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Minutes - 03/18/2002 - Plan CommissionVILLAGE OF OAK BROOK PLAN COMMISSION MINUTES March 18, 2002 CALL TO ORDER The meeting was called to order at 7:32 p.m. MEMBERS PRESENT: Chairman Members Arrived 7:38 p.m. MEMBERS ABSENT: ALSO PRESENT: Village Trustee Village Trustee Director of Community Development Village Attorney A quorum was present. IL APPROVAL OF MINUTES Stelios Aktipis Paul Adrian Samuel Girgis Surendra Goel Barbara Payovich Anthony Tappin Alfred Savino Elaine Miologos Robert Kallien Richard Martens Member Goel moved, seconded by Member Girgis, to waive the reading of the February 18, 2002 Plan Commission Meeting minutes and to approve them as amended. VOICE VOTE: All in favor. Motion passed. IV. DUPAGE HOUSING AUTHORITY — 3400 ST. PASCHAL DRIVE — PRELIMINARY AND FINAL SUBDIVISION PLAT TO SUBDIVIDE 6.189 ACRES FROM THE MAYSLAKE FOREST PRESERVE PROPERTY — TEXT AMENDMENTS and SPECIAL USE IN THE CR DISTRICT to CONVERT THE EXISTING FRIARY BUILDING INTO A SENIOR CITIZEN ASSISTED LIVING FACILITY Chairman Aktipis briefly reviewed the request before the Plan Commission this evening. Director of Community Development Kallien said that at the last meeting the DuPage Housing Authority was requested to provide a number of additional items for consideration. 1. Clarification of the Landscaping along Route 83, including a detailed drawing that has been submitted. 2. The Bar charts presented at the last meeting were also requested and submitted. 3. A reference was made to a marketing study and 12 -page Executive Summary of same. It has been submitted. 4. Additional information was requested regarding building elevations (along with color details) It has been provided. 5. There was a concern that this proposed use would have an impact on the EMS services. A statement was provided. Our own fire /police departments are still evaluating. PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc -Outr March 18, 2002 6. It was requested that someone from the Forest Preserve District be presented to discuss the relationship between the parties. 7. It was also requested that someone from the Consulting firm that prepared the marketing report be available to answer questions. 8. A traffic study was also requested and has been presented. 9. Since this property is going to be transferred from the Forest Preserve District of DuPage County to the DuPage Housing Authority, a copy of the contract was requested. 10. Impact of the conversion on adjacent property. It was requested that a certified appraiser be retained to address those issues as well as the highest and best use for the property. 11. A revised plan to see where the garages would be situated on the property. It has been provided. 12. A question was raised regarding how they were going to manage to have the site fully occupied. 13. It was requested that a projection be provided as to what the real estate will be for this type of property. 14. A question was raised to see if the site could be visited with a tour. A letter was submitted in response. Director of Community Development Kallien said that most of the information requested was provided. Chairman Aktipis asked the DuPage Housing Authority to address the items. Mr. Arnold Germain, DuPage Housing Authority Director of Development, said that a revised site plan has been submitted to the Village, which includes the garages as well as the landscaping. A picture has been submitted depicting the green barrier between the road and the property. Currently, the barrier has 15 -20 foot high evergreens, and a picture has been provided. A picture has also been provided depicting any exterior changes that would be created by the renovation. There should be no cost to the Village on EMS services because they have staff that will be there 24 hours a day, 7 days a week. If there is a call it will require transportation. Most of the residents will be 75+ years, they will have their own security staff on premises and there will be very little impact on the Police Dept. As far as Fire Dept., the building will be completely sprinkled. Every six months, it is required that the facility has an emergency evacuation drill in conjunction with the Police and Fire Departments of the municipality. A traffic study was received from the DuPage County Transportation Department, which shows that the number of vehicles per day on St. Paschal's was 2,969. They do not anticipate more than 116 in and out traffic per day from the facility, which is an increase of .04 %. Chairman Aktipis asked about the impact of the property on adjacent property values. Mr. John Day, President of the DuPage Housing Authority, said that they have been in contact with the Assessor's Office as an independent source. They did not want to raise the issue, that someone would say a report was biased because they paid for an appraiser. The Assessor's Office said that they would do it. Chairman Aktipis said that the Assessor's office is notoriously unreliable. They operate under very different rules and assumptions, than appraisers do. He said that if they would agree to pay for an independent appraiser, the Village would pick one. Mr. Day agreed. Chairman Aktipis said that they had also requested the contract, and it had just been given to the Village Attorney for review this evening. Chairman Aktipis asked that in the event the proposed project is not able to survive financially, what are the provisions under the contract that would bring it back to the Forest Preserve District PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc 2 -40a� March 18, 2002 Dan Gooch, Executive Director of the DuPage Forest Preserve District, answered that he did not remember the specific circumstances, but the outcome is