UPOR OLD BUSINESS AGENDA ITEM #1 3701 S. MAIN

SEPTEMBER 29TH , 2020

1

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review request by JaMarcus Joseph to operate a Behavioral Health Hospital at 3701 S. Main Street in a B-1,

Neighborhood Business zone and an I-1, Light Industrial zone.

APPLICANT: JaMarcus Joseph

ZONING AND LAND USES: B-1, Neighborhood Business and I-1, Light Industrial zone

ZONING: North: R-1 & R-2, Residential LAND North: Veterinary Service & Residential

South: R-2 & RMF-18 Multi Fam. USE: South: Residential

East: R-2, Residential East: Vacant - wooded

West: B-1, Neighborhood Bus West: Residential

REVIEW COMMENTS

Tabled by Commission at the last meeting for additional information.

Applicant requests approval to operate a Behavioral Health Hospital at 3701 S. Main which was

the site of a former nursing home. This request was heard in October of 2018 and failed for a

lack of majority. Pages 6-8 of this recommendation contain the minutes of that meeting.

The extreme front of the property is zoned B-1, Neighborhood Business while most of the

property is zoned I-1, Light Industrial although staff cannot find any details on why this area is

zoned that way. In the applicant’s statement, it states that the center would provide treatment for

several issues including suicide awareness, Inpatient acute care psychiatric care, psychiatric and

addictive intensive outpatient services as well as several more illnesses.

Given the majority zoning of the property the zoning may be appropriate. In fact, one city

(Bethlehem, PA) has been considering allowing such uses as permitted in Industrial zones. The

one dissension from that is the location to schools and day cares with a proposal that locations

would be 1000 feet or more from these uses.

Also, in play is the Americans with Disabilities Act and the Fair Housing Act that states: “No

qualified individual with a disability shall by reasons of such disability, be excluded from

participation in or be denied the benefits of the services, programs or activities of a public entity

or be subjected to discrimination by any such entity.” The ADA’s definition of a person with a

disability is inclusive of anyone with a mental or physical impairment including alcoholism and

drug addiction.

UPOR OLD BUSINESS AGENDA ITEM #1 3701 S. MAIN

SEPTEMBER 29TH , 2020

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There are many cases of local municipalities changing their zoning laws to eliminate current or

planned treatment centers. The United States District Court for the Southern District of Florida

heard a case involving the United States of America (plaintiff) vs City of Boca Raton

(defendant). This case came about after the city made amendments to their existing zoning laws.

In 2002, the Boca Raton City Council held a public hearing to regulate locating substance abuse

treatment facilities within the city. Residents appeared at the hearing for the proposed legislation

change to voice their opposition to Boca House for Men and Awakenings for Women, two

facilities that rent rooms and apartments to people in recovery.

The new ordinance not only put sanctions on where substance abuse treatment facilities (SATF) could be located it also required that existing SATFs must stop operations in residential areas within 18 months of the ordinance. This change to the zoning code resulted in discriminatory zoning policies, which violated the Fair Housing Act. The ruling had the support of the U.S. Justice Department.

In this situation no zoning changes are needed; however, one of the principles behind the Use

Permit on Review provision is that it allows the Commission to consider whether the use is

compatible with former uses and the surrounding uses. The facility, by the owner’s admission

needs repairs and he has stated that would be taken care of. The requested use though somewhat

like the former use as a nursing home appears to be a higher intensity use with more transient

users.

The question that remains is whether the intended use is compatible with the adjoining properties

and whether, given the existing zoning classification, this would be an appropriate use. The

school campus sits approximately 650 feet from this property with the closest school building

being 1200 feet plus or minus.

In the October 2018 meeting staff and the commission received several complaints, received a

petition of several pages with signatures and heard opinions at the meeting. During the August

25th, 2020 meeting some of the same opposition was heard.

RECOMMENDATION

Staff is continually looking at properties throughout the community that can be repurposed

instead of being torn down; however, staff questions how this property acquired an Industrial

zoning classification. The feasibility of this reopening as a nursing home is extremely low. Most

other uses do not fit with the structure layout. Concerns planning staff have include off-site

safety and possible capacity.

Previous letters of apposition are included in the commission packets.

