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2008-07-07 CC Packet Cmte of Whole-wj A,lbertville Small Town Udn9 09 CityLife. 1. CALL TO ORDER City of Albertville Committee of the Whole Agenda JULY 79 2008 6:00 P.M. Albertville Council Chamber 2. WIRELESS CONVMTTEE (15-20 minute limit) a. Elizabeth Blankenship — Presentor b. Shirley Schappek — Wireless Committee member 3. GUARDIAN ANGELS SENIOR HOUSING (15-20 minute limit) a. Dan Dixon - Presentor 4. ADJOURNMENT (need to adjourn by 6:45 p.m.) M:\Public Data\City Council\Council Packet information\2008\07-07-08\07 07 2008 1-A Agenda (COW).doc AFFIDAVIT OF POSTING STATE OF MINNESOTA SS. COUNTY OF WRIGHT Bridget Miller, being first duly sworn, says that on this 3rd day of July 2008 Bridget posted the documents as shown on the reverse side a true copy of each thereof at 3:45 p.m. at the Albertville City Offices in the window, at the City of Albertville, County of Wright, State of Minnesota. Subscribed and sworn to before me this 3rd day of ALLA, , 2008. \axq-\ lig�l� Notary Public TORT ANN LEONHARDT NOTARY PU©LIC-MINNESOTA ,�. My Comm. Exp. Jan, 31, 2009 VY� Ye!*>i, M:\Public Data\Planning & Zoning\P&Z agenda\Affidavit of Agenda Posting format.doc 1► i Au [Q:71►1110LV4 TO: FROM: RE: Mr. Dan Dixon Guardian Angels of Elk River Mr. Jay Thompson Mr. Ryan Bergman Maxfield Research Inc. Mr. Larry Kruse City of Albertville Preliminary Demand Estimate for Senior Housing in Albertville, Minnesota Introduction/Purpose and Scope of Research This memorandum contains a preliminary assessment of the market potential for a senior hous- ing development to be located in Albertville, Minnesota. Maxfield Research Inc. calculated the preliminary demand for senior housing, including demand for congregate, assisted living, and memory care units, based on the size of the income/asset-qualified target market and the supply of existing and planned senior housing product in the Market Area. The methodology used to calculate demand in this memorandum is proprietary to Maxfield Re- search but is consistent with methodologies used by analysts throughout the senior housing in- dustry. It is important to note that demand estimates and conclusions contained herein are pre- liminary, and are intended only to broadly assess the depth of demand for additional senior hous- ing in the Market Area. A more thorough investigation of the unique characteristics of the Al- bertville Market Area, outlined in a Full Feasibility Study, would reveal more specific factors that would impact demand and appropriate market positioning. This memorandum delineates the primary draw area ("Market Area") for senior housing in Al- bertville and presents an overview of the demographic and economic characteristics of the Mar- ket Area. It then inventories existing and pending senior housing developments that would be competitive with the subject development. Demand for senior housing products, including con- gregate, assisted living, and memory care, is calculated based on the demographic, economic, and competitive factors that would impact demand for senior housing units in the Market Area. This memorandum concludes with a preliminary assessment of the demand that would be cap- turable by a development on an appropriate site in Albertville. 612-338-0012 (fax)612-904-7979 615 First Avenue NE, Suite 400, Minneapolis, MN 55413 www.maxfieldresearch.com Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 2 Market Area Definition Maxfield Research Inc. determined the draw area for senior housing in Albertville, Minnesota based on geographic and man-made barriers, traffic and community orientation patterns, and our experience in senior housing feasibility. The draw area, herein referred to as "Market Area," in- cludes Albertville and the surrounding cities of St. Michael, Hanover, Rogers, Dayton, and Ot- sego and the townships of Monticello and Hassan. We estimate this geographical area would provide 65% of the market support for senior housing in a site in Albertville. The remaining portion of demand —we estimate 35%—for the subject development would be de- rived from outside the defined Market Area. This portion of demand would be comprised of people currently residing just outside the Market Area who have an orientation to the area (i.e. church, doctor, etc.), people who once resided in the area and desire to return, and parents of adult children living in the Market Area. A map of the Market Area is shown below. Albertville Market Area Shei-biune � I M*Xdce& 1. i St h iekael I - I ' I I r i I ) I ' I jioka I — - - I — I I .. otse" Hassan Dayton SK®I I I I \ I Hemiepin a I Maxfield Research. Inc MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 2 Market Area Definition Maxfield Research Inc. determined the draw area for senior housing in Albertville, Minnesota based on geographic and man-made barriers, traffic and community orientation patterns, and our experience in senior housing feasibility. The draw area, herein referred to as "Market Area," in- cludes Albertville and the surrounding cities of St. Michael, Hanover, Rogers, Dayton, and Ot- sego and the townships of Monticello and Hassan. We estimate this geographical area would provide 65% of the market support for senior housing in a site in Albertville. The remaining portion of demand —we estimate 350/e—for the subject development would be de- rived from outside the defined Market Area. This portion of demand would be comprised of people currently residing just outside the Market Area who have an orientation to the area (i.e. church, doctor, etc.), people who once resided in the area and desire to return, and parents of adult children living in the Market Area. A map of the Market Area is shown below. Albertville Market Area Almiield Research, lnc. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 3 Older Adult (Age 55+) Population and Household Trends Table 1 shows the age distribution of people and households age 55 and older in the Albertville Market Area. Data presented for 2000 is obtained from the U.S. Census. Estimates for 2008 and projections through 2013 are based on data provided by Claritas, Inc., a nationally recognized demographic services firm, with adjustments calculated by Maxfield Research according to Met- ropolitan Council figures. As of 2000, the Albertville Market Area totaled 35,340 people and 11,530 households. The population and household bases increased by 60.1 % and 67.7%, respectively, through 2008 and are projected to continue to grow through 2013. By 2013, the Market Area is projected to total an estimated 68,846 people and 24,179 households. TABLE 1 OLDER ADULT (55+) POPULATION & HOUSEHOLD AGE DISTRIBUTION ALBERTVILLE MARKET AREA 2000-2013 POPULATION Age I ' 55 to 64 2,248 4,924 7,149 2,676 119.0% 2,225 45.2% �59.4% 70 to 74 492 881 1,404 389 79.1% 523 w s 80 to 84 216 382 509 166 76.9% 127 33.2% _ _ = - Total55+ 4,053 8,433 12,528 4,380 108.1% 4,095 48.6% Rim J Tota175+ 675 1,245 1,767 570 84.40o 522 " 41.90,16 Tot. Pop. 35,3401 1 56,5911 1 68,8461 1 21,251 60.1%1 1 12,255 21.70/. HOUSEHOLDS Age I 55 to 64 1,315 2,856 4,174 1,541 117.2% 1,318 46.1% 70 to 74 280 547 869 267 � 95.4% 322 