that the Forest Preserve District gets the property back. Member Goel asked for the history of how the Forest Preserve acquired the property, and how it progressed to the current project. Mr. Gooch responded that it was acquired as a result of the public's desire for the Forest Preserve to have a referendum for the purpose of the acquisition of the property. It was not an initiative of the Forest Preserve Commission but that of the public of DuPage County to see if they (Forest Preserve Dist.) would have a referendum for the public to ask if they would like to raise money to purchase this property. He recollected that there was a referendum, and the first one failed. About six months later, a second referendum was successful. As a result, their board felt that there was enough interest within DuPage County to purchase the property, approximately nine years ago. It took another year or so to acquire the property. Mr. Gooch said that they really did not want this property, because what would they do with the buildings. However, when the public was anxious to have it purchased they did it. At that point, it was determined that the buildings needed to be put to some logical public purpose. The alternative was the possibility of tearing the buildings down and restoring the site to open land. The cost of demolition was substantial, so they sought public use. The history in particular was to create a cultural arts facility. They sought an organization that could create those activities. The group operated the building for a number of years and they had a great difficulty in raising the money to make the improvements to the building. At that point, the relationship was severed, and the District looked for other suitable users. A request went out for proposals. They received a number of commercial responses as well as from not - for- profits. The proposal from the Housing Authority seemed to have responsible potential at the time and was accepted. Member Goel asked if the Forest Preserve District was comfortable that the project would survive. Mr. Gooch said they believe it is viable and the Forest Preserve is happy not to have to deal with the buildings again. Member Goel asked if the Forest Preserve District was just trying to unload the property. Mr. Gooch said that they were looking for the most responsible organization in utilizing it. He cannot speak for the Board, because there are 25 members that have different reasons for voting on things, just as other boards do. It is difficult to characterize all their reasons. Member Girgis asked what the cost was to the Forest Preserve District. Mr. Gooch responded that he recollected the bond was $17 million and they paid approximately $16.5 million for it. Member Adrian asked what the cost of upkeep has been on a yearly basis. Mr. Gooch said that it was considerable, but recently they changed their agreement with the Housing Authority so that they sustain the monthly costs. Member Payovich asked if the project failed, what would it cost to tear down the buildings. Mr. Gooch said that it would be in excess of $1 million. Chairman Aktipis asked if the language in the original referendum related to open space. Mr. Gooch said that as he remembered it said something about the acquisition of the Mayslake property. Chairman Aktipis said that his recollection was that the issue was for open space. Mr. Gooch responded that typically their referendum would say something about parks, and open space purposes, or for recreational purposes. Chairman Aktipis said that a question would be how the present proposed use jives with the intent of the referendum under which the Forest Preserve District acquired the property. Mr. Gooch said that they PLAN COMMISSION Minutes 3 PC -MTG. 02- MAR.doc March 18, 2002 checked with their Bond Counsel because it was a legal issue for funds to be raised appropriately. If less than 5% of the value of the purchase is conveyed to some other entity, then they believe that the spirit of the bond was maintained. This particular building had a negative value for the Forest Preserve District. That was the proposed value as well when it was originally appraised. Chairman Aktipis asked why anyone would engage in a project starting from a negative place. Most developers would look at a project, starting with a certain value, then adding to it, and eventually making it a successful project. Does this represent that the cost of developing this particular project to the point that it comes to generate profit is such that the end point would be difficult to reach? Mr. Gooch said that they had some proposals that looked like they would be very viable as well. The buildings are a liability to them as a Forest Preserve District, but may be of great asset to many other groups of people. The Forest Preserve District is not in the building business. Most of the things the Forest Preserve provides are not necessarily building oriented. Their statutes indicate that their main purpose is for buying for preserving open space for things that occur in the out of doors. Small parts of their statute indicate that they can do some things inside. Member Adrian said that as he recalled the arrangement between the Forest Preserve District and the Housing Authority the purchase cost was one dollar and whether that was offered to other independent developers? Mr. Gooch said that groups responded to their proposal without knowing whether it would be legally possible for the Forest Preserve to participate in an agreement with them. The Forest Preserve would have been precluded from a legal sense from dealing with the commercial offers. The Forest Preserve cannot sell land to a private entity. Chairman Aktipis asked if the present developer was selected by default. Mr. Gooch