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9/8/2017 3:06:00 PM
Tax phase-in approved for Goshen assisted-living community
This provided rendering shows the planned structure of a new assisted-living center which received tax phase-in approval from the Goshen City Council Tuesday evening. Rendering provided
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This provided rendering shows the planned structure of a new assisted-living center which received tax phase-in approval from the Goshen City Council Tuesday evening. Rendering provided

John Kline, Goshen News

GOSHEN — A new affordable assisted-living community could soon be on its way to the city.

Goshen City Council members Tuesday approved a seven-year tax phase-in request by Adlai Schrock, Development Services Group, Gardant Management Solutions Inc. and Horve Construction for the planned development of a new affordable assisted-living community to be located on Berkshire Drive in Goshen.

A tax phase-in is a partial or temporary exemption of a company from having to pay property taxes with the express purpose of stimulating economic development.

According to Matt Carr, an attorney representing the development team, the planned development will be a three-story, fully licensed residential care facility including 100 assisted living units and 30 memory care units with available private apartments, kitchenettes, spacious bathrooms with grab bars and showers, individual heating and air conditioning, emergency alert systems and prewiring for telephone and cable.

In addition, planned amenities and services for the development will include both public and private dining rooms, housekeeping, laundry, personal assistance and help with medication, transportation, activity rooms, beauty/barber salon, exercise area, library/computer area and TV/entertainment center.

Speaking to the cost of the project, Carr indicated that construction for the building itself is currently estimated at about $13.95 million, plus another $1.05 million for site work, for a total project cost of right around $15 million.

As part of the project, Carr noted that plans are to hire 49 full-time employees and 34 part-time employees to staff the facility, with projected annual wages coming to nearly $2 million.

According to Goshen Mayor Jeremy Stutsman, he and city planning staff felt a declining percentage scale tax phase-in, rather than a 100 percent abatement for all seven years, was the most appropriate option for the proposed facility.

“Originally when I met with Adlai and the other members of the group, the discussion was a 10-year, 100 percent abatement, and I had told them at the time that I couldn’t support bringing that to the council, but I would bring what our matrix scored it as,” Stutsman said of the decision. “So we put it through the matrix, and that’s where we came up with the seven-year phase-in, with decreasing percentages.”

Under the approved agreement, the development will receive a 100 percent tax abatement for the first year. That number will then reduce to an 85.7 percent abatement for year two, 71.4 percent for year three, 57.1 percent for year four, 42.8 percent for year five, 28.5 percent for year six and 14.2 percent for year seven.

As a stipulation of the agreement’s approval, facility stakeholders were required to agree to file an annual report with the city each calendar year of the abatement period which will include:

• A monthly resident census including the number and percentages of affordable apartments and number and percentages of spend-down/private-pay apartments
• The total number of current employees
• A listing of total salaries and wages
• A description of the current benefits package
• Compliance with statement of benefits form

2017 Community Newspaper Holdings, Inc.

Editor, John C. DePrez Jr.; Executive Editor, Carol Rogers; Publishers: IBRC and IAR

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