Assisted-living center awaits approval
Hallowell officials to review tax break, plans for the $3.5M, 70-bed facility
Copyright © 2003 Blethen Maine Newspapers Inc.
HALLOWELL — A $3.5 million assisted-living center for seniors and those suffering from Alzheimer's disease is proposed for the Town Farm Road, but city leaders first must consider a tax break the developer is requesting.
Construction on the 70-bed center would begin next spring if the project is approved, City Manager James Rhodes said. It would create 32 full-time jobs and 21 part-time jobs, and spend $1.6 million annually in payroll and through the purchase of goods and services.
Developer Lon Walters of Augusta met with the city's Tax Increment Financing (TIF) Review Committee on June 30 to review the plans. The committee recommended that he submit a formal TIF application in which the city would receive 50 percent of the tax proceeds for 10 years.
Under those terms, the project would net the city close to $90,000 a year in property taxes for the next 10 years. After that time, all the tax proceeds —approximately $180,000 — would belong the city.
Tax increment financing is a development tool that allows businesses to negotiate a lower property-tax bill with a city. Under such an agreement, a municipality forgoes some of the property taxes on a project for a period of time.
"The council is looking favorably on this because (the preliminary application for the TIF) said a minimum of 50/50 and a minimum of 10 years," Rhodes said. "It would still have to be negotiated with the City Council."
In addition to the council's review of the project, it must also be scrutinized by the Planning Board before construction can begin.
Rhodes said Walters owns two assisted-living centers in Hallowell — Hillside Terrace on Warren Street, and Walters Home on Middle Street. He also owns a complex on the West River Road in Waterville that includes an assisted-living center and a building for those with Alzheimer's.
Walters, 55, whose business is based in Waterville, said he plans to call the new center Woodlands of Hallowell.
It would replace the Walters Home, which he said is an old building that no longer meets the needs of its 39 residents.
The new center for 46 seniors and 24 Alzheimer's patients would be built on an empty lot adjacent to the William S. Cohen Community Center. It would be an assisted-living center with a large living and activities space, he said.
"It's going to be a nice addition to the area," Walters said Tuesday. "There isn't really a nice facility like this in Augusta."
Debra Silva, regional director for three Senior Spectrum community centers including the Cohen Community Center, said the proposed assisted-living center would be a good match for the Cohen center.
"We're looking forward to having that facility built next door," Silva said Tuesday. "We would be providing services to the people who live there. We offer information and assistance on all sorts of things. We have live entertainment, and a full calendar of events they could participate in, including crafts and educational programs."
Granite Hill Estates on Balsam Drive, a retirement community in Hallowell that has an assisted-living building, also received a tax break from the city when it was built four years ago.
Last year, MaineGeneral Health acquired full ownership of Granite Hill Estates from JBW Management Inc., the original developers. MaineGeneral Health gets a 60 percent tax cut from the city for up to 15 years.
Many people thought the city was too generous when that arrangement was made, so a committee studied the matter and developed an 11-page policy that outlines requirements for TIF applicants. The policy says a TIF has to be at least a 50/50 split in tax proceeds — 50 percent for the city and 50 percent being kept by the developer —and at least 10 years in length.
Mechele Cooper — 623-3811, Ext. 408
mcooper@centralmaine.com