58.9% OWN-a� 80 to 84 151 236 326 85 56.3% 90 38.1% Total55+ 2,366 5,024 7,518 2,658 112.3% 2,494 49.600 Total75+ 4721 759 11093 287 60.8% 334 44.00 Tot. HH 1 11,5301 1 19,3391 1 245179 7,809 67.7%1 1 4,840 25.0% Sources: U.S. Census Bureau; Claritas, Inc.; Maxfield Research Inc. • The Market Area's older adult and senior population and household bases experienced robust growth in all age segments between 2000 and 2008. Between 2000 and 2008, the Market MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 4 Area's older adult and senior population (55+) grew by about 4,380 people (108.1%) and 2,660 households (112.3%). • The 55+ population and household bases are expected to continue to experience strong growth through 2013, although this growth is projected to occur at a lesser rate. Between 2008 and 2013, the Market Area's older adult and senior population is projected to add ap- proximately 4,095 people (48.6%). • Growth in the older adult and senior population overall is predominately propelled by growth in the younger senior cohorts. The 55 to 64 age cohort is projected to have the highest nu- merical growth between 2008 and 2013 (2,225 people, or 45.2%), followed by the 65 to 69 age cohort (825 people, or 59.7%), and the 70 to 74 age cohort (523 people, or 59.4%). Growth by percentage is projected to be highest for the 65 to 69 age cohort. Additionally, the older senior age cohorts (75+) are projected to experience considerable growth through 2013, although the growth numerically and by percentage is less than younger age cohorts. Comparatively, less growth in this age range can be attributed to a pe- riod of low birth rates during the Great Depression, which impacts the numerical composi- tion of aging cohorts today. Between 2008 and 2013, the 75+ age cohort is projected to add 522 people, or 41.9%. • Household growth trends are an important factor in assessing demand for housing products since households represent occupied housing units. Similar to population growth trends, household growth in the older adult and senior age cohorts is projected to continue to be strong. Between 2008 and 2013, the 55+ age cohorts are projected to add a total of 2,494 households (49.6%). Growth in younger and older senior households will drive demand for additional service - enhanced senior housing products. The target market for housing with services is typically households age 75 and older; through 2013, this segment is projected to grow with an addi- tion of about 335 households (44.0%). These households will be the primary market for the subject development. Older Adult and Senior Household Incomes Table 2 shows income levels for older adult and senior households in the Market Area in 2008 and 2013 based on information provided by Claritas, Inc. It is important to note that the data does not account for the asset base of senior households or supplemental income that a senior household could gain from the proceeds of a sale of a home or from contributions from family members. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 5 MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 6 The frailer the senior, the greater the proportion of their income they will typically spend on sen- ior housing alternatives. Studies have shown that seniors are willing to pay increasing propor- tions of their incomes on housing with services, beginning with an income allocation of 40% to 50% for market rate active adult housing with little or no services, increasing to 65% for inde- pendent/few-services care and to 80% to 90% for assisted living housing. The proceeds from the sale of their home, as well as financial assistance from their adult children, are often used as sup- plemental income in order to afford senior housing alternatives. The data provided in Table 2 is incorporated into our demand calculations, which are presented in a following section. The following are principle conclusions from Table 2. As of 2008, the median household income is an estimated $76,950 for households age 55 to 64, $38,620 for households age 65 to 74, and $29,310 for households 75 and older. The higher incomes for older adult (55 to 64) and younger senior (age 65 to 74) households com- pared to older senior households (age 75+) are primarily due to the fact that a higher propor- tion of younger seniors are married and are more likely to have two pensions, along with the fact that many younger seniors continue to have income -producing employment. • The income -qualified market for senior housing is defined as households earning annual in- comes above $30,000 ($35,000 in 2013 after adjusting for inflation). As of 2008, there are approximately 1,234 senior households (age 65+) in the Market Area with incomes of at least $30,000, accounting for 56.9% of all 65+ households. • Demand for market rate senior housing products will be supported by an increase in the num- ber of older adult and senior households that income -qualify for housing products. Through 2013, we estimate the number of age- and income -qualified households will reach 1,913 households, an increase of 55% from 2008. Since service -enhanced housing is need driven, seniors with low incomes are still candidates for private pay assisted living and memory care, provided they have home equity or other savings that they can utilize to pay for the costs. Very low-income seniors who are Medi- care -qualified also could live in assisted living facilities that accept Elderly Waivers. Senior Household Tenure In addition to their existing income sources, many senior households would be able to derive supplemental income to use toward housing alternatives by investing the proceeds from the sales of their homes. Table 3 on the following page shows the homeownership rates among senior co- horts in 1990 and 2000, according to the U.S. Census Bureau. The following are key points from Table 3. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 7 In 2000, homeownership rates were 95% for households age 55 to 64, decreasing to 87% for households age 65 to 74 and to 81% for households age 75 and older. Decreasing home ownership rates are often correlated with increased household age since older seniors are more likely to select renter -occupied housing as their service needs increase. In this Market Area, a sharp decrease in homeownership for households age 75 and older indicates that sen- iors begin moving to renter -occupied housing in their mid-70's. • Homeownership rates between 1990 and 2000 increased slightly for older adult (55 to 64) and older senior (75+) households. Increasing homeownership rates among these households may be due to several factors, including an inadequate supply of renter -occupied senior hous- ing options, the introduction of owner -occupied senior housing options, or an increased pro- pensity toward homeownership in the years of later life. The resale of single-family homes would allow additional senior households to qualify for market rate housing products, since equity from the home sale could be used as supplemental income for alternative housing. These considerations are included in our demand calcula- tions, which are presented in a following section of this memorandum. TABLE 3 OLDER ADULT HOUSEHOLD TENURE ALBERTVILLE MARKET AREA 1999 & 2000 Age of Householder 55-64 65-74 1 75+ Total65+ Own Rent Own Rent I Own Rent Own Rent No. of Households 1,204 67 2000 549 82 366 87 915 169 HomeownershipRate 95% 87% 81% 84% o. of Households 595 42 1 368 37 173 64 541 101 Homeownership Rate 93% 91% 73% 84% Change 1990-2000 o.of Households 609 25 181 45 193 23 374 68 Pct. Change 51% 37% 11 33% 55% 53% 26% 41% 40% Sources: U.S. Census Bureau, Maxfield Research Inc. Home Resale Values Table 4 presents home resale data for single-family homes in the Albertville Market Area from 2004 to 2007 as well as actively marketing single-family homes. This data offers insight on rela- tive ease of selling single-family homes and amount of equity seniors may be able to derive from the sale of their homes, should area seniors choose to relocate to senior housing alternatives. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 8 The following points are a summary of key findings. • The average single-family home resale price in the Albertville Market Area peaked in 2006 at $285,419. Last year the Market Area experienced a decline in average resale price of - 8.4%. The number of home sales has declined in the Market Area starting in 2006. Multi- family home resale prices peaked in 2005 at $171,729. The average resale price has declined since 2005 through 2007 when it reached $163,772, a decline of -4.6% over the two year pe- riod. TABLE 4 ACTIVELY MARKETING SINGLE-FAMILY AND MULTIFAMILY HOMES ALBERTVILLE MARKET AREA May 2008 No. of Pct. Avg. Average Pct. Median Year Sales Price Change Price Change DOM 2004 555 $262,117 -- $239,900 -- 45 2005 585 $271,426 3.6% $255,500 6.5% 64 2006 456 $285,419 5.2% $264,550 3.5% 71 2007 402 $261,389 -8.4% $244,500 -7.6% 75 Active - May 2008 498 $329,718 -- $269,950 -- 90 Median Pct. Avg. No. of Average Pct. Year Sales Price Change Price Change DOM 2004 180 $163,506 -- $160,275 -- 46 2005 162 $171,729 5.0% $169,900 6.00 78 2006 148 $169,791 -1.1% $166,450 -2.0% 75 2007 104 $163,772 -3.5% $154,950 -6.9% 84 Active - May 2008 105 $173,552 -- $164,900 -- 80 Sources: Alliance Realty LLC; Maxfield Research Inc. • Median resale prices are often a better indicator of home resale prices, since median figures are not skewed by uncommonly low or high priced homes. Median single-family resale fig- ures in the Albertville Market Area appreciated annually until 2007, at which point the me- dian resale price decreased by nearly -8%. Median multifamily resale prices peaked in 2005 at $169,900. The resale price for multifamily homes decrease in both 2006 and 2007 when it was $154,950, a decrease of -8.8% over the two year period. • The average number of days on market has lengthened substantially since 2004, although the 2006 and 2007 figures are partially skewed by a recent MLS reporting change. This figure increased from 45 days in 2004 to 75 days in 2007, indicating that it takes approximately MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 9 twice as long to sell a home in today's market. The slowdown in the real estate market will have some impact on the ability of seniors to sell their homes within a relatively short period of time. Thus, until the housing market im- proves, absorption for new senior housing, particularly adult housing that is not need driven, may be slower than demand would indicate. Currently, there are nearly 500 single-family homes and 100 multifamily homes actively listed for sale in the Market Area. Based on 2007 single-family and multifamily resales transactions, there is roughly a one year supply of pre- viously owned homes on the market in the Albertville Market Area Based on the 2007 median resale price in the Albertville Market Area ($244,500), a senior household could generate approximately $10,200 of additional income annually (about $850 per month), if they invested in an income -producing account (4.5% interest rate) after ac- counting for marketing costs and/or real estate commissions (7% of home sale price). Should a senior utilize the home proceeds on a dollar -for -dollar basis to support living in senior housing with services, the proceeds of this home would last roughly 113 months (over nine years) based on an average monthly rent of $2,000. Senior Housing Defined Senior housing is a concept that generally refers to the integrated delivery of housing and ser- vices to seniors. However, as the figure below shows, senior housing embodies a wide variety of product types across the service -delivery spectrum; products range from independent apartments and/or townhomes with virtually no services on one end, to highly specialized, service -intensive, assisted living units or housing geared for people with dementia -related illnesses (termed "mem- ory care") on the other end of the spectrum. In general, independent senior housing attracts peo- ple age 65 and over while assisted living typically attracts people age 80 and older who need as- sistance with activities of daily living (ADLs). CONTINUUM OF HOUSING AND SERVICES FOR SENIORS Fully Independent Fully or Highly Lifestyle Dependent on Care Source: Maxfield Research Inc. mu%_,%rmi,LP KL' ar.AKUH 11NU. ImSenior Housing Products Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 10 The least service -intensive projects, also termed "active adult" or "adult" projects, are similar to general occupancy housing projects; they offer virtually no support services or health care but restricting tenancy to those ages 55 and over. Congregate/optional-services projects, the next level to the right on the service -delivery spectrum, offer support services such as meals and housekeeping, but often through tiered package pricing or on an a -la -carte basis so that services can be customized for the resident's individual needs. A third type of senior housing is congre- gate/service-intensive; these projects include some basic support services in the rent and typi- cally attract a frailer senior population than adult or optional -services projects. The most service -intensive product types, assisted living and memory care, offer the highest level of services short of a nursing home. Typical services covered in the fee for both of these product types include all meals, housekeeping, linen changes, personal laundry, 24-hour emer- gency response, and a wide range of personal care and therapeutic services (either built into the fee or a -la -carte). Sponsorship by a nursing home, hospital, or other health care organization is common for assisted living and memory care projects as well as for many congregate projects. Supply of Senior Housing in the Albertville Market Area Table 5 on the following page shows an inventory of senior housing developments in the Albert- ville Market Area. These developments currently satisfy some demand for senior housing prod- ucts in the Market Area and are including in our demand calculations. The following points are a summary of key findings. • In total, the Albertville Market Area is supplied with 453 senior housing units, including adult rental, adult ownership, congregate, assisted living, and memory care housing. Two of the Market Area communities are located in the City of Albertville (Cottages of Albertville and Cottage Homes of Albertville). • The existing senior housing stock is relatively new within the Albertville Market Area. Ini- tial occupancy dates range between 1994 and 2005. Overall, the median year of initial occu- pancy is 1999. • We identify three adult rental projects with a total of 167 units, one adult ownership devel- opment with 56 units, no congregate developments, one assisted living facility with 66 units, and one memory care facility with 164 units. • The Wellstead of Rogers community is specialized and has a very large geographic draw area. As a result, we only consider 50% of the assisted living units and 25% of the memory care units located in the Wellstead of Rogers to be competitive with the subject development. IIIVt . Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 11 • The Cottage of Albertville and Cottage Homes of Albertville are the only two senior housing facilities in the City of Albertville. Currently, there are no service intensive senior housing facilities located in the City of Albertville. TABLE 5 MARKET RATE SENIOR HOUSING DEVELOPMENTS ALBERTVILLE MARKET AREA May 2008 Year Units/ Project Location Built Beds The Heritage Rogers 2005 75 Countryside Cottages St. Michael 1994 48 Cottages of Albertville Alberville 1997/98 44 Subtotal 167 Cottage Homes of Albertville Albertville 1998/99 56 Subtotal 56 ==None Wellstead of Rogers @BEIM Rogers SEE= 1999/02 66 Subtotal 66 Wellstead of Rogers Rogers 1999/02 164 Subtotal 164 Source: Maxfield Research Inc. • In total, the Market Area is supplied with over 450 senior housing units, of which 167 are adult rental, 56 are adult ownership, 66 are assisted living, and 164 are memory care housing units. Pending Senior Housing in the Albertville Market Area Maxfield Research interviewed local officials in each community of the Market Area to learn of any proposed or planned senior housing developments. As of May 2008, we did not identified any approved development or any other development in the preliminary stages. We did, how- ever, discover that the City of St. Michael is actively searching for a developer to construct sen- ior housing in their downtown. The city has designated sites that they would like to see devel- oped as senior housing. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 12 Preliminary Demand Estimates for Senior Housing Demand for Congregate Senior Housing Table 6 presents our demand calculations for congregate senior housing in the Albertville Mar- ket Area in 2008 and 2013. The potential age and income -qualified base for congregate senior housing includes all senior (65+) households with incomes of $30,000 as well as homeowner households with incomes be- tween $20,000 and $29,999 who would qualify with the proceeds from the sale of their homes. The proportion of eligible homeowners is based on the homeownership rates of areas seniors, as identified in Table 3. The number of age, income, and asset -qualified households in the Albert- ville Market Area is an estimated 1,569 households as of 2008. TABLE 6 MARKET RATE CONGREGATE RENTAL SENIOR HOUSING DEMAND ALBERTVILLE MARKET AREA 2008 & 2013 11M Age of Age of Householder Householder 65-74 75+ 65-74 75+ # of Households w/ Incomes of >$30,0001 864 371 1,409 504 (plus) # of Households w/ Incomes of $20,000 - $30,0002 257 138 321 175 (times) Homeownership Rate x 87% 81 % x 87% 81 % (equals) Potential Market = 224 111 = 279 141 (equals) Total Potential Market Base = 1,087 482 = 1,688 645 (times) Potential Capture Rate x 2.5% 10.0% x 2.5% 10.0% (equals) Potential Demand =27 +48 = 42 + 65 Total Local Demand Potential = 75 �_ J — (plus) Demand from Outside Market Area (35%) 107 (equals) Total Demand Potential + 41 + 57 = 116 = 164 (minus) Existing Competitive Units - 0 (equals) Total Congregate Demand Potential 0 = 116 = 164 (times) Percent of demand capturable at a Site in Albertville x 40% x 40% ' 2013 income -qualified figures adjusted for inflation ($35K or more + homeowners w/ inc. of $25K - 35K) Z Competitive existing and pending units include congregate rental at 95% occupancy (market Source. Maxfield Research Inc. Adjusting to include appropriate capture rates for each age cohort (2.5% of households age 65 to 74 and 10.0% of households age 75 and older) results in a local demand potential for an MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 13 estimated 75 congregate units in 2008. We estimate that seniors currently residing outside the Market Area will generate 35% of the demand for congregate senior housing — increasing total demand by about 41 congregate units. This demand will consist primarily of parents of adult children living in the Market Area, individuals who live just outside the Market Area and have an orientation to the area, and former residents who desire to return upon retirement. Together, demand from Market Area seniors and demand from seniors who are willing to locate to the Market Area totals an estimated 116 units of congregate senior housing as of 2008. Currently, there are no congregate facilities in the market and as such, no units will be subtracted from the total. No single Site can capture all of the demand in the Market Area. We have estimated that an ap- propriate Site can capture 40% of the excess demand potential in the Albertville Market Area. Applying this potential capture rate results in excess demand that would be capturable on an appropriate Site for an estimated 46 congregate units in 2008. Adjusting for inflation, we have estimated that households with incomes of $35,000 or more and senior homeowners with incomes between $25,000 and $34,999 would qualify for congregate housing in 2013. Following the same methodology, we project that demand for congregate housing on an appropriate Site in the Albertville Market Area will increase to about 66 units through 2013. Demand for Assisted Living Senior Housing Table 7 presents our demand calculations for assisted living senior housing in the Albertville Market Area in 2008 and 2013. The availability of more intensive support services such as meals, housekeeping, and personal care at assisted living facilities usually attracts older, frailer seniors. Hence, the age -qualified market for assisted living housing is defined as seniors ages 75 and over. Due to the supportive nature of assisted living housing, most daily essentials are included in monthly rental fees which allows seniors to spend a higher proportion of their incomes on as- sisted living housing with basic services. Therefore, the first step in determining the potential demand for assisted living housing in the Market Area is to identify the age/income-qualified market based on a senior's ability to pay the monthly fees. An income of approximately $35,000 and a 90% allocation of that income for housing translates to an affordable monthly fee of roughly $2,600, which would be an approximate base monthly fee at many assisted living pro- jects. Thus, all households with incomes above $35,000 would be able to afford the monthly fee at an assisted living facility, based on