said that there were no other viable options at the time. Chairman Aktipis asked if the project did not succeed and the Forest Preserve District took it back, then what would happen to the property? Mr. Gooch said that the board would have some options, such as, to look for another suitable receiver, or find demolition, or another way for the Forest Preserve to use it. There is a change in the board coming, so there could be change in philosophy on the way the board would spend money. Chairman Aktipis added that in the meantime the Forest Preserve would have spent close to $20 million and there would be outstanding bonds that presumably someone has bought. He asked if that would complicate the picture and how would that react with their interest in the property. Mr. Gooch responded that there are some things that protect the Forest Preserve District from that situation. The Forest Preserve District is not interested in getting the building back. Village Attorney Martens asked if the Forest District considered coming in as a co- applicant with the Housing Authority? Mr. Gooch did not know. Village Attorney Martens asked about the type of agreement that he had referred to that was nearly complete. Mr. Gooch responded that he was referring to a conveyance agreement. In a copy of the agreement given to him by Attorney Howlett, indicates that if the Housing Authority get financing and zoning then the Forest Preserve District will convey to the Housing Authority and will retain title. Village Attorney Martens said that there is a provision in the statutes that allows for one municipality to convey to another, so long as the second municipality continues to use it for public purposes. He questioned if the Forest Preserve District has approved the financing obtained by the Housing Authority. Mr. Gooch did not know. Member Payovich asked if the property was conveyed to the Housing Authority, would they have different restrictions as to how they could transfer it at some future time, or are they obligated to transfer it to another governmental body, as the Forest Preserve District is. Village Attorney said that we may need to hear from the Housing Authority on that issue. PLAN COMMISSION Minutes March 18, 2002 4 PC -MTG. 02- MAR.doc PUBLIC COMMENT Chairman Aktipis asked if anyone in the audience would like to ask questions or comment. Bob Waite, 3609 Madison has been a resident since 1966. He said that this has been dumped on the Forest Preserve District they and have worked long and hard to answer the questions. They think that they have come up with a viable solution. The only question he has is whether it is good or bad to transfer property to another government entity and then what happens after that. Aside from that, he said that we live in an aging population and even Oak Brook cannot get away from that. There is an ever - increasing need for care homes of all levels. It will not stop and will get worse. It is a great inconvenience when you cannot find a suitable place unless its thirty miles away from home. It is wonderful if you can find a good home close by. This would help many people in Oak Brook. As far as the evaluation of property, the building exceeded any Oak Brook homes by fifty years. Homes were built around it; the homes cannot even see the building except for maybe one. It is not as if it is being built on a street in the middle of Hunter Trails, which would be a different proposition. It bothers him that some of the questions seem kind of picky. In other words, he personally believes this is a good use for that building and would like to see a historic building preserved. Traffic at that type of institution is not at rush hour. He favors the proposal. Chairman Aktipis thanked him and added that the questions are intended to provide answers and do not reflect in any way any prejudgment on the commissions' part. Terry O'Malley, President of Breakenridge Farm Homeowners Association, said that there were a lot of comments made at the last meeting and not a lot of answers. One of the numbers is the actual cost of the facility to rehab it has bounced from $16 to $20 million. He asked if the general public would have access to the market study, as well as the construction cost to rehab the building. One of the concerns is that if the building is built, and the economics go to $35 million and all of a sudden there is building that goes into foreclosure because of the financing, then the Forest Preserve has no access to that property. The economics were not planned, because as they said, it was designed after a castle in Germany. The concrete is 18- inches thick and built to last forever. We all know that some of these structures are designed to be a facility they are talking about and the market study could help a lot of people in the community to understand. The facilities being built on Cass Avenue are estimated to be built for less than 50% what is being discussed here. He is also concerned about highest and best use, which can mean many things to many people. He would like to know what that intention is as well. Chairman Aktipis said that best use is a term used by appraisers to determine what is the most appropriate use of a particular piece of commercial real estate, and would produce the best return. He asked if the Housing Authority if they could present a copy of the marketing study. Mr. Germain said that the Executive Summary was provided, and the Marketing Study is available to be seen at the Community Development Department in the Village. They are not to be reproduced, but are available to be reviewed. Ron Cullum, 907 St. Stephens Green, said that he has heard many comments about what is going on. He said that he did not hear from anyone at Trinity Lakes, which is the only