great River Centre. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No Held by Planning Commission 17 September 2018 BACKGROUND/JUSTIFICATION: Dignicare Properties of Otsego LLC has submitted plans for development of a 32 unit residential assisted living/memory care facility to be developed on Lot 2, Block 3, Great River Centre of Otsego. The subject site is zoned PUD, Planned Unit Development District. Uses within the PUD District are the same as allowed in the B-3, General Business District, which would not include the proposed use of the subject site. The developer is requesting a PUD Concept Plan review of their proposal in accordance with Section 11-36- 4.0 of the Zoning Ordinance to obtain feedback on the acceptability of the residential assisted living/memory care facility at this location. A public hearing to consider the concept plan was held by the Planning Commission at their meeting on 17 September 2018. The applicant was present and discussed their proposed use with the Planning Commission. There were no public comments. The Planning Commission discussed the demand for off street parking within the site. The Planning Commission was very supportive of the proposed concept plan and voted 4-0 to recommend after closing the public hearing. SUPPORTING DOCUMENTS ATTACHED: 0 Planning Report dated 13 September 2018 POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES: Motion to provide the developer favorable comment regarding the proposed concept plan, subject to the stipulations listed in the Planning Report dated 13 September 2018. BUDGET INFORMATION FUNDING: BUDGETED: TPC The Planning Company PLANNING REPORT 3601 Thurston Avenue Anoka, MN 55303 763.231.5840 TPC@PlanningCo.com TO: Otsego Planning Commission FROM: D. Daniel Licht, AICP DATE: 13 September 2018 RE: Otsego — Great River Centre; Dignicare Concept Plan TPC FILE: 101.02 BACKGROUND Dignicare Properties of Otsego LLC has submitted plans for development of a 32 unit residential assisted living/memory care facility to be developed on Lot 2, Block 3, Great River Centre of Otsego. The subject site is zoned PUD, Planned Unit Development District. Uses within the PUD District are the same as allowed in the B-3, General Business District, which would not include the proposed use of the subject site. The developer is requesting a PUD Concept Plan review of their proposal in accordance with Section 11-36-4.0 of the Zoning Ordinance to obtain feedback on the acceptability of the residential assisted livng/memory care facility at this location. A public hearing to consider the concept plan has been noticed for the Planning Commission meeting on 17 September 2018. Exhibits: ■ Site location map ■ Developer's Narrative (5 pages) ■ Concept Site Plan ■ GRC Design Guidelines Land Use (2 pages) ANALYSIS Comprehensive Plan. The Comprehensive Plan guides the area adjacent to the TH 101 and CSAH 39 interchange as the City's primary area for retail, service, and office commercial uses. The Great River Centre PUD District was approved on 13 March 2006 to allow for development of a 90 acre mixed use development anchored by a SuperTarget that would be a destination commercial location for the City. The PUD District Design Guidelines establishes a goal of developing a diverse critical mass of activity that may include residential uses to complement the primary commercial nature of the development. Allowance of limited residential uses within commercial areas such as Great River Centre provides for market support for area businesses. Senior oriented facilities, such as the proposed use, are considered to be the most appropriate type of residential uses within commercial areas. The proximity to businesses and services increases accessibility for residents, they have the ability to observe ongoing day-to- day activity from their homes, and in the case of housing with services, employees present at the facility (as well as visitors) increase daytime market opportunity for area businesses. Use. The developer's narrative describes the proposed use as being 32 for rent units that provide assisted living and memory care services. The proposed units are to be divided as 18 assisted living suites that include a bath and kitchenette and 14 memory care bedroom units. Adult daycare services are also indicated to be offered in the developer's narrative. The developer's narrative indicates that there would be an 8:1 ratio persons to care providers within the facility. The developer should indicate if this ratio is maintained 24 hours per day or if different ratios apply at different times. Surrounding Land Uses. The existing SuperTarget and in-line retail stores are located to the north of the subject site. There is opportunity within that block for additional satellite uses to be developed. There is an undeveloped lot abutting the west line of the subject site and across Quaday Avenue to the northeast of the subject site. Abutting the south and east sides of the subject site is an outlot owned by the City that encompasses a regional stormwater pond. The location of the subject site provides opportunities for the proposed use to have views of area activity as well as more natural areas occurring around the regional stormwater basin. A fenced outdoor recreation area is located south of the proposed building shown on the concept plan oriented to take advantage of the natural setting