Staff agrees with concerns expressed in both letters and has expressed that in the

recommendation. There are some uses that have no perfect or preferred location. In this situation

the Americans with Disabilities Act which prohibits discrimination based on disability may

trump those concerns. In addition, the Religious Land Use and Institutionalized Persons Act of

2000 along with the Fair Housing Act prohibits municipalities from making land use or zoning

UPOR OLD BUSINESS AGENDA ITEM #1 3701 S. MAIN

SEPTEMBER 29TH , 2020

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decisions or implementing land use policies that exclude or otherwise discriminate against

individuals with disabilities. An example would be an ordinance or decision prohibiting housing

for persons with disabilities or a specific type of disability, such as mental illness, from locating

in a particular area, while allowing other groups of unrelated individuals to live together in that

area. What the commission should consider in this instance is the impact on the area and whether

they would approve a similar request absent the disability issue.

With that information staff will recommend approval with the following conditions:

1. Off-site safety be addressed

2. Limit capacity of beds (Should applicant see that there is a need for more capacity they

can file an additional UPOR application with the Planning Commission which at that

time can review existing conditions and determine the impact that increase may create.

3. Meet all building and fire codes before issuance of a certificate of occupancy.

4. Should issues or concerns about the operation of the facility and / or the safety of the

surrounding properties arise, the Planning Commission shall maintain the right to

review the application and amend or revoke its approval.

UPOR OLD BUSINESS AGENDA ITEM #1 3701 S. MAIN

SEPTEMBER 29TH , 2020

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3701 S. Main

3701 S. Main UPOR

Behavioral Health Hospital

UPOR OLD BUSINESS AGENDA ITEM #1 3701 S. MAIN

SEPTEMBER 29TH , 2020

5

3701 S. Main UPOR

Behavioral Health Hospital

August 2020

Business Plan

JaMarcus Joseph AZURE BEHAVIORAL HEALTHCARE 501-779-8956

AIMINGFORHEAVEN@GMAIL.COM

CONFIDENTIAL

pg. 1

Table of Contents Executive Summary ............................................................................................................................................... 2 Business Description .............................................................................................................................................. 3

Mission Statement..................................................................................................................................................... 3 Purpose ...................................................................................................................................................................... 3 Recent Legislature ..................................................................................................................................................... 3

Product Service Description ................................................................................................................................... 4 Guiding Principles ...................................................................................................................................................... 4 Services Provided ....................................................................................................................................................... 5

Marketing Plan ...................................................................................................................................................... 6 Target Market ........................................................................................................................................................... 6 National Inpatient Mental Healthcare ...................................................................................................................... 6 Local Inpatient Mental Healthcare ............................................................................................................................ 7 Position: ..................................................................................................................................................................... 8 Marketing Tools: ....................................................................................................................................................... 8

Social Networks .................................................................................................................................................... 8 Traditional marketing tools (TV and Radio ads, advertising in printing media) .................................................... 8 Search Engine Optimization .................................................................................................................................. 8 Google Adwords .................................................................................................................................................... 9 Offline industry marketing tools ........................................................................................................................... 9 Website Design ..................................................................................................................................................... 9

Location ................................................................................................................................................................... 10 Renovation/Construction Estimate ......................................................................................................................... 10 Pricing ...................................................................................................................................................................... 12 Promotion ................................................................................................................................................................ 12 Physical Distribution ................................................................................................................................................ 12

OPERATIONAL/MANAGEMENT PLAN .................................................................................................................. 13 Regulations, Licensing, and Accreditation ............................................................................................................... 13 Financial Plan .......................................................................................................................................................... 14

Assumptions........................................................................................................... Error! Bookmark not defined. Sources and Uses of Funds .................................................................................... Error! Bookmark not defined. Payor Reimbursement Schedule ......................................................................................................................... 14 10 YEAR ANALYSIS .................................................................................................. Error! Bookmark not defined. Year 1 ..................................................................................................................... Error! Bookmark not defined. Year 2 ..................................................................................................................... Error! Bookmark not defined. Year 3 ..................................................................................................................... Error! Bookmark not defined. Year 4 ..................................................................................................................... Error! Bookmark not defined. Year 5 ..................................................................................................................... Error! Bookmark not defined. Cash Flows ............................................................................................................. Error! Bookmark not defined. Balance Sheet......................................................................................................... Error! Bookmark not defined.

