Mayor Announces Agreement with Evergreen Partners, Pending Council Approval

FOR IMMEDIATE RELEASE

June 13, 2016

For additional information, please contact Mary Catherine Carmichael, 812-349-2489, carmichm@bloomington.in.gov

Mayor Announces Agreement with Evergreen Partners, Pending Council Approval

Bloomington, Ind. - The City of Bloomington has negotiated an agreement with Evergreen Partners, a developer and operator of affordable senior living facilities, to enable construction of a 115-unit assisted living facility on property it owns at 2602 E. Creek's Edge Drive in Bloomington, located in Canada Farms.

The facility, called Evergreen, will be licensed, certified and regulated under state law as a Residential Care Facility (RCF), and is permitted to house seniors who qualify for Medicaid. Evergreen will serve exclusively seniors who earn less than 60% of the area median income, which is approximately $26,000. The typical resident of this facility is expected to be 75+ years of age, needing some help to maintain their independence but not requiring skilled nursing care. This is a severely underserved population of low-income seniors, with the nearest comparable facility located approximately 50 miles away.

"I believe this is an excellent project, and an early example of how we can create more affordable housing opportunities for our area residents with creative engagement," Mayor John Hamilton said. "In order to meet our community goal of making Bloomington livable for people from all walks of life, we must expand affordable housing options with places such as Evergreen. I'm particularly pleased with this project because it helps fill such a desperate local need for affordable options for lower-income seniors needing some assistance in daily living, but not a nursing home. Over the next decades this facility will offer dignity and help to hundreds of seniors and extended families struggling to make ends meet."

Evergreen Partners has developed and operates 41 properties of this type containing over 5,500 units in 15 states.

Several aspects of the proposed agreement offer the City important benefits, including:

• This project will serve seniors of limited means with annual household incomes of less than $15,600.

• The project represents an investment of approximately $22 million that will bring an estimated 40 full-time jobs with an annual payroll of $1,300,000 to the community.

• Evergreen Partners will commit to serving low-income seniors in the facility for at least 30 years. The Internal Revenue Code requires only a minimum commitment or 15 years for such low-income housing.

• Evergreen Partners has agreed to comply with the Bloomington Living Wage ordinance, ensuring all employees will earn a minimum of $12.32 an hour with cost of living adjustments.

• Evergreen Partners has agreed to remit to the City a payment in lieu of taxes of up to $10,000 of any net cash balance it generates annually, for 30 years.

"This project will create living wage jobs in a sector of our economy that often does not. And it will provide a sorely needed housing option for our seniors," said Hamilton. "I appreciate the negotiations that led to this point, and encourage the Common Council to review and approve this project in the weeks ahead. I believe it is a win for our community."

This project was developed under the federal low income housing tax credit program that is administered jointly with the State of Indiana. The program supports facilities such as Evergreen in order to encourage their creation around the state, providing for up to 100% property tax exemptio n for a qualifying projects. Local jurisdictions are allowed to negotiate payments in lieu of taxes of (PILOTs) and, as with any other projects, other details such as compliance with the living wage statute and commitment to a term of years for low income status.

The proposed project agreement with Evergreen will go before the Common Council for review in the weeks ahead. If approved, it is expected that construction would begin in the fall with an opening in late 2017 or early 2018.

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