|
Proposed Friends Center City Retirement Community at the National Site
Outline of Plans, Timeline and Next Steps
Friends Center City Retirement Community is a Quaker-affiliated, non-profit organization, working to create a unique retirement option in Center City Philadelphia. We envision a diverse community where residents can live together in a supportive environment while enjoying the vibrancy, variety, and convenience of city living. We will provide access to a continuum of health care so that residents will receive the care they need throughout their lives. We also remain committed to economic diversity, a green building, and maintaining Quaker values in our operation. Over the last four plus years, a committed Board of Directors has been working hard - along with your help - to realize this vision.
The major obstacle we have encountered is the cost of such a complex. All the other sites we have looked at require construction of a new high-rise building. A well-researched financial model developed this past October by outside consultants with expertise in retirement communities indicated this type of building to be very expensive – small apartments with entrance fees of $600,000 and monthly carrying charges over $3,000.
We found this very discouraging news … until we were introduced to the National site located at 2nd & Arch Streets in “Old City,” adjacent to historic Elfreth’s Alley, near the Delaware River waterfront. We were taken by the site and the neighborhood, and the fact that while still expensive, this site would be considerably less than projected by the financial model. We do not expect to find any site in the future that will offer the economic advantages of the National site.
The site is currently owned by a developer who has been marketing it for condos, but is interested in selling it to FCCRC. The site is quite large and would consist of several new buildings, including a six-story building on 2nd Street, a ten-story building on Arch Street, and nine townhouses, which would be developed in stages. This plan affords us the opportunity to accommodate FCCRC community members over a period of several years in response to various levels of readiness to move as the community is developed. The buildings will be built on top of a private, underground parking garage, and clustered around a central landscaped courtyard. Three-quarters of the units in the first building will have a balcony or ground floor terrace, and some will have sweeping views of the city or the river. The site is located in an attractive, lively neighborhood with lots of restaurants, shops, art and theater opportunities, and with six buses and the subway within one block of the site, there is easy access to other parts of Center City.
Health Care and Dining Services We are committed to providing lifetime care for everyone, and our goal is for each resident to remain independent as long as possible. We will design all apartments to accommodate the needs of an aging population and we plan to use state of the art technology and home health care staff to allow residents to remain in their apartments for their entire life (as long as it is safely possible) and receive the necessary health care services. On-site staff will coordinate care, provide 24/7 emergency response and provide fitness and nutrition services.
All residents will need to have Medicare, including part D and Medigap insurance (or comparable health care insurance if they do not yet qualify for Medicare). In addition, residents will need to participate in a FCCRC long-term care plan (insurance) or enroll in a comparable home health plan.
Members will be able to choose a variety of dining options, with a minimum of one meal per day in a common area on site. We are currently exploring possibilities for alternative dining experiences, including partnerships with local restaurants and food service vendors.
Financial Model, Apartments and Cost
FCCRC is exploring using an equity ownership model (co-op) to develop our community, which means that residents will purchase and own their apartment. While this raises the up front cost of each unit in comparison to a traditional entry-fee model, most of our members find this method appealing, as an investment which they can pass on to their heirs. The current market value of that unit at their death (minus a modest fee to FCCRC) will become part of their estate.
For those who cannot afford a unit outright, several options exist, including obtaining a reverse mortgage which could make unit purchase affordable. FCCRC is also exploring the purchase of a building adjacent to the National site, which would be developed separately as “affordable housing,“ and merged into our community. Income levels for entrance into this kind of program would be very low (annual income of $30,000 or less).
For information about apartment sizes, amenities, and cost estimates, please refer to FCCRC’s Residential Unit Options Handout. To see actual apartment layouts of the proposed first building, as well as information about the surrounding area, visit the National’s website at www.thenationalcondos.com.
Timeline and Next Steps
One of the challenges of the National site is that we would need to move very quickly if we are to gain control of the site. This means that we will need to determine if we can find enough buyers for the first and second phases of the development. We will need to conduct market research, obtain financing, and identify a group of people who are interested and ready to put their deposits down. Over the next few months, details about specific services, amenities and costs will also be clarified. We are not offering apartments at this time. We are asking for your feedback as to whether you think this site - given estimated costs and location - is appropriate for you personally and for our community. And, if so, we would take the next steps, as follows:
April 2008: We need to have enough members (+/- 50 households) signed up and paying refundable $1,500 waiting list deposits for 2010 move-in date to warrant securing the National site.
Summer 2008: We need refundable unit deposits of possibly 10% or less of the unit purchase price from our 50+/- households to allow us to continue.
January 2010: First building (on 2nd Street) opens – residents move in!
We are asking that our members complete our Member Preferences Survey to express (a) general interest in FCCRC building at the National site, (b) when you are likely to want to move to FCCRC, (c) willingness to make a refundable $1,500 deposit within 90 days if you are interested in moving in either January 2010 (Phase 1) or late 2011 (Phase 2), and (d) willingness to make a 10% refundable deposit on the unit of your choice by August 2008 if you are interested in moving in January 2010.
If you need a copy of our survey about the National site, and/or need a copy of our Residential Unit Options Handout (which covers apartment sizes, amenities, and cost estimates) please contact Jeanne Angell at info@centercityretirement.com.
Those on our mailing list will receive our newsletters and invitations to membership events.
If you have specific questions, you can email us at . |