Financing ................................................................................................................................................................. 15 Exit Strategy ............................................................................................................................................................ 15

Next steps ............................................................................................................................................................ 16 Appendix ............................................................................................................................................................. 17

pg. 2

EXECUTIVE SUMMARY

Azure will be a provider of treatment for mental health care and addiction in an inpatient

setting. Inpatient and day services will be trauma informed, gender sensitive, recovery based, age

Informed, culturally and linguistically competent, client centered, family driven, evidence

based/informed, cost effective, performance and outcome driven. Free mental health

assessments will be available 24/7.

The facility will be in Pine Bluff, Arkansas, which has a population of 42,984. It will serve the

middle to lower income communities of the southeastern Arkansas region consisting of 15

counties with an estimated population of over 280,000 as of 2017. The area’s median income is

$32,087. A local option will allow family members to participate in the care of their loved one.

Emergency rooms, doctor’s offices, and outpatient mental health clinics will be the main

referral sources. There will also be online marketing such as a website and social media page

maintaining educational information and offering support services.

The facility will seek accreditation by a national accrediting board, such as the Joint

Commission, in addition to licensing by the Arkansas Department of Health. Initially, there will be

12 beds expanding up to 103 depending on the final design approved by Azure’s Board of

Directors and state licensing committee. The facility will be self-managed by an administrative

team; CEO, COO, HIM, DON, CFO, etc.

Because actual costs would be based on multiple factors and decisions, this business plan

can only provide a range of the potential costs – not a specific estimate. The costs to open the

doors ranges from $4,824,122 to $13,682,740 for a new, green building. The range is dependent

upon multiple factors such as professional fees and the quality of the finishes, furnishings, and

equipment.

The facility will seek accreditation by The Joint Commission on Accreditation of Healthcare

Organizations (JCAHO). Payment will either be through commercial, Medicare, Medicaid, self-pay,

or another form of insurance. The per diem base rate will range from $800 - 1,000 per bed across

all programs. The average length of stay is 13 days. According to the reimbursement guide for

Jefferson County, Medicare reimburses $792.49 per average diem for that same period.

75% of licensed beds is the baseline for operational revenue. The employee expense is

directly related to the number of occupied beds. To cover operational expenses and make a

profit, the facility needs to maintain above a 23% average monthly occupancy.

pg. 3

BUSINESS DESCRIPTION

MISSION STATEMENT

Azure Behavioral Health will provide leadership and devote its

resources to facilitate effective prevention; quality treatment; and

meaningful recovery.

PURPOSE Azure Behavior Health Hospital is a startup Freestanding Inpatient Psychiatric Hospital

located at 3701 South Main Street in Pine Bluff, Arkansas. It will operate 24/7/365. The business

will be structured as a limited liability company (LLC).

Azure will be the first accredited freestanding psychiatric facility in the area. There are

only 18 inpatient psychiatric beds available within a 40-mile radius of the location. The first

facility accredited by JCAHO is 50 miles away. Patient care will be designed with local providers

to meet the specific needs of the community. Such as, Southeast Behavioral Health System, one

of the many outpatient providers in Jefferson County, who refers roughly 9% of their clientele

for inpatient treatment. Additionally, there is an insufficient amount of substance abuse centers

in the state.

RECENT LEGISLATURE The Mental Health Parity and Addiction Equity Act of 2008 provides for equal coverage

between psychiatric or mental health services and physical medical health services:

• Forbids employers and insurers from placing stricter limits on mental healthcare compared to other health conditions for group plans of 51 employees or more

• Provides incentives and requirements for employers to provide comparable coverage for mental health and physical health

• Projected to affect more than 113 million individuals

• Promotes positive awareness of mental health issues and environment

• Applicable to only Managed Medicaid enrollees based on a regulatory change made by CMS effective July 2016

• Removes the exclusion for patients between the ages of 21 and 64 in mental health and substance use disorder residential treatment facilities with more than 16 beds

The 21st Century Cures Act was signed into law on December 13, 2016.

• It reinforces current parity regulations

• create a new Assistant Secretary for Mental Health and Substance Use

• Provides $1 billion over 2 years for grants to states to supplement opioid abuse prevention and treatment activities

pg. 4

• HHS has announced $500 million of annual funding in 2017 and 2018

• Congress approved $3 billion for 2018 and $3 billion for 2019 to fund programs aimed at combating use of opioids

• Funds expected to go towards HHS’ five-point strategy, which includes improved access to prevention, treatment, and recovery services; more availability and distribution of overdose-reversing drugs; better public health data and reporting; more research on pain and addiction; and better practices for pain management

Legislative Tailwinds in the U.S. expected to further increase demand for behavioral health services. The Acts now require insurance companies to treat mental illness and dual diagnosis substance abuse as it would treat other biological health issues. This has created access to treatment at affordable costs and created an avenue to increase mental health awareness and destigmatize receiving the need for help.