monthly fees of $2,600. In addition to seniors who are qualified based on their incomes alone, there is a substantial base of senior households with lower incomes who own their homes. These seniors have an untapped source of equity that can be used as supplemental income to defray the additional costs incurred 1V1ti,%r1r,1AL 1(Eb AKU111NC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 14 by living in housing alternatives with services. There are a significant number of seniors who will spend down their assets or will receive financial assistance from family members in order to avoid institutional care. With the 2007 average home resale value of about $244,500 in Albert- ville, there would be a significant number of seniors who would be able to derive a substantial amount of additional income from the sale of their single-family homes. Because the vast majority (90% according to the latest ALFA survey) of assisted living residents are single, our demand methodology separates the number of senior households who live alone from those who live with a spouse or other relative. We have further broken down the number of senior households by household type and income. From these figures, we apply acceptable cap- ture rates for each income cohort and household type to derive the potential age/income- qualified market. As of 2008, there are an estimated 423 age/income-qualified older seniors in the Market Area. Demand for assisted living housing is need -driven, which reduces the age/income-qualified mar- ket to only the portion of seniors who need assistance. Studies by government agencies indicate that about 30% of all seniors age 75 and over need assistance with at least three activities of daily living. Applying this proportion to the age/income-qualified household base yields a po- tential assisted living market of an estimated 127 seniors in the Market Area in 2008. We estimate that roughly 55% of the age/income-qualified market needing significant assistance with ADLs will be able to remain in their homes with the assistance of a family member or home health care. The remaining 45% will need assisted living housing. Applying this market pene- tration rate results in demand for 57 assisted living units in 2008. A portion of demand for assisted living units in the Market Area, we estimate 35%, will come from outside the Market Area. This secondary demand will include households currently living just outside the Market Area, former residents, parents of adult children who desire supportive housing near their adult children, and increasingly frail retirees returning from retirement com- munities. Applying this figure results in total age/income-qualified demand for approximately 88 assisted living units in 2008. We reduce the demand potential by the existing competitive assisted living units in the Albert- ville Market Area. As of May 2008, we calculate 31 assisted living units that would be competi- tive with an assisted living facility in the Market Area after accounting for a 7% vacancy rate. After deducting these units from the demand potential, we find excess demand for 23 assisted living units in the Market Area in 2008. The same calculations are applied to the age/income-qualified base in 2013. Due to continued strong growth in the senior population, total potential demand for assisted living housing is expected to increase to about 38 units through 2013. 1V1AAr1r,LL Khb AKCH INC. Mr. Dan Dixon & Mr. Larry Kruse Guardian Angels of Elk River & City of Albertville MARKET RATE ASSISTED LIVING DEMAND ALBERTVILLE MARKET AREA 2008 & 2013 June 3, 2008 Page 15 HHs 75+ Capture Potential Lvg. Alone Non -single Capture Potential HHs 75+ Capture Potential Non -single Capture Potential Less then $20,000 Rate HHs 209 25% 52 HH's 75+ Rate HHs Lv . Alone Rate HHs HH's 75+ Rate HHs $20-$34,999 92 75% 69 42 111 15% 6 40% 44 Less then $25,000 $25-$39,999 313 121 25% 78 62 15% 9 $35,000+ 88 100% 88 Total 389 209 217 370 75% 163 214 $40,000+ Total 130 75% 90 100% 130 145 40% 322 75% 58 242 563 299 530 309 Total potential market (times) Percent 423 608 needing assistance w/ 3-6 ADLs x 30% (equals) Age/income qualified market needing assistance = 127 x 30% 182 (times) Market penetration rate x 45% (gquals) Short-term demand = 57 x 45% — 82 (plus) Proportion from outside the market area (35%) + 30 (equals) Total potential assisted living demand = 88 + 44 44 126 (minus) Existing market -rate assisted living units - 31 (equals) Total excess market rate assisted living demand in the MA = 57 31 = 96 (times) Percent capturable by a project at a Site x 40% x 40% Inc. Hhb AKUH INC:. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 16 Demand for Memory Care Senior Housing Table 8 presents our demand calculations for memory care senior housing in the Albertville Mar- ket Area in 2008 and 2013. Demand is calculated by starting with the estimated Market Area senior (65+) population in 2008 and multiplying by the 10% incidence rate of Alzheimer's/dementia among this population. This yields a potential market of about 351 seniors in the Albertville Market Area. According to data from the National Institute for Aging, about 25% of all persons with memory care impair- ments would be potential candidates for memory care housing units. This figure considers that seniors in the early stages of dementia will still be able to live independently with the care of a spouse or other family member, while those in the later stages of dementia will require intensive medical care that would only be available in skilled care facilities. Applying this figure to the estimated population with memory impairments yields a potential market of an estimated 88 sen- iors in the Albertville Market Area in 2008. Because of the staff -intensive nature of dementia care, monthly fees for this type of housing typi- cally start at about $4,000. Residents of designated memory care housing often contribute 90% or more of their incomes for monthly fees. Thus, the income -qualified market is defined as indi- viduals with incomes of $50,000 or more, or incomes of $40,000 and non -income producing as- sets of $200,000 or more that could be converted to monthly income (i.e. senior homeowners earning $40,000 or more). As with all senior housing with services, a portion of this demand will also come from seniors who are willing to spend down assets and/or receive financial assis- tance from family members. Based on our review of senior household incomes in the Market Area, homeownership rates, and home resale data, we estimate that 45% of all seniors in the Market Area would have incomes and/or assets to sufficiently cover the costs for memory care housing. This figure takes into ac- count two -person households where one spouse may have memory care needs and allows for sufficient income for the other spouse to live independently. Multiplying the potential market by 45% results in a total of 39 seniors who would be age/income/asset-qualified in 2008. We estimate that 35% of the overall demand for memory care housing in Albertville would come from outside the Market Area. This secondary demand will include households currently living just outside the Market Area, former residents, parents of adult children who desire supportive housing near their adult children, and increasingly frail retirees returning from retirement com- munities. Together, demand from within and outside the Market Area totals about 61 memory care housing units in 2008. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 17 TABLE 8 MEMORY CARE DEMAND ALBERTVILLE MARKET AREA 2008 & 2013 2008 1 r-20-13 65 + Population 3,509 5,379 (times) 10% Dementia incidence rate x 10% x 10% (equals) Estimated senior pop. with dementia = 351 = 538 (times) Percent needing specialized memory care assistance x 25% 25% (equals) Total need for dementia care = 88 = 134 (times) Percent income/asset-qualified (equals) Total income -qualified market base ) Demand from outside Market Area (35%) l Demand for memory care units (minus) Existing memory care units (equals) Excess memory care demand in Market Area Percent capturable at a Site x 45% x 45% = 39 = 61 + 21 + 33 61 93 - 38 - 38 = 23 = 55 x 40% x 40% ' Competitive existing and pending memory care units at 95% occupancy (market Source: Maxfield Research Inc. Some of the demand for memory care housing will be satisfied by the existing supply of memory care housing in the Market Area. Due to the specialized nature and broad geographic draw of the memory care units at the Wellstead of Rogers, we only account for 25% of these units. After subtracting the existing competitive units less a 7% vacancy rate, we calculate total excess de- mand potential for memory care housing to an estimated 23 memory care units in 2008. We have estimated that an appropriate Site in Albertville would capture approximately 40% of the total memory care demand in the Albertville Market Area. Excess demand is calculated for nine memory care units that would be capturable on an appropriate Site in 2008. The same calculations were applied to the projected age/income/asset-qualified base in 2013 to determine demand for memory care housing over the next five years. Through 2013, we project demand for memory care units will increase to an estimated 22 units. MAXFIELD RESEARCH INC. Mr. Dan Dixon & Mr. Larry Kruse June 3, 2008 Guardian Angels of Elk River & City of Albertville Page 18 Preliminary Conclusions Our preliminary assessment of the factors impacting demand for senior housing, including demo- graphic, economic, and competitive variables, shows support for additional senior housing in the Albertville Market Area. A summary of the demand potential on an appropriate Site in Albert- ville is provided below. TABLE 9 SENIOR HOUSING DEMAND ALBERTVILLE 2008 and 2013 2008 2013 Congregate 46 66 Assisted Living 23 38 Memory Care 9 22 Source: Maxfield Research, Inc. Our calculations do not include any additional senior housing units beyond the existing supply as our research did not discover any proposed or planned developments that are currently in the pipeline. Should additional product come on-line in the Market Area, demand that could be cap- tured by the subject development would be reduced somewhat. Currently, we calculate adequate demand for a congregate senior housing complex. However, if project development is delayed two to three years the market will be strong enough to support the number of units generally re- quired to financially support a service intensive development. Also, designing a project that will allow units to be.phased in over time as the market strengthens will contribute to the success of a proj ect. It should be noted that our conclusions are preliminary and do not consider appropriateness of a particular site for a senior housing development, historical performance of other senior housing developments in the Market Area, price and positioning of the subject project, or other important factors (i.e. architectural, marketing and management issues) that would likely impact the market feasibility of the subject development. MAXFIELD RESEARCH INC. Guardi Angels of Elkver Daniel C. Dixon President/CEO 280 Evans Avenue Elk River, MN 55330 Lifestyles for Seniors office (763) 241-4428 direct (763) 241-4439 fax (763) 241-4443 dandixon@ga-er.org www.ga-er.org GUARDIAN ANGELS OF ELK RIVER, INC. HISTORICAL BACKGROUND IIOb7 1962 Guardian Angels of Elk River, Inc., a nonprofit organization, was founded under the sponsorship of Holy Trinity Episcopal Church of Elk River in cooperation with Elk River's business leaders and medical community to serve the elderly of Elk River and surrounding communities. 1965 A 60-bed nursing care facility, the Elk River Nursing Home (now known as Guardian Angels Care Center) was built in Elk River with the assistance of a Hill Burton grant. 1966 Riverview Apartments, a 24-unit independent living complex on the Mississippi River in downtown Elk River, was constructed to meet the housing needs of seniors with limited incomes. This project was financed by a direct loan from the Department of Housing and Urban Development (HUD). 1966 The Guardian Angels Auxiliary was organized to contribute funds for enhancing the quality of life for the Care Center residents. In addition, a volunteer program was established to assist the numerous programs at Guardian Angels. 1973 The Care Center was expanded to a 120-bed skilled nursing care facility. 1978 Guardian Angels purchased property from the Zimmerman Civic Club to be used as the site of a proposed senior housing project. 1978 Guardian Angels purchased property from the City of Becker to be used as the site of a proposed senior housing project. 1980 Under the auspices of Guardian Angels Homes, Inc., a HUD multi -site housing project consisting of 103 independent living apartments, was constructed to provide low income seniors an affordable housing option. Guardian Oaks in Elk River is a 63-unit building, Woodbriar in Becker has 20 apartment units and Pine Tree Manor in Zimmerman also has 20 units. All three locations have a dining program available for both residents and seniors residing within the service area. Guardian Oaks also houses the Elk River Senior Center. 1985 The Elk River community Hospice program was established to provide new opportunities for the terminally ill to remain at home and receive supportive care. 1986 Evans Park, a 36-unit senior independent apartment building in Elk River, was constructed to offer seniors with a moderate income an affordable living environment which offers them freedom, security, activities and meals while still maintaining an independent lifestyle. 1991 Guardian Angels Home Health Care, located in downtown Elk River, began providing skilled nursing, home health aides, homemakers and therapy services to the elderly within a 20-mile radius of Elk River. 1992 A portion of the south acreage of Guardian Angels' 22-acre campus was sold to the Fairview Hospital Development Corporation. The following year, a new medical clinic opened on this site. 1992 A 13-acre site located on Lake Orono in Elk River was acquired for possible expansion of new services for the elderly in future years. 1993 Angel Ridge, a 53-unit senior apartment building financed by a HUD Capital Advance Grant, opened its doors on the Elk River campus, providing subsidized supportive housing for the very low income elderly. 