Posted: 2/10/05
By MaryHelen Swanson
At the request of Chisago County, the city of North Branch is proceeding with preparation of plans and specifications for improvements of 383rd Street.
Located behind Tanger Outlet Center, the street is expected to give access to the new nursing home and senior living complex that is to replace Green Acres Country Care Center.
Formerly a county project, the new nursing care facility is planned for the 20 acres south of 383rd Street.
The improvements to that road would include street and storm drainage, storm sewer, and sewer and water infrastructure. Cost of the project is estimated at $816,500. Of that cost, the county is expected to pick up $587,000 in assessments. The remainder will come from city trunk water and sewer funds.
The Chisago County board approved a cost reimbursement agreement Jan. 19 for this project. By taking care of the access road and utility connections for the new nursing facility project, the county is fulfilling an obligation to Ecumen, the firm now operating the present Green Acres Country Care Center (formerly Board of Social Ministries) as detailed in a purchase agreement.
The county board approved the purchase agreement with Ecumen last fall. Official notice that Ecumen has signed the agreement has not yet reached the county board room. But according to County Administrator John Moosey, the formal agreement is expected to be before the board Feb. 23 for final action.
Ecumen has informed the county it is terminating the current lease to operate Green Acres as of April 1, giving the six month notice as prescribed in the current lease with the county.
County responsible for street
Bids for the 383rd Street Improvements are expected to come in April 28. By that time the county will know if it has been released from the obligations of a nursing home or if it remains full owner.
On the NB city engineerís schedule, the 383rd Street project is set to begin June 22 and be completed June 2006.
According to NB City Engineer Julie Dresel, the project would also provide water and sewer service to the area west of County Road 68 (Falcon Avenue) providing an opportunity for other developers to take advantage of this utilities improvement project.
At the Jan. 24 council meeting, Councilwoman Theresa Furman questioned the length of the proposed cul-de-sac on 383rd. The city has a limit of 500 feet. This cul-de-sac apparently is approximately 700 feet.
Dresel said there might have been a variance approved by the planning commission for the longer cul-de-sac when the area was platted. The road also serves a city parcel. If the cul-de-sac is shorter, she noted, the city property would be landlocked. City Administrator Joe Lynch said the city could still address that with a variance process.
When the motion to authorize plans and specifications was made Jan. 24, Councilman Larry Erickson added that the city was to make sure the variance for the longer cul-de-sac had been approved.
City Council hears Green Acres proposal
A few days later, at a city council work session Jan. 27, Green Acres was again on the agenda and the council heard a comprehensive plan for the new senior campus which is to take the place of the current Green Acres facility.
Steve Mork, director of GACCC, gave a power point presentation showing a sketch of the proposed complex.
As proposed, it would include 50 units of assisted living, 20 memory care units and a 68-bed nursing home with all private rooms.
Mork said the new campus would provide 100 plus jobs with an annual payroll of $2.5 million.
He talked about the current changes in nursing care requirements and pointed to a statistic that said there will be 37,000 fewer nursing home beds next year across the state of Minnesota.
Mork said the industry is compensating for the bed loss by building alternative housing.
He told the council if something isnít done, GACCC is in jeopardy of closing in the near future.
But not all nursing homes are having difficulty. Dave Zwickey of Ecumen, also on hand for the work session, noted that Ecumenís other facility in Chisago County, Parmly, is doing very well.
However, it was also noted that Parmly is not just a nursing home, but a campus of senior services such as is being proposed for the new North Branch site.
Mork also told the council members that the hope is to have a clinic at the new campus. But he said no medical facility has yet agreed to come on board.
They (medical facility) will talk, Mork said, when they know the new campus is really going to happen.
Pointing to the drawing of the proposed complex, Mork also noted there is room for more housing on the 20-acres site beyond the current proposal.
The planned assisted living units, Mork went on, are to range in size from 400 sq. ft. for a one bedroom unit to 670 sq. ft. for a two bedroom unit. The assisted living units are expected to be the first phase of the complex.
There are financial challenges, Mork said. For that reason Ecumen is seeking a tax increment financing district from the city.
Ecumenís transition plan, Mork said, includes paying the county what it paid for for the 20 acres, $123,000 and paying the county $1 for the current GACCC property.
When the transaction is completed, Mork said, all risks associated with the current facility are transferred to Ecumen.
Those risks, he said, include expensive building repairs and accrued employee benefits.
Mork said there have been estimates that it will cost over $2 million to close down the current facility.
He said Ecumen is counting on the cityís support of a TIF district on the new site for the assisted living facility.
A big part of the puzzle
Ecumen also needs to issue tax exempt bonds insured through HUD for the project. It is estimated that all costs associated with the entire senior campus project will be $16 million. The actual building will be $14 million.
Finally, Mork said he hopes the city works with Ecumen to find an acceptable plan for the current 80-acre site of GACCC. A request to rezone the property for denser housing was denied by the cityís planning commission earlier this year.
The current 80-acre site is a big part of the puzzle to get anything done, Mork told the councilors.
Ecumen is meeting with city staff and a proposal is expected to be presented at the Feb. 14 council meeting.
On Monday of this week, Moosey told the Post Review that County Attorney Katherine Johnson has reviewed the final purchase agreement and has approved it.
The Ecumen representatives noted in January when they appeared before the NB city council that there were some wording changes. These changes will be noted, Moosey said, before the commissioners make their final approval.
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