PRODUCT SERVICE DESCRIPTION

GUIDING PRINCIPLES (adapted from the World Health Organization)

The action plan relies on six cross-cutting principles and approaches:

1. Universal health coverage: Regardless of age, sex, socioeconomic status, race, ethnicity or sexual orientation, and following the principle of equity, persons with mental disorders should be able to access, without the risk of impoverishing themselves, essential health and social services that enable them to achieve recovery and the highest attainable standard of health.

2. Human rights: Mental health strategies, actions and interventions for treatment, prevention and promotion must be compliant with the Convention on the Rights of Persons with Disabilities and other international and regional human rights instruments.

3. Evidence-based practice: Mental health strategies and interventions for treatment, prevention and promotion need to be based on scientific evidence and/or best practice, taking cultural considerations into account.

4. Life course approach: Policies, plans and services for mental health need to take account of health and social needs at all stages of the life course, including infancy, childhood, adolescence, adulthood and older age.

5. Multisectoral approach: A comprehensive and coordinated response for mental health requires partnership with multiple public sectors such as health, education, employment, judicial, housing, social and other relevant sectors as well as the private sector, as appropriate to the country situation.

6. Empowerment of persons with mental disorders and psychosocial disabilities: Persons with mental disorders and psychosocial disabilities should be empowered and involved in mental health advocacy, policy, planning, legislation, service provision, monitoring, research and evaluation.

pg. 5

SERVICES PROVIDED As an acute inpatient psychiatric facility, Azure Behavioral Health will provide a high

level of care in order to stabilize patients that are either a threat to themselves or to others. The

acute setting provides 24-hour observation, daily intervention and monitoring by psychiatrists.

Generally, due to shorter lengths of stay, the related higher patient turnover, and the special

security and health precautions required, acute inpatient psychiatric facilities have lower

average occupancy than residential treatment centers. Our facility will provide evaluation and

crisis stabilization of patients with severe psychiatric diagnoses through a medical delivery

model that incorporates structured and intensive medical and behavioral therapies with 24-hour

monitoring by a psychiatrist, psychiatric trained nurses, therapists and other direct care staff.

Lengths of stay for crisis stabilization and acute care range from three to five days and from five

to twelve days, respectively. We will provide a comprehensive continuum of care for people

with addictive disorders and co-occurring mental disorders. All programs will offer individualized

treatment in a supportive and nurturing environment built around the concept of recovery. The

programs will be designed by the Board of Directors according to community needs.

Prospective Programs:

a. Suicide Awareness and Prevention Education b. Active Servicemembers and Veteran Mental Health Program c. Inpatient Acute Care Psychiatric and Addictive Disease

d. Residential Treatment

e. Partial Hospitalization

f. Memory care and dementia

g. Postpartum Depression

h. Eating disorder

i. Civil commitment processing

j. Psychiatric and Addictive Disease Intensive Outpatient Services (TBD)

k. Educational and Vocational Skills

l. Life Skills Coaching and Mentoring

In the recovery-oriented treatment culture, emphasis is placed on maximizing hope,

meaning, and individual potential. Azure is committed to promoting recovery in all patients,

including those with the most severe mental illnesses. Mental health services will reflect and

advance the following fundamental principles of recovery.

Ten Fundamental Components of Recovery:

1. Self-direction

2. Individualized and person-centered

3. Empowerment

4. Holistic

5. Achievement of full potential

6. Strength-based

7. Peer support

8. Respect

9. Responsibility

pg. 6

According to Rehab.com, these are the

available drug and addiction facilities in

Arkansas.

10. Hope

It is common knowledge that a lack of education leads to a lack of adequate

communication which aides in keeping people stuck in negative cycles. We will have a computer

lab on the premises that will provide individualized education overseen by special education

teachers. We will partner with external programs to offer educational services after discharge.