1993 A three -fold study was conducted by Trossen Wright Architects: Study One - Facility Analysis, Needs Assessment and Master Development Plan for Guardian Angels Care Center; Study Two - Conceptual Master Site Development and Cost Estimate for Lake Orono Housing Site Project; and Study Three - Expansion and Renovation Study of Elk River Senior Center. 1994 Angels On Main Adult Day Services, located in downtown Elk River, began providing daytime support and socialization for older adults. 1994 The Board of Directors approved a plan for renovation and expansion of the Care Center and the Elk River Senior Center/Dining Site located in Guardian Oaks. The Board approved a $1.1 million Capital Campaign to assist in the funding of the two projects ($500,000 for the Care Center and $600,000 for the Senior Center/Dining Site). 1995 The 22,000 sq. ft. expansion of the Care Center was completed. 1996 Guardian Angels joined a cooperative of Christian providers of senior care, CareChoice, to develop further joint programs and services. 1996 Guardian Angels sold a one -acre parcel on the Lake Orono campus to Tom and Sara Hartman. 1996 The Lake Orono property was prepared for development of assisted living, townhomes and Alzheimer's facilities. The City of Elk River worked with Guardian Angels to install a stoplight intersection with a frontage road off of the main highway to allow safe access to and from our property. 1996 Guardian Angels was awarded a second HUD Capital Advance Grant for $1.5 million to add 21 independent living apartments for very low income seniors to the existing Pine Tree Manor apartments in Zimmerman; the project will be called Pine Cone Manor. 1996 Guardian Angels sold a 50% share in its home health care agency to Elim Care ministries, forming a new independent corporation known as Guardian Angels f Elim Home Care, Inc. 1997 The Strategic Planning Committee began planning the 12-acre Lake Orono campus. Market analysis was conducted and a team was formed with the City of Elk River. Guardian Angels submitted a Planned Unit Development which was later accepted by the City Council. The property received proper zoning, permits and necessary clearance. 1998 Schematic designs for Guardian Angels By The Lake, a 60-unit assisted living facility, were completed and the sewer/water feasibility study ordered. Construction on the infrastructure began. 1998 The Physical Therapy suite was completed in the lower level of Care Center. Guardian Angels t Elim Home Care also relocated to the lower level of Care Center. 1998 Little Angels Child Care Center opened in remodeled space at Care Center. 1998 The City of Elk River issued $13,500,000 in tax-exempt pooled revenue bonds for Guardian Angels and The Wilder Foundation through CareChoice cooperative. 1999 Pine Cone Manor, a 21-unit addition to Pine Tree Manor in Zimmerman, opened in April. 1999 Guardian Angels By The Lake Assisted Living opened in August. 2000 The City of Elk River issued $3,020,000 in tax-exempt revenue bonds for Guardian Angels through CareChoice. 2001 Construction of 20 Twinhomes along Lake Orono was completed in January. 2001 Expansion and remodeling of the Elk River Senior Center/Dining Site at Guardian Oaks was completed in January. 2002 Hilmer Hartman donated 20 acres of property in Dayton to be used as a future site for senior services and housing. 2004 Guardian Angels t Elim Home Care expanded services into the Buffalo area. 2005 The 65-unit Pullman Place Cooperative located at Elk River Station opened in September. 2005 Guardian Angels t Elim Home Care adds Hospice program in the Elk River area. 2006 Guardian Angels t Elim Home Care adds Hospice program in the Buffalo area. 2007 Guardian Angels Care Center launched a capital project responding to the health needs of the seniors in its northwest metropolitan service area. The project consists of approximately 40,000 sq. ft. of new and renovated space, including a 24-bed Transitional Care Unit, an 18- bed Memory Care Neighborhood and a newly designed Town Center. 2007 Grand opening in August of Transitional Care Unit, Memory Care Neighborhood and Town Center at Guardian Angels Care Center. 2007 Guardian Angels By The Lake opened a 13-unit Memory Care Neighborhood in December. 2008 Dawn Moyer, Board chair and 32-year member of the Board of Directors, received the Minnesota Health and Housing Alliance 2008 Trustee of the Year Award in February. January 2007 I Holy Trinity Episcopal Church Members I 1 meeting per year Guardian Angels Group Corporations Guardian Angels of Elk River, Inc. Guardian Angels Health Services, Inc. Guardian Angels Homes, Inc. Evans Park, Inc. Angel Ridge, Inc. Pine Cone Manor, Inc. Guardian Angels Group Boards of Directors _ _ _ _ Guardian Angels & Elim 15 Members each Home Care and Hospice 6 meetings per year or as needed Empowered Standing Committees I I Special Projects with Board Approved Committees Jurisdictional Responsibilities. When Needed Long-range Planning 2-4 meetings per year Finance & Audit 4{ meetings per year I Fund Development I 3-4 meetings per year I Executive I As needed Nominating 1 per year or as needed Ethics I per year or as needed Note each Corporation would have a 15 member board. The same 15 individuals would serve on each board. 3/19/07 Guardian, C,--ar-lleAfi L ON Center EXPANSION PROJECT Following the groundbreaking ceremony on October 24, 2006, Guardian Angels of Elk River launched its latest capital project to respond to the health needs of the seniors in its northwest metropolitan service area. The capital project, consisting of approximately 40,000 square feet of new and renovated space in its Care Center, will result in 42 new private resident rooms, new medical services, new offices and other improvements. The 42 new resident rooms — to be located in a residential styled addition of approximately 27,000 square feet — will enable Guardian Angels to add two distinct programs that are much needed by seniors in the communities around its central campus in Elk River: a 24-bed Transitional Care Unit and an 18-bed Memory Care Unit. Guardian Angels Care Center, our 120-bed nursing facility located at 400 Evans Avenue in Elk River, was built in three phases between 1965 and 1995. A portion of the facility was built in 1973. The majority of rooms in this wing are double rooms that share a water closet with an adjoining room, creating a situation in which four individuals share one toilet. Also, the rooms are quite small with a very traditional "medical" feel and are no longer desirable by the clients we are serving. The new addition will allow us to create 42 private resident rooms complete with added amenities in the rooms such as a small kitchenette, private shower, television, telephone and Internet capability. It also allows for the creation of two very distinct services that are greatly needed: a Transitional Care Unit to provide rehabilitation services and a Memory Care Unit for seniors. A more residential style will characterize the newly constructed space both internally and externally. The interior design allows for resident neighborhoods