development that borders the proposed property. The Housing Authority presented to the Trinity Lakes Homeowners Association, their plans for the site. No significant objections were raised at all. Some of the board members almost abut the property and it was not a concern. In general, the feeling was quite positive. Part of the reason it was positive is that they were looking at what other alternatives there could be. The idea of a juvenile detention home or some other things published in the paper was not appealing to their residents. They felt this was a very good solution. Some elderly people in their development said that they would like to have something like this available, if not for them, for their parents. He can say for himself as well as other residents in their development that they were fairly positive, and positive relative to doing nothing. Just leaving it sit there is not an overly desirable thing from their opinion either. He said that he is PLAN COMMISSION Minutes March 18, 2002 5 PC -MTG. 02- MAR.doc speaking in favor of it, believes that it would be a positive addition, and this is from the homeowners sitting next to the development. Audrey Muschler, 55 Yorkshire Woods said that she wanted to clarify the question of the history. A developer had a contract to build 90 homes on this site. The Peabody Mansion is a very significant architectural designed building. The people that passed the referendum to save the property from development and to save the Peabody Mansion, the Chapel, and the Friary was a coalition of open space people, environmentalist, and historic preservationists. This was a county referendum. The Forest Preserve District has been very responsive and the Peabody Mansion is being restored historically. The entire 90 -acres is on the National Register of Historic Places, with the exception of the Friary and Retreat Wing. The Forest Preserve District has done a marvelous thing in finding an adaptive reuse for well hand built building by the Friars and is a marvelous resource and she commends them for doing so. Chairman Aktipis asked Mr. Gooch if he would provide a copy of the referendum language and the resolution agreement. MARKETING STUDY REVIEW Ellen Hoye, President of Hoye Consulting Services, has been in operation for the past 10 years. Prior to that she has had 20 years of market study work under her belt. She has done projects all over the country. She reviewed the marketing report as follows. This project holds the potential to be extremely unique, partially because of the architectural design of the building and its historic nature to the community. In just doing the primary market research, when you say "the Friary" 80% of those asked know immediately where it is. They acknowledge that this holds some prevalence for this community. • From the demographic standpoint that currently exists for Oak Brook, as well as the surrounding communities, the level of need that is currently being experienced is on an average level at this point. In reviewing the demographics over the next five years, it is going to jump almost 20 %. The adult children that currently exist in the community's market is only going to increase further. Often times an assisted living retirement facility serves as a nice transition property from a commercial area to the residential area. The site for this purpose is beautiful. • From the potential residents to the site, the site is one of its major strengths. To be surrounded by a forest preserve and be part of the Peabody Mansion is extremely attractive. The uniqueness inside the building looks to be maintained as best as possible and still be able to meet the state's safety and fire hazards for the building. They look to maintain as much of it as possible to hold the historic and uniqueness of that building to the area. • From a standpoint of competition, with many of the existing facilities that currently are providing assisted living services in this market, their occupancies have been extremely high. The Sunrise in Willowbrook, which opened less than a year ago, achieved full occupancy within 9 to 10 months on 90 units. Those facilities that have not achieved their target occupancies are often times the older facilities in the market that have smaller units and not as service oriented or service enriched as what is planned for this project. On many different levels, this project holds its own ground. • Demographically, there is a competitive need for additional services to service the growth of seniors in the market. Oak Brook seniors do not have anywhere within their community from which to receive any assisted living services. One of the challenges that we are going to have as a society, and it will creep up on us over the next five years, then after that it will be a train wreck ready to happen. There are going to be fewer and fewer caregivers available to have services come into their homes. With the aging of the population the increase need that it represents and the demand of services will not be there. As a community you should be looking at alternative ways of providing quality services so that the seniors can be grouped together and make sure that the needed services are available to them within their community. From many different venues a quality facility in Oak Brook could serve seniors well. PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc March 18, 2002 Chairman Aktipis asked for an explanation of "capture rate ". Mrs. Hoye said that industry language from a feasibility standpoint, independent living facilities talk about a penetration rate. The penetration rate takes the total population, cuts it down to senior population, then cuts it down to the income qualified seniors out of that, and then makes a target that