MARKETING PLAN

TARGET MARKET Customers of Azure Behavioral Healthcare will be people experiencing mental health

problems and disorders in need of acute and subacute care. The programs will be grouped as

follows:

a. youth ages 5 –17

b. adults ages 18 – 55

c. seniors age 55 and over

Azure will focus on groups with middle and low income in Southeastern Arkansas

counties. The region consists of 15 counties with an estimated population of over 280,000 as of

2017 with a median income of $32,087. The combined population has declined an estimated

7.8% between 2010-2017. See licensed outpatient clinic attachment

• See UHH AR youth mental health facts pdf

• GeneralMHFacts-NAMI.pdf

NATIONAL INPATIENT MENTAL HEALTHCARE Arkansas has three major private behavioral health facility operators. Universal Health

Services (ticker: UHS) and Acadia Healthcare (ticker: ACHC) are publicly traded companies that

own/operate 4 and 7 facilities in the state. Woodridge Behavioral Center operates 3 facilities in

the states and is owned by a larger company out of Georgia.

Nationally, inpatient mental healthcare generates approximately $38 billion with

upward trends. In 2017, Universal Health Services’ Behavioral Health division served 468,000

patients accruing over 6.4 million patient days and added 465 inpatient beds to existing

pg. 7

facilities, admissions increased 2.4%, income increased 1.7%, and net income decreased to

21%.

In 2017, Acadia Healthcare acquired one facility and added 750 new beds (exclusive of

the acquisition), including 588 added to existing facilities and 162 added through the opening

of two de novo facilities and expect to add 800 more beds by end of 2018.

LOCAL INPATIENT MENTAL HEALTHCARE The Southeast Arkansas region has only general hospitals comprising of 34 psychiatric

beds available with no accredited specialty care facilities. The Division of Behavioral Health

Services operates Arkansas State Hospital which is the nearest psychiatric hospital to Pine Bluff.

Their clientele are long-term stays that are typically either forensic and/or have failed in other

programs. This isn’t the typical place to seek help for the average person experiencing an

episode of mental illness. The hospital recently underwent renovation.

Pinnacle Pointe Hospital is a JCAHO accredited psychiatric hospital located 55 miles

away in Little Rock. The hospital has 127 inpatient beds available for youth ages 5-17 need in

need of acute and subacute care. They recently added 3 beds to their facility. Due to location,

the facility can only grow vertically. UHS is parent company. The facility is 74,337 square feet.

The Bridgeway is a JCAHO accredited 113-bed psychiatric hospital located in Little Rock

as well. Their programs are available for people of all ages. They recently added 20 beds for a

new elderly unit. UHS is parent company. The facility is 69,442 square feet.

Conway Behavioral Health is a new construction project that was opened for business

January 2018. The announced project cost was $24 million for a 69,286 square foot building on

approximately 10 acres. It took 15 months from ground breaking October 6, 2016 to opening in

January 2018, a month behind schedule. The facility has 70 beds and serves people of all ages.

They have plans for bed expansion as 80 beds was the original announcement. Acadia is parent

company. Part of this facility is devoted to outpatient services.

From my experience working in both an unaccredited and accredited setting, there is a

significant difference in the training of the staff. The accredited facility seemed to be adapting

updated treatment philosophies. The biggest problem in both settings was burnt out staff due

to understaffing. When not properly experienced or overworked, staff errors were higher.

Another problem is the availability of beds. When I worked in White County, people were

dropped from an emergency room from as far as 3 hours away without a means to return home.

Referring facilities call down a list until they find an available bed.

The businesses are experiencing organic growth due to the acceptance of mental health

as a biological disease by insurance and the removal of the stigma surrounding the need for

psychiatric treatment. The bed need is increasing with more awareness and availability of

services. The cost per day is about the same but larger systems can demand high

reimbursement rates from the insurance companies.

pg. 8

POSITION: Azure will be better due to the proximity to the residents of the Southeastern region.

This will give better access to care and allow for families to actively participate in treatment. It

will better equip the family unit to thrive.

Azure will incorporate ownership management and emotional intelligence techniques

into employee training program as well as client treatment plan.

MARKETING TOOLS:

Social Networks

• Purpose: Social media will be used primarily as an attraction tool to create a

communication channel with potential clients, to highlight the latest news, mental

health services, programs, campaigns.

• Strategy: Facebook fan pages, Twitter and blogs will be created with minimum of once-

daily updates. This will have an added advantage of contributing to the overall SEO

effort as well.

