The Royal Palm Beach Village Council last week directed village staff to move forward in preparing a request for proposals on the sale of a 10-acre parcel of land for the construction and operation of a senior living facility.
The site, located at Royal Palm Beach Commons Park, has been set aside for a private company to run some form of senior housing. At the Aug. 4 meeting, consultant Phil Gonot of PMG Associates said that the feasibility of a successful facility in Royal Palm Beach is good due to increasing demand.
The project, designed to let aging residents continue to live in the village, was agreed upon in a strategic planning session conducted by council members. At the time, the council requested an update to PMG’s market analysis from 2011.
The 10 acres could accommodate between 120 and 180 units. Gonot examined the supply and demand for different types of senior housing. “We looked at three basic types — independent living, assisted living and skilled care,” Gonot said, adding that the study looked at both market rate and subsidized rate facilities.
The land would be sold to a developer, and the facility would be built and maintained under guidelines established by the village. Although the village would not be directly involved, it would retain oversight to assure that the facility is managed in the manner that village leaders desire.
“The village does not want to be in the business of running this senior housing facility,” he said. “But, on the other hand, if you’re going to work with someone, you want to be sure they meet the criteria that are important to this council and the citizens of this village.”
One of the questions council members asked was whether they could restrict tenants only to Royal Palm Beach residents. “You can legally do so. However, we do not feel that the market is there for that,” Gonot said. “That would not be the type of situation you should enter into, because it would limit that operator to such a degree that it might not be successful.”
The planning firm looked at the demographics of the 65-and-over population, but also at a slightly younger population who might be looking to put their parents in the facility. In existing senior housing within a 10-mile radius from the site, PMG found high levels of occupancy.
Gonot also noted that during the original 2011 study, there were two new facilities about to open. With the new facilities now in full operation, the occupancy rate is now higher than in 2011, he said.
The current number of beds in the 10-mile radius is 1,083 for assisted living and 1,400 for nursing homes. The demand for independent living is more difficult to measure because it is out of a desire to live in that type of facility, rather than a necessity, he said.
The 24 facilities within the 10-mile radius include several “step-up” facilities where residents may begin with independent living and, as they age and their needs grow, they can progress to assisted living and skilled care.
“That is a growing trend, because as they come in, they would like to stay around their friends at that particular point,” Gonot said. “This will allow them to do that.”
He noted that there’s only one senior living facility in Royal Palm Beach and several “micro units” of eight beds or less, which are all full. No future assisted-living or nursing facilities have been identified as being planned in the 10-mile radius.
Under those conditions, the demand for assisted living in the next five years will be 119 beds, which he said would be the approximate time required to find a builder/manager and get the facility opened. For nursing homes, PMG projected a need for 89 units in five years.
Gonot said a particular question to ask any potential developer is how it would market the facility to village residents.
In summary, he said current supply meets demand, but that the continuing aging of the population will increase the demand for a 124-unit facility with combined independent, assisted-living and skilled care at the park.
“Royal Palm Beach alone cannot support such a facility,” Gonot said. “We strongly suggest that it be a step-up facility, because we think that would be the best option to have a functioning facility that would actually be an asset to the community.”
Councilman Jeff Hmara said a step-up facility appeared to be a challenge in that it would have to offer a variety of services in a relatively small-scale facility. “What makes you think this is not too big a bite for us?” he asked.
Gonot said the potential developer would recommend how many units it would need to be successful. “I’m sure they will tell you that,” he said. “I believe that the demand is there.”
Gonot pointed out that during the first study, PMG was contacted by five companies interested in doing the project if the village decided to move forward. “Even if two of them dropped out, you would have three prospects,” he said.
Councilman Fred Pinto asked about the feasibility of offering village residents a discounted rate, and Gonot said that could be done, but it is difficult from a legal standpoint.
Vice Mayor David Swift said he had trouble envisioning a step-up facility that offers the needed services and amenities on the scale the village envisions.
Gonot said the independent facet could be easily integrated with existing services offered at the Harvin Center and the Royal Palm Beach Cultural Center. “All that takes is transportation and communication,” he said.
Pinto said he thought the report did not make a compelling case to move forward, adding that he wanted village staff to work through some of the questions raised by the report, including the one about it being difficult for a facility to support only village residents.
“I don’t want an easy solution,” he said. “I want a solution that is right for the citizens of this village and gives them an advantage.”
Pinto recommended more research and possibly more workshops before putting out a request for proposals.
Village Manager Ray Liggins said he thought an RFP would accomplish that goal. “If the market responds at all, that meets our goal,” he said. “Our goal is to get something built in the village that doesn’t exist today.”
Swift said he thought the report showed that the market would support the facility, and he criticized any delay. “What is the information that has to be collected for an RFP?” he asked.
Liggins said he could come back with a draft RFP citing guidelines that the proposals would have to meet.
“Once you have that, you will have the ability to test the market,” he said.
Councilman Richard Valuntas favored taking the next step, and he liked the idea of the step-up facility. “It seems like something that should be provided,” he said. “If we don’t like what the market tells us, we can say no.”
Liggins said he had enough information to create the parameters for the facility. He said he would bring that back for discussion in a council workshop to prepare the RFP.