is between 3% to 5% are going to be able to captured or penetrated in order to fill a project. From an assisted living standpoint, they will take it a cut further to add on those that require some type of assistance with the activities of daily living. That is the capture rate. The normal capture rate level between 20 -30% is acceptable, because there has been another cut at the demographics. As the capture rate goes up that represents an increased degree of risk. Out of 100 people it would be easier to capture 20 than 30 to come live in a project. Chairman Aktipis said that the report reflects a 17% of the PMA for this particular project. Mrs. Hoye agreed and said that the PMA in this instance stands for primary market area. Chairman Aktipis said that the report lists the income cap of one -half million on the demand analysis. He questioned if that meant every resident up to the ones that make one -half million per year as the target population. Mrs. Hoye agreed. Chairman Aktipis asked further if that contradicted the trends presently of people who have an adequate income of $200,000 per year that would prefer to receive home care. Mrs. Hoye said that is true. One of the things they are looking to do with this facility, is that even for seniors that exist in their homes, one of the reasons that seniors deteriorate, often times in the later stages of their life is because they are cut off socially from their existing network. At this facility they are hoping to provide that social network to make sure that they stay a vital part of the Oak Brook community, versus that although they can afford to have caregivers come into their home to provide services, but the vitality in that is they are just receiving care. They no longer have the capability to choose in a day's time that they want to do some other activity, because there is a whole group of other seniors that they can be with and have other entertainment. A very strong concept of this project will be to provide vital activity programming to keep the seniors active. Mrs. Hoye said that the caregivers are currently available now in the community. Those caregivers are going to be harder to find as we move forward with an increasing aging population. Chairman Aktipis said that one of the issues before the Village is trying to determine the success of this project, so the figures are being reviewed with a great degree of interest. On page four of the report there are statistics regarding the price ranges. It appears that the proposed project will be pushing the envelope to the higher level in order to become financially viable. The assumption was also made that all 93 -units will be offered at market rate rents, which does not jive with the fact that some will not be offered at market rents. Mrs. Hoye responded that from a market feasibility standpoint they need to determine whether the market will support 93 units. If you do not include those that are under market rates, then the market feasibility would only be better. From a financing standpoint, whether or not the project will be able to support some nonmarket units. The financing will not be approved, unless it is proven that the reduced market rates would work. Financiers do not take the risk, unless they feel assured that it will work. Member Adrian questioned how the size of the units proposed compares to the sized units available in the market. Mrs. Hoye said that page five of the Executive Summary lists the square footage of the project units versus the range of existing assisted living facilities in the area. On most basis this project comes out on the high end. There may be one facility out of the 17 that were compared which had units on the higher end of what they have proposed. On average, this project will be as high or higher than most of the other competitors in the market. The 93 units will consist of 22 studios, 12 alcove, 55 one - bedroom and 4 two- bedroom units, which was partially dictated by the existing structure. Mrs. Hoye said that while the complete market study is 200 pages, the actual report is 33 -34 pages, plus the Executive Summary that answers each question in more detail. Member Girgis asked if there was a cash -flow projection study made. Mr. Germain responded that Bond Counsel who is financing the project is analyzing the market study. The Counsel also takes the 19 units that are not at market rate into account. John E. Day, President, DuPage Housing Authority said that they have been going through financial projections for a long time. They did one initially to be sure it was feasible to pursue this. They are now PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc 7 March 18, 2002 refining that and the market report is a big part of the financial determination by the underwriters for the Bond Counsel. Member Goel said that they are taking a beautiful building that has sentimental value and trying to preserve it and make some use of it. However, it is not very efficient from a usage point of view. The cost estimates have been about $20 million for 93 units. He estimated that the rough cost per unit would be about $200,000. If a new facility were built, would the cost be more or less. Mrs. Hoye said that it is within the high end of the range. She has not seen any facility within the last five years to be built for less than $100,000 per unit and the maximum has been about $225,000. Part of the expense associated with this project is the uniqueness to the building, which will make it an all -star facility within the country. Mr. Germain said that the existing structure limits the number of units, however the square footage of this particular project created more common area spaces which allows them to provide more activities. On a square footage, basis it