• Keys to Success: The keys to a successful social media launch include the following:

✓ Successful and aggressive initial friending/following campaign

✓ Ability to create compelling blog content

✓ Ability to find time to interact with users via Twitter and Facebook

✓ To launch display and video marketing campaign targeting relevant keywords to

attract club-affiliated audience

Traditional marketing tools (TV and Radio ads, advertising in printing media)

• Purpose: Leverage the allowance of advertising to attract clients at a competitive CPA.

• Strategy: Build marketing campaign based on communication with potential clients

through advertising on local TV, Radio channels and printing newspapers like the….

• Keys to Success: The keys to success for a successful traditional marketing campaign will

include the following:

✓ Qualified/Well-trained marketing personnel

✓ Proactive and creative marketing personnel

✓ Availability of resources to implement traditional marketing tools

Search Engine Optimization

• Purpose: To secure top search engine placement in Google, Bing, Yahoo in order to

drive site traffic to website of the Project E. SEO maximizes the visibility of the website

via search engines.

pg. 9

• Strategy: A standard SEO strategy involving onsite optimization, link building and

content generation will be employed. Selection of an outsourced SEO firm will be

completed to manage this process.

• Keys to Success: The keys to a successful SEO launch include the following:

✓ Selection of a budget-appropriate but also upfront and effective SEO firm

✓ Focus on relevant keywords like “mental health services”

Google AdWords

• Purpose: To leverage the allowance of paid advertising on Google and to acquire direct

leads at a competitive CPA for Project E

• Strategy: A standard AdWords strategy of identifying potential keywords and then

whittling said keywords down to a profitable and manageable list, utilizing tests in ad

copy. Landing page design and acquisition offer will be employed.

• Keys to Success: The keys to a successful Google AdWords launch include the following:

✓ Successful acceptance by Google

✓ Ability to quickly test and to respond to ad copy, landing page copy and acquisition

offers

✓ Ability to track and to determine ROI and CPA of AdWords sign ups

Offline industry marketing tools

• Purpose: Publishing content and advertising in online medical and mental health

magazines and forums will enable Project E to reach a large audience of relevant

readers with an interest in mental health services.

• Strategy: Build marketing campaign based on communication with potential clients.

• Keys to Success: The keys to a successful traditional marketing campaign include the

following:

✓ Qualified/well-trained marketing personnel

✓ Proactive and creative marketing personnel

✓ Available resources for the implementation of traditional marketing tools

✓ Focus on relevant media resources

Website Design

We will model the marketing material after existing companies with the addition of a

unique identifier. Here is a list of websites of operating behavioral health facilities as examples:

• Azure Behavioral Healthcare - https://azurebehavioralhealthcare.com

• Conway Behavioral Health - https://www.conwaybh.com/

• The Bridgeway - https://thebridgeway.com/

• Pinnacle Pointe - https://pinnaclepointehospital.com/

• Rivendell Behavioral Health of Services of Arkansas -https://www.rivendellofarkansas.com/

• WoodRidge Behavioral Care - http://www.woodridgecare.com/

• Sheppard Pratt Health System - https://www.sheppardpratt.org/

• Austen Riggs Center – https://www.austenriggs.org/

• McLean Hospital - https://www.mcleanhospital.org/

• The Menninger Clinic - https://www.menningerclinic.com/

• HRI Hospital - https://hrihospital.com/

pg. 10

LOCATION Azure will offer services at 3701 South Main Street, Pine Bluff, Arkansas. The building is

approximately 61,974 square feet on nearly 6 acres. The building is divided into 7 different

patient rooms areas, several dayrooms, offices, and a full commercial kitchen area. According

to Design 1 there will be 116 initial beds. However, that may be changed according to the

location of the offices, consultation and education rooms, and nursing station(s). If there is a

need within the community, the facility once supported over 200 beds. The patient areas will be

divided into separate wings; Substance Abuse and Addiction (Wing 1), Youth (Wing 2 &3), Adults

18-55 (Wing 4 & 6), Adults 55 & over (Wing 5), “To be Determined” – Eating Disorder or Forensic

Triage (Wing 7).