related to the City outlot. Installation of landscaping along the west line of the subject would be necessary to provide screening and a buffer from future commercial uses that may develop on the abutting lot. Building Design. The proposed building is a one-story structure with a pitched roof in several sections. The rendering of the building included in the developer's narrative indicates a residential character of the architecture. Being within the Great River Centre PUD District would require that the exterior finish materials comply with the requirements of Section 11-17- 4.D.1 of the Zoning Ordinance requiring at least 65 percent brick, stone or glass materials. Landscaping. The concept site plan does not indicate proposed landscaping. The PUD Development Stage Plan required for approval of the proposed development would include submission of a landscape plan that provides for installation of boulevard trees along Quaday Avenue, landscaping within the front, side, and rear yards, and screening of future commercial uses to the west. The proposed landscape plan is subject to compliance with Section 11-19-2 of the Zoning Ordinance. 2 Floor Area. Section 11-17-6.0 of the Zoning Ordinance requires senior living uses to provide for a minimum floor area of 440 square feet for studio dwelling units. The City exempted the memory care suites at Guardian Angels Riverview Landing from this requirement and City staff recommends the same allowance be made for the proposed 14 memory care suites within the proposed facility. The developer must verify that the 18 assisted living suites comply with the minimum floor area requirement of the Zoning Ordinance. Lot Area. Section 11-17-9.D of the Zoning Ordinance requires a minimum of 1,000 square feet of lot area per senior housing dwelling unit. Again, the City exempted the memory care suites at Guardian Angels Riverview Landing from this requirement. The subject site is 2.72 acres or 118,573 square feet in area. The area of the subject site divided by the proposed 32 dwelling units equals 3,705 square feet of lot area per dwelling unit (including the memory care suites). The density of the dwelling units within the subject site is less that that allowed by the Zoning Ordinance. Setbacks. The Great River Centre PUD District is established with a 30 foot setback required from public rights-of-way and 10 foot setback from interior lot lines unless approved as part of a PUD Development Stage Plan. The proposed building is shown to be setback 60 feet from Quaday Avenue and 40 feet from the west property line, where the primary need for separation exists. The proposed building is also more than 10 feet from the south and east lot lines abutting the City owned outlot. The location of the building within the lot as shown on the concept site plan complies with the required minimum setbacks and is also appropriate for the proposed use. Off -Street Parking. Section 11-21-9.E of the Zoning Ordinance requires senior housing uses to provide one off-street parking stall per two dwelling units with proof -of -parking for one parking stall per dwelling unit. The Institute of Transportation Engineer's 3rd Edition Parking Generation Manual outlines the following off-street parking recommendations for senior assisted living and memory care housing uses: Type ZO/ITE Land Use Category Recommended Parking Ratio Stalls/Unit Riverview Landing DU Parking Stalls Zoning Ordinance Senior Housing 1.00 32 32 ITE Recommendations Assisted Living 254 0.36 18 7 Memory Care 254 0.36 14 6 TOTAL 13 The concept site plan provides 24 parking stalls, which exceeds the number of parking stalls required for the proposed use based on ITE estimates. The dimensions and construction of the off-street parking area and stalls must comply with the requirements of Section 11-21-4.1-1 of the Zoning Ordinance. 3 Sidewalk. The plans for development of Great River Centre include a sidewalk on the south side of 87th Street and west side of Quaday Avenue. The concept site plan illustrates construction of a sidewalk along the front line of the subject site consistent with these development plans. A sidewalk between the principal building and public side walk will provide for pedestrian access to the proposed development. Signs. No information regarding signs has been included with the concept plan. All proposed signs are subject to the provisions of the Great River Centre PUD District Design Guidelines and Chapter 37 of the Zoning Ordinance. Waste Storage. The concept site plan illustrates an exterior waste container storage area at the west side of the building. The area must be enclosed with a structure constructed of materials consistent with the principal building and that which complies with Section 11-18-4.0 of the Zoning Ordinance. Exterior Lighting. No information regarding proposed exterior lighting is provided with the concept plan. A PUD Development Stage Plan application must include an exterior lighting plan including photometrics showing the illumination pattern and intensity of all fixtures. All exterior lighting must comply with Section 11-16-6 of the Zoning Ordinance. Utilities. City sewer and water utilities are available at the subject site and have capacity to serve the proposed use. The developer is be required to provide a utility plan with a PUD Development Stage Plan application for connection to City sewer and