Proposed Senior Living Project South Peninsula

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Proposed Senior Living ProjectSouth Peninsula
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Purpose of Todays Town Hall Presentation

• Describe a Vision for the Senior Living Component
  of the CJL Project
• Provide Overview of the Market Data
• Capital Operations Report
• Outline Next Steps for the Jewish Home

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The Market for Jewish HomeSeniors Project in
Greater Palo AltoKey Findings from Market
Study-Updated 6/26/03

• 1. There is a Market for Independent and
  Assisted Living Project of 200 Units
• 2. 75 Of Its Market Is From
• 3 Miles North West
• 7 Miles South East
• 75 from 12 Adjacent Zip Codes
• 3. The Full Market is 7,400 Households of which
  we propose to serve 165-200 people at any given
  time.

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Jewish Seniors Residence Palo Alto Proposed
Unit Count
Due to couples, campus would serve 195 people
142 Independent 53 Assisted.
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Proposing Supported Care for 30 Over Time
(After Stabilization)
Service Cost Support (Spend Down) Pay Entry Fee
Pay Own Monthly Fee
Are Supported in Monthly Fees from Entry
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Economic Profiles

• Market Rate
• Subsidized at Move-In
• Subsidized Spend-Down after Move-In

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Economic Profile Market Rate

• Business professionals, Teachers, Artists,
  Government workers, traditional family leaders
  (wives)
• 80 Home Owners.
• Adjusted Retirement Income 50,000-150,000
• 25 Couples
• Likely educated, traveled

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Economic Profile Subsidized

• Clerical, sales, part-time workers, widows/worked
  in homes, recent resettled/ immigrated as seniors
  
• Renters, lived with others. 20 do have home
  asset.
• Adjusted Retirement Income 35,000 average
• Single or Single longer
• Varied education

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Economic Profile Those Supported After Spend
Down

• Paid Entry Fee from Sale of Home or other Assets.
• Tend to be senior seniors or survive costly
  health care needs after entry. Still qualified
  for Assisted Living.
• Adjusted Retirement Income Drops to 35,000
  average

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The Likely Senior Living Residents

• Assisted Living
• Typically Age 84-96
• Need 2-3 Meals/Day
• More On Campus Focus
• Spend 20 Hrs/Week Average
• in Campus Social Life
• Use 5-16 Hours of Personal Assistance Week
• Benefit From Short Walking Distances
• Can Make Needs Known
• Safe to Evacuate
• Estimated About 48 Units 30

• More Independent
• Typical Age 78-84
• Use Social Dining At Home Meals
• Diverse Lifestyles
• Use Campus City
• Drive, Especially Daytime
• Benefit from Fitness
• Like Convenience, Security
• Personally Engaged in
• Maintaining Health
• Estimated About 117 Units 70

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Senior Living Guiding Principles

• Jewish Orientation
• Responsive to Clients Regardless of Economic
  Capacity
• Responsive to Families (i.e. as Caregivers),
  Providers and Visitors
• Responsive to Staff
• Economic Viability and Fiscally Responsible
• Strong Community Collaboration Integration
• Dignity for Seniors
• Wellness and Prevention
• Small Scale/Size
• Marketable, Welcoming Appearance
• Evocative of Best in Independent Functioning of
  Seniors

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Senior Living Guiding Principles

• Develop enough apartments to
• Match the market units large and modest
• Create choices/flexibility (units, pricing,
  market shifts)
• Provide multiple levels of care and service
• Provide competitive service pricing (food,
  program, personal care, case management)
• Support 15 attainable 10 spend down
• Maximize dwellings for seniors who can engage in
  Campus community events
• Seniors are becoming 25 of Palo Alto populace.
• Their proportion should be an appropriate fit
  with other JCC users.

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Sample of Desired Design/Program Characteristics

• Open Spaces - Access to Gardens - Bring Outside
  Inside
• Natural Lighting Especially in Kitchens
• 7 Day/Week Reliable Transportation Off-site to
  Appts., Shopping etc.
• Ties to Other Programs in the Area, i.e.,
  Stanford
• Sound-proof Spaces Private Common Areas
• Designed for both privacy and comradery
• Social interactiveness neighborhood feel
• Inclusion of programs services that attract
  community (all ages)
• High end food and dining experience
• Laundry facilities, conveniently-located
• Concierge service
• Multi-purpose room for large group gatherings
  (events, Seders, etc.)
• Sheltered drop-off and pick up points
• 24-hour security
• Short walking distances

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Proposed Financial Strategies

• Financial Strategies Drive the CCRC Concept
• Use entrance fees and capital campaign to cover
  the costs of building multiple levels of care and
  to help fund charitable care
• Have tax-exempt bonds available to fund the
  remainder of the costs
• Entrance Fee Assumptions
• Entrance Fees Can Be Refundable or Nonrefundable
• Proposed Project Entrance Fees to be at 90
  Refundable Level
• Projected Monthly Fees Cover 98 of Projected
  Operational Expenses
• Fund Raising - 10-15 million in endowment
  earnings provide monthly rental subsidies
• Average Projected Monthly Rental Fees cover 90
  of operating costs

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Example of Project Development Steps

• 1. Jewish Home Board of Directors Endorsed
  Project to Proceed - 6/26/2003
• 2. More Detailed Feasibility on Financing
  (Sources) and Financial Feasibility
• Independent Project Cost Pro Forma
• Meet Pre-Lease Requirements
• Meet Tax Exempt Bond/Financing Requirements
• Design Development and Independent Construction
  Cost Analysis
• Project Directed to Proceed with Financial
  Model
• Additional Market Research Prospective
  Residents Decision Influencers
• Quantify the Jewish Market and Its Ability to
  Pay
• Test Design Assumptions
• Community Input
• 4. Finalize Schematic Design and Design
  Development
• 5. Proceed with Construction Documents
  
• 6. Construction to Opening