is not costing anywhere near what is represented. The $20 million figure being used is not the correct construction figure. $16 million is probably the number that should be used for these purposes. Chairman Aktipis asked about the status of the project in Oakbrook Terrace. Mrs. Hoye responded that she had spoken with their planner last week. They are looking at a development that will be just east of the Fountain Square development (Meyers and Butterfield Rd). The Belmont Village Developers said that they have two other projects that have opened this year (Glenview and Carol Stream) and they have focused to get those facilities operating at targeted occupancies before they move forward with this project. They felt from a standpoint it was there within 3 -4 years, once all the approvals have been put in place. The Village planner had not seen any final drawings at this point. Chairman Aktipis asked what it means when a certificate of need" (issued by the Illinois Health Facilities Planning Board) has been denied. Mrs. Hoye responded that up until this past year the licensing body for assisted living and the licensing they would provide is for sheltered care, was done by the Illinois Health Facilities Planning Board. In order to receive a certificate of need, which was necessary before you could proceed with construction, you had to go through the review process on the state level or approval. You had to prove demand, need and everything else. Over the past year, a new licensing group took over assisted living. The State still licenses sheltered care and the only reason a facility would require sheltered care is if it is part of a nursing home facility. The Illinois Health Facilities Planning Board is the states level to attempt to hold down development cost which they ultimately reimburse through Medicaid and Medicare. Now that sheltered care or assisted living development has been shifted out of the health care program, the certificate is no longer necessary for the development of assisted living. Chairman Aktipis asked if a certificate is denied does that mean that they have determined that the area is not in need of additional space. She said not necessarily and referred to the Oaks of Burr Ridge. The Oaks of Burr Ridge currently have a facility that is in operation. It is an older mansion, no elevators in the building a lot of negative features that do not support senior living. The state has determined, since they want to add on 32 -35 units of assisted living, but they also want to add 80 nursing home beds. The primary focus of the state at this point is the nursing home beds. That is what they are reimbursing. They have determined that the nursing home beds have been over built. The denial is primarily due to that. Tom Richardson, 21 Yorkshire Woods, is a 17 -year resident. He is retired from the College of DuPage after 25 years as a Coordinator. One of his responsibilities was coordinating the human services training program. He was also instrumental in developing the older adult institute. Over the years he has had the opportunity to see assisted living develop as an option whereas before people were forced to go into nursing homes when that really was not a viable option. He has also had the opportunity to visit many of the assisted living facilities as they developed. He became aware of what was affordable housing; and you do not think of that and Oak Brook in the same sentence. Some people like it that way, but he thinks it would be nice if our community could contribute to affordable housing as other communities have in DuPage County. He was pleased to see that this proposal was going to include some affordable housing units. He would like to see a higher amount dedicated to affordable. He does PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc �8J� YJ�'r March 18, 2002 not believe it will be difficult to sell the units because it would be very hard to beat the location. There is nothing to compare to it in any of the other assisted care living facilities. He had a chance to review some of the programs and services that would be available and seems to be better than most other assisted living facilities in this area in terms of what they offer. He would hope that if the proposal passes all the rules he believes it would be an incredible asset for DuPage County and Oak Brook. It would also allow some affordable living that really is not available in DuPage County. Chairman Aktipis clarified that his question had referred to the parameters that were used for the study to make certain that they corresponded with what they have seen in the report. He asked the Housing Authority to respond to the number of available units. Mr. Germain said that 20% or 19 units are being set aside due to financial restraints. Without the market rate, the affordable units cannot be offered. Director of Community Development Kallien said that in reviewing the market report summary a great deal of effort was made to analyze the Oak Brook statistics. From a marketing perspective, he asked if they could estimate the percentage of Oak Brook residents that would be expected to be housed in such a facility. Mrs. Hoye said that was not done in her model to come up with a specific number for Oak Brook. However, she estimated that somewhere between 15 -25 residents could be targeted for current services, and probably within the community there are an estimate of 200 -250 range that are currently receiving some type of assisted living services in their home. They do not look to capture all of that which is available. They look to capture just a percent that is based on industry experience. Chairman Aktipis asked how confident she feels that it would be successful. She said she had expected the capture rate to