water services. The developer would be required to pay utility availability and connection charges for the subject site and proposed use in accordance with Title 8, Chapters 5 and 6 of the City Code as a condition of PUD Development Stage Plan approval. All utility issues are subject to review and approval of the City Engineer. Grading. No information has been provided regarding grading, drainage, or erosion control based on the concept plan. The developer would be required to provide necessary plans for stormwater management as part of a subsequent application for PUD Development Stage Plan approval for the proposed development. All grading, drainage, and erosion control issues are subject to review and approval of the City Engineer. Park Dedication. The subject site is a platted lot of record. No subdivision of the lot is required for the proposed development. Park dedication requirements for the subject site were satisfied with the final plat of the Great River Centre. RECOMMENDATION The proposed concept plan provides for development of a senior housing facility that is consistent with the objectives stated in the Great River Centre PUD District Design Guidelines. City staff recommends approval of the concept plan as outlined below. 4 POSSIBLE ACTIONS A. Motion to provide the developer favorable comment regarding the proposed concept plan, subject to the following stipulations: The proposed development requires application for PUD Development Stage Plan. 2. The exterior materials for the proposed principal building shall comply with the requirements of Section 11-17-4.D.1 of the Zoning Ordinance. A landscape plan shall be submitted with the PUD Development Stage Plan application that complies with Section 20-19-2.13 of the Zoning Ordinance. 4. The minimum floor area of the assisted living suites shall comply with Section 11- 17-6.0 of the Zoning Ordinance. 5. All off street parking areas shall comply with Section 11-21-4.H of the Zoning Ordinance. 6. Exterior storage of waste containers shall comply with Section 11-18-4.0 of the Zoning Ordinance. 7. All signs shall comply with Chapter 37 of the Zoning Ordinance. 8. All exterior lighting shall comply with Section 11-16-6 of the Zoning Ordinance. 9. The developer shall pay utility availability connection charges in accordance with Title 6, Chapters 5 and 6 of the City Code; all utility issues are subject to review and approval of the City Engineer. 10. All grading, drainage and erosion control issues are subject to review and approval of the City Engineer. B. Motion to provide comment that the proposed concept plan is not consistent with the 2012 Comprehensive Plan and Great River Centre PUD District. C. Motion to table. Adam Flaherty, City Administrator/Finance Director Tami Loff, City Clerk Ron Wagner, City Engineer Andy MacArthur, City Attorney Overview Legend Roads —CSAHCL — CTYCL — MUNICL — PRIVATECL — TWPCL Highways Interstate — State Hwy — US Hwy City/Township Limits ❑ c ❑ t �❑ Parcels ' A To—BE—BUILT 32 UNIT/ 32 BED AssISTED LivING / MEMORY CARE FACILITY ® ::: ra I 0 FLOOR PLA TRANSACTION OVERVIEW The Sponsor, a single asset entity controlled by Dignicare Properties, & Suite Living (the "Sponsor"), Is looking for 1.5 -2 acre sites to build there 32 bed senior facility. The property must have good visibility with high traffic and be located in the 7 county Twin city metro area, The property need the zoning or the city willingness to rezone, city sewer and water. The Sponsor is seeking to start construction in the fall of 2018. PROJECT OVERVIEW The Sponsor intends to develop a state-of-the-art, for -rent Enhanced Assisted Living and Memory Care facility which will be designed to accommodate a wide range of needs for seniors to "age in place" while receiving high -touch and personalized service. The building will be single -story, wood frame construction with high quality finishes that resembles a single-family residential design. The facility will focus on providing a more intimate setting where residents are encouraged to interact with one another in a homelike environment while enjoying serene outdoor views. The Project will also feature amenities and services for the convenience of the residents including dining facilities, adult day care, sitting rooms, beauty shop, outdoor living areas, visiting physicians, and home cooked meals. The Project will consist of 32 units / beds in a residential neighborhood setting. The building is designed to cater to residents in need of either Enhanced Assisted Living care or more specialized Memory Care. The facility will contain 18 Enhanced Assisted Living 1 bed / 1 bath units with kitchenettes and 14 Memory Care studio units. Suite Living strives to create a product that, when residents see it, they immediately realize that this is what they were looking for. Most large senior housing providers are busy cutting expenses and running the day-to- day operations in a way that shows that they have gradually lost touch with the real needs, desires, and choices of their residents. Suite Living focuses on the resident by building a care model specifically focused on offering the highest levels of care to residents and building systems that will promote dignity; Safety and Security: Best -in -the industry caregiver ratios as well as their small, intimate home designs offer greater safety and security for residents; Compassionate