to be developed with shorter corridors, intimate lounge spaces, ample common areas, residential style dining and larger resident rooms. The exterior will feature a mixture of building materials as well as a pitched roof (rather than the traditional flat roof), porches and courtyard space. The Transitional Care Unit is designed for the post -hospital care of clients who require additional rehabilitation prior to returning to their previous living arrangements or a setting where less intensive care is provided. The average length of stay in this unit is expected to be approximately 30 days or less depending on the client's specific medical condition. The Memory Care Unit will be a secure, monitored unit with special services that will complement the ongoing continuum of care offered at otl- Guardian Angels facilities. An enclosf outdoor courtyard will provide residen with safe access to fresh air and sunligl These additions will ensure that Guardian Angels remains at the forefront of serving seniors through loving, yet cutting edge, quality care. RESPONDING TO THE NEEDS OF SENIORS Beginning with the dedication of the then 60-bed Care Center in 1965, Guardian Angels has both expanded and diversified its programs and facilities to respond to the needs of seniors. The Care Center itself doubled its capacity to 120 beds just eight years after it opened. Housing began with the Riverview independent living apartments on the Mississippi River in 1966. Three subsidized independent living apartments were added in 1980 in Elk River (Guardian Oaks), Becker (Woodbriar) and Zimmerman (Pine Tree Manor). All offer senior dining sites and Guardian Oaks is also Care Center resident Edythe Wheaton enjoyed a beautiful flower display during the Care Centers Annual Fair. the location of the Elk River Senior Center. These buildings were augmented by market rate independent living in Evans Park six years later and then more subsidized apartments in Angel Ridge in 1993 and Pine Cone Manor in 1999. The early 1990s saw the advent of Guardian Angels Home Health Care providing skilled nursing, home health aides, homemakers and therapy service. Joining with another quality provider, Guardian Angels t Elim Home Care & Hospice services now also provides a special way of caring for people in their final stages of life. The continuum of care was even more evident with the additions of daytime support and socialization at Angels On Main Adult Day Services in 1994 and assisted living at Guardian Angels By The Lake on Lake Orono in 1999. Guardian Angels also provides management services for two additional housing options: the Lake Orono Twinhomes and the Pullman Place Cooperative at Elk River Station which opened in 2005. IMPACT OF THE CAPITAL PROJECT While Guardian Angels' capital project will not add new beds, it will significantly improve and further diversify our service to seniors. The Transitional Care Unit will provide intensive therapy and nursing care in a comfortable setting that is also far less expensive than hospital care. It will prepare patients to return to the places they lived prior to hospitalization or to a setting where less intensive care is needed. As Americans are living longer, current estimates suggest that approximately 40% of the population will receive a primary or secondary diagnosis of dementia at some point in old age. The need for memory care is projected to continue to grow. Guardian Angels' new Memory Care Unit — for which a waiting list already exists — will provide secure, comfortable and humane care to people with dementia or Alzheimer's disease. By incorporating modern design and capacity for amenities such as cable television and Internet, Guardian Angels' 42 new units will provide residents with services they need to remain as healthy and active as possible in spite of any physical or mental infirmity they may face. f (;icuaiiagl> Care Center EXPANSION PROJECT Guardian Angels of Elk River Directory of Services www.ga-er.org Campus Information 763-241-4438 Corporate Office 763-241-4428 Guardian Angels Care Center 763-441-1213 24-hr. Nursing Care Hospice Outpatient Rehabilitation Little Angels Child Care Guardian Angels By The Lake 763-241-7682 Assisted Living Apartments Short-term Respite Apartments Guardian Angels Senior Housing 763-241-4430 Subsidized and Market Rate Independent Living Apartments: Elk River, Becker, Zimmerman Pullman Place Cooperative 4, 763-633-0999� Cooperative Living for Active Act Y Angels On Main 763-241-6845 Adult Day Services Guardian Angels t Elim Home & Hospice 763-241-0654 Nursing Home Health Aides Homemaking Hospice Catered Care" Therapies Elk River Senior Center 763-241-4434 Senior Dining Sites 763-441-6288 Elk River, Becker, Zimmerman You Can Help... Volunteer Lyn Metz and pug Lucy, a certified pet therapy dog, visited with roommates Margaret Gallagher and jean Keenan, Care Center residents who will transition to one of the long-term care wings as part of the expansion and remodeling project. "From the day Elmer Johnson became our first resident in 1965, the number of seniors we serve grows and grows. Today, through a variety of healthcare, housing and support services, we serve 1,200 seniors annually and look forward to the quality care and service that we will now provide through the Memory Care and Transitional Care Units," said Dan Dixon, President/CEO. "While significant numbers of those who utilize Guardian Angels services, sometimes reaching as high as 80%, have needed some form of financial support, prudent management and community support have provided for their diverse needs." We believe our donors, friends and area businesses value seniors and the quality care and services provided by Guardian Angels. We invite their support for this important project. GUARDIAN ANGELS Anne Anderson Dan Anderson Bea Bastyr Jim Berg Barb Burandt Chuck Christian Jack Hines Keith Holme Jane Houlton Tom Johnson Linda Krieger Duane Kropuenske Jane Lindenfelser Marion Marshall Dawn Moyer Dolly Pallansch Rosemary Sobalvarro M. J. Swanson Arlene Syring R. D. Tyler, Jr. Deb Urista Stewart Wilson Gene Wipf Dennis Wold FNCXPlr= Guardian Angels - Albertville Senior Housing Data 3-Jul-08 care note: two neighborhoods includes memory care dining ng Living floor area Ifloor area sf) per floor I (nsf) per floor #floors total 17,000 1 10,200 1 1 10, % based on units floor area I floor area Isf) per floor (nsf) per floor I # floors I total area 11,000 6,600 1 6,600 11,000 6,600 1 6,600 % based on units Memory Care studio 1 br 2 br unit type 360 650 760 unit area sf / unit sf / unit sf / unit TOTAL 33% 56%n 11 % I 100% total units 18 Assisted Living area studio 1 br 2 br unit type 500 610 1020 unit Congregate Living 1 br TIF 1 br 1 br/d 2 br unit type floor area floor area 750 870 1150 1630 unit area sper floor (nsf) per floor # floors total area sf / unit sf / unit sf / unit sf / unit TOTAL 11,000 8,800 1 8,800 1 3 2 2 8 15,000 12,000 1 12,000 2 5 2 3 12 27,000 21,600 1 21,600 3 8 4 5 1 20 Town center (first floor) 13,000 Town center (second floor) 2,000 Overall GSF 107,000 6 16 8 10 % based on units 15% 40% 20% 25% 1 100% total units 40 overall total units 7971