come in at the 25 -30 range, and it came in at 17 %, and she thoroughly reviewed, because her name is on this document and she holds pride that 99% of anything she has ever put her name on has been financially and operationally successful and she has been doing this for 18 years. Chairman Aktipis asked that from her perspective this project should be a winner. She responded yes. The driving force is also the increase in the number of seniors that are going to need care in the future. Trustee Savino said that basically the only thing that is being added to the property is some garages. He said that he would think that people who need assisted living would be driving and how many are proposed. He asked if this is common with this kind of facility. Mrs. Hoye said that from her experience, generally what happens is that by the time a senior may get into an assisted living setting, one -third to one -half will still own their cars and expect to bring them in. The numbers that actually drive within six months of being within the facility is somewhere between 10 -20 %. The reality is that very few will keep them. The reason for part of that is being the availability of transportation on campus to take them out. The garages are often time, gentlemen who do not want to give up a prized car so there is a garage space to keep and preserve it. Mr. German said that 18 garage spaces are planned. Director of Community Development Kallien asked if all of the garage parking spaces called for would be constructed over planned surface parking spaces. Mr. Germain agreed. He said that there are a total of 77 parking spaces available on the property. Member Adrian said that the facility is planned to be operated by the Housing Authority who have never run a facility like this before. He asked if that makes a difference to the success of the facility. Mrs. Hoye responded that the Housing Authority is going to have ultimate responsibility, however they will have a management contract with a qualified and experienced operator. Chairman Aktipis said that this is a triple layer situation where the Housing Authority has the ultimate control of what occurs. Mrs. Hoye said that they will more than likely hire an individual that will be the project director. It is not unusual to operate in this fashion. Marriott Senior Living Industries has a whole food service division that serves the industry. Chairman Aktipis said that often in a management structure one of the necessities for a successful operation is to have a clearly defined chart of who is responsible for what. Mr. Day said that the Housing Authority was created in the early 1940's and started managing property in 1983. There are three specific areas, support services, food service and the real estate. All three will respond to an executive director of the building, whom they will have someone who has the background and PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc March 18, 2002 knowledge on how to run the operation. It is a special property that needs certain talents and they want to make sure they have those. The individual will report to Mr. Day, President of the Housing of Authority. On a bigger picture basis, they will report to the nonprofit ownership entity of the Friary itself as he discussed at the last meeting, and they will report to him daily. Chairman Aktipis asked for a hypothetical renting process and the scenario involved. Mrs. Hoye said generally six to nine month prior to the opening, marketing staff and programs will be put in place and all the necessary components to build up the plan and program. At that point, the marketing program will be completed and ready to take out to the actual market. Various programs will be set up to develop community awareness, including meeting groups and a location set up with a potential model unit so that the potential residents can touch and feel along with a sense of what they will be renting into. The sale process is often times not a quick one. They slowly come to the reality that they are no longer able to do for themselves. They are not only marketing the potential senior residents directly, but also the adult children. They have targeted around a six -unit fill up per month for the operations. An actual marketing program needs to be in place at least six months prior to that. Director of Community Development Kallien said that it has been stated that the DuPage County residents would have the opportunity to locate at this facility. How does the preference aspect come into effect. Mrs. Hoye said that typically the primary draw to any facility is going to be from its closest proximity. A marketing agent can develop the urgency of getting those that live nearby to get their name on the list. They expect this project will fill at a relatively good pace. They get the word out to let people know and hopefully they will come to see the facility. They have taken into consideration, that there are other seniors in the surrounding communities that also look at Oak Brook as a desirous location. In the report, Villa Park was left out of the report because they did not know if seniors from their area would feel they could afford a facility in Oak Brook. However, all the other communities listed in the report expressed a strong desire as well as psychosocial acceptability to be able to move within facility. The results were obtained from survey calls to existing planning directors and any senior centers that were in the area and individuals that new the seniors movements in their market. It was not a random process. Chairman Aktipis asked what projected real estate taxes will be for the property. John Howlett, Attorney for the DuPage Housing Authority, said that at the last meeting that the market units will