Care: Each individual caregiver supports a maximum of 8 residents at a time. A low -stressed caregiver offers better, more focused and more compassionate care; MARKET SUMMARY According to the U.S. Census Bureau, the number of seniors is projected to increase from 39 million to 53 million by 2020 and substantially increase to 82 million by 2050 due to the baby boomers and increasing life expectancy. For Assisted Living care, demand is generated not only from the local population of those 65 and older, but also from the younger families in the sub -market who move their aging relatives to a facility in closer proximity (i.e. Adult Child Demand). Given the steadily growing demographic trends, strong employment sector, and the high occupancy of comparable facilities, the Subject Property's location appears to be a prime market for a new Assisted LivingFacility. The Subject 5 -mile PMA has a population exceeding 155,000 and 59,929 households with a median household value of over $224,800.. There is currently little competitive supply in the PMA to serve the demand. With the Project delivering just 18 units of assisted living and 14 units of Memory Care, the Sponsors do not anticipate any problems leasing at the projected rental rates and achieving stabilized occupancy within the first 7 months of operations. COMPANY BACKGROUND Hampton Companies is in the business of purchasing parcels of quality property in urban and suburban markets where growth potential can be achieved through the highest and wisest use of the land. The foundation of our company is a reputation for careful planning, attention to detail, and cost control that benefits the landowner, the community, and buyers. We typically seek out land with natural character and amenities. Based in Minnesota, we are expanded steadily with projects in Vadnais Heights, Roseville, Little Canada, North St. Paul, Inver grove heights. To attract the best development opportunities Hampton has focused on the core values that build success in the real estate development and construction business. DEVELOPER'S EXPERIENCE Joel Larson, Principal, has over 30 years' experience in the real estate industry including the management, development and construction of quality housing in various communities in both Minnesota, Wisconsin, Iowa, Michigan and Illinois. During the past 30 years Joel has specialized in developing senior housing rental projects, creating hundreds of senior housing rental units. Today Joel is a partner in a 90 unit assisted living/memory care facility in Coon Rapids, Minnesota. The highly successful operation of that facility provides the basis for the business model as proposed for the planned facilities. Joel served as Vice President at SeWSenior Living; Mr Larson is also the Chief Manager of Suite Living a memory care and assisted living organization that cares for the elderly in high acquit care situations. Joel has also served on various association and management boards throughout his real estate career. Jeremy Larson, (Vice President) serves as one of the lead land acquisition and development members. Jeremy is responsible for analyzed market and demographic studies which led the company to target specific geographic areas of development. Acquiring and developing land sites for the Companies. SUITE LIVINGS KEY PERSONAL Audrey McElwain (CEO / Operations Manager) serves as the CEO and Manager of Operations for Suite Senior Living. Audrey is a graduate from St. Cloud State University with a degree in Advertising/Marketing and Business Management. Audrey previously served as Operations Manager for Suite Living Care in Minnesota where she was responsible for hiring and managing several Assisted Living facilities in the Twin Cities. Audrey has over 12 years of experience in the senior housing Industry with extensive experience in operations, staff training, nursing, dietary, marketing, assisted living and memory care facilities. Audrey is active with industry associations including Assisted Living Federation of America (ALFA), Alzheimer's Association, Care Options and Aging with Services. Michele Nyarecha (Clinical Specialist, RN) serves as the Clinical Specialist for Suite Senior Living. Michele has a, Wks CLr1 S B.A.S from the University of Minnesota -Duluth and currently holds licenses in both Minnesota and Minnesota as a Registered Nurse. Michele has over 20 years' experience working with seniors. She served ast e�urse for Suite Living -Blaine campus from 2005-2013. She has extensive knowledge and hands-on experience with the challenging issues that face our seniors. She is well versed in the state rules and regulations that govern Assisted Living in the states of Minnesota and Minnesota. Michele is active In industry associates including Assisted Living Federation of America (ALFA), Alzheimer's Association, Care Options, and Aging with Services. DISCLAIMER: THIS CONTENTS ARE OF A CONFIDENTIAL NATURE. THE MATERIALS HEREIN WILL BE HELD IN STRICTEST CONFIDENCE, WILL NOT BE DISCLOSED TO ANY OTHER ENTITY AND WILL BE USED FOR THE SOLE PURPOSE OF EVALUATING THE OPPORTUNITY. THE FOREGOING INFORMATION WAS FURNISHED BY Dignicare Properties & Hampton Companies FOR SUITE LIVING SENIOR ASSISTED LIVING AND MEMORY CARE. SUBJECTTO CORRECTION OF ERRORS, OMISSIONS, CHANGE OR WITHDRAWAL FROM THE MARKET WITHOUT ANY NOTICE. 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