be taxed. He said that the appraiser that is retained could supply that information. Mr. Howlett said that the real estate contract is called an intergovernmental agreement that is contingent upon obtaining financing and the Village approving the necessary zoning. It began in 1999 and has three amendments. For the sake of clarification, he said that the Forest Preserve District is made up of public officials and information is obtained from all sides. Many people were interested in the preservation of the building and the Forest Preserve took proposals from many sources, including not for profits. This was not just given to the DuPage Housing Authority, for no reason. They were chosen because they have a good track record and is one of the best housing authority's in the country. HUD continually singles them out for the fine work they do. Village Attorney Martens asked the Housing Authority to supply a copy of the Title Commitment and they agreed to. Member Goel said that he would like clarification as to what happens to the property in case the project does not succeed. Mr. Howlett said that there will be three layers of protection. The contract specifically states that it is being sold to the DuPage Housing Authority because they are doing a senior project that will be owned and operated by a unit of Illinois government and they will have affordable housing as part of the mix of the housing. It will be a condition on the deed. PLAN COMMISSION Minutes PC -MTG. 02- MAR.doc 10 TLt� March 18, 2002 2. It has a force of law that the only entity that can operate this facility would be a unit of local government operating a senior complex. Also, the proposals submitted to the village specifically state a "unit of local government" or "its wholly owned subsidiary". A conditional use permit will specifically state the approved conditions. 3. The Bond Counsel will ensure that it is economically feasible because that is there problem. They will not give the money without being absolutely certain that the project can be operated successfully. Member Payovich asked if the restriction on the deed could be changed in the future. Mr. Howlett said not after it has been deeded. Member Payovich asked if there were certain restrictions could be placed in a deed that cannot be changed. Village Attorney Martens said that you cannot unduly alienate the ability to alienate property. It cannot rule forever, things and people change. There is a document which says that if someone has impressed a property with a restriction which no longer makes sense, if someone donate property to make barrels and barrels are no longer needed by units of local government, there is a way to go into court to get it modified so that it could be used for some purpose which is applicable and appropriate for a local government. Nothing is forever. Chairman Aktipis said that is why they are concerned that the village's own zoning ability could become meaningless if they have property that has failed and they need to save it. So there is a point the village could say how they are going to stop some other reasonable solution from coming into play. Village Attorney Martens said that there was some additional consideration for the extra acre of property. Mr. Day said that the Bond Counsel determined they could acquire additional property from 4.5 to 6.189 acres and they are paying approximately $300,000. That also helps to get them above the minimum threshold for a subdivision. Mr. Germain said that all the additional property acquired was only to the south and that was necessary to meet required stormwater detention. Member Adrian asked if another Illinois governmental agency could take over, what would that mean. Village Attorney Martens said that it would probably revert back to the Forest Preserve District. Mr. Day added that it could be the Village, DuPage County, York Township, it would also need to have jurisdiction. Ron Cullum, Trinity Lakes said that he was not aware of the additional property. He said that they are working with the Forest Preserve District at the present time discussing dredging the Mayslake area. One option they were discussing was putting some of the silt in the area that may be taking away. Member Payovich said she would like to see a letter from the underwriter /bond counsel as to what would happen if the project failed. Director of Community Development Kallien said that the subdivision plat needs to be discussed in detail at the next meeting. In addition, the following documents need to be provided for review at the next meeting. 1. Resolution from the Forest Preserve District and application form the DuPage Housing Authority. 2. Referendum Language that authorized the county to take over this property. 3. Appraiser to be selected by the Village, the selection to be approved and paid for by the Housing Authority. PLAN COMMISSION Minutes March 18, 2002 11 PC -MTG. 02- MAR.doc 4. Final EMS assessment from Oak Brook police and fire as to what they think the impact will be on their specific services. 5. Copy of the Title Commitment 6. Governmental Agreement including any amendments. 7. Letter from the underwriter regarding the financial feasibility aspect of the project. Member Goel moved, seconded by Member Payovich to adjourn to a reconvened meeting to consider this matter at the next regular Plan Commission meeting scheduled for April 15, 2002. VOICE VOTE: All in favor. Motion carried. V. OTHER BUSINESS No other business was discussed. VI. ADJOURNMENT Member Adrian moved, seconded by Member Payovich to adjourn. VOICE VOTE: All in favor. Motion carried. Meeting was adjourned at 9:43 p.m. U Di for of Comm rty D pment Secretary PLAN COMMISSION Minutes 12 PC -MTG. 02- MAR.doc April 15 2002 Date Approved March 18, 2002