RENOVATION/CONSTRUCTION ESTIMATE Using the announced cost of Conway Behavioral Health of around $346 per square foot,

the cost of construction would be approximately $21,467,194. The location was chosen due to

similarities in construction of the building as a nursing home with state licensing requirements

and the feasibility of renovation. It is also a small part of a larger effort to repurpose vacant

buildings to their best use as Pine Bluff rebuilds its image. Val Tilbury, President and CEO of East

Harding Construction gave a rough verbal estimated range of $80-100 per square foot or

$4,957,920 - $6,197,400 plus commercial kitchen equipment. However, Kent Taylor of

Cromwell Architects Engineers believes the construction only costs would be closer to $56.45

or $3,500,000. That would include new roof, electrical and networking, plumbing using PEX

piping, flooring, windows, stucco exterior, green technology, and patient safety and security

requirements. Essentially, a new building in a fraction of the time at a fraction of the cost with a

location easily accessible to the community. The building will be designed using the state

requirements and the latest edition of the Design Guide to Mental Health Facilities created by

the Office of Construction and Facilities Management within the Department of Veterans Affairs

(link to the guide book).

The budgeted value of the equipment ranges from $10-25 per square foot for a total

range of $620,000 upwards to $1.55m. That will include all necessary equipment with a life

expectancy of greater than 3 years, such as emergency kits, medication vaults, nursing supplies

computers, tablets, kitchen equipment, furnishings, transportation vehicles, lawn tools, etc.

pg. 11

22

Bed

s

14

Bed

s

pg. 12

PRICING The lack of transparency in pricing makes it challenging to estimate the competition’s

cost and reimbursement rates for a day of psychiatric inpatient treatment. The per diem base

rate will range from $800 - 1,000 per bed for all programs. Although, with the Board’s approval,

the CEO may adjust the base rate after adequate operational expenses are established. The

facility will be the only JACHO accredited facility within 50 miles. Initially, we will receive

referrals due to proximity and services offered. After operational success, our advantage will be

in the quality of staff and services rendered.

The federal base reimbursement rate for the Medicare and Medicaid program is set by

the federal government. There is detail material available on the necessary qualifications of

reimbursement. The Medicare program requires a team dedicated to ensuring a potential

treatment qualifies for reimbursement. Following the formula, the average Medicare patient

under age 45 experiencing psychosis without any other co-occurring symptoms would average

$792.49 per diem over the 13-day average length of stay (ALOS).

Private and employer insurance reimburse at higher rates than programs overseen by

the government. However, based upon available records of local outpatient psychiatric clinics,

Azure will expect over 90% of clients to pay using the Medicare/Medicaid insurance program

PROMOTION Due to the need for a physician’s referral for reimbursement by insurance companies,

emergency rooms, outpatient psychiatric clinics, and doctors’ offices will be Azure’s primary

source of clients. A business development manager and assistant will oversee developing a

digital marketing campaign as well as physically visiting the region to inform potential referral

sources of the services offered. There will be a checks system in place to ensure adherence to

the strict anti-kickback laws. Legal consultation will also advise on advertisement directly to

insurance companies.

PHYSICAL DISTRIBUTION Customers come to us either voluntary or involuntary through referrals from outpatient

clinics, doctors, the police department, and emergency rooms. We will provide transportation

upon discharge when no one is available to provide a ride home. We will maintain a fund

specifically for patient and visitor transportation. Family is a vital part of the healing/recovery

process and must be properly equipped for the sustained success of the treatment plan.

(insert county map)

pg. 13

OPERATIONAL/MANAGEMENT PLAN

Azure will be governed by a multidisciplinary Board of Directors. The facility is “self-

managed” (i.e. CEO, CFO, Business Office, etc.) with oversight at the Board level, which will

decide the necessary administrative roles and the necessary qualifications. The Board will

choose a CEO. Together, they will build a unified management team.

Staff will establish a safe, therapeutic environment designed by an experienced network

of healthcare professionals, consisting of psychiatrists, physicians, nurses, social workers,

addiction professionals, suicide survivors, veterans, and peer support specialists. Management

will receive leadership training from the Dale Carnegie institute. The principles of “Extreme

Ownership” leadership and “Emotional Intelligence” will be incorporated in employee training

and patient treatment care plan.

The employee need ratio is in direct correlation to the number of licensed beds available. Based on the online information available for similar facilities, there will be a need for about 1.55 employee per bed. Once fully operational, there will be a need for about 165 full-time employees and about 35 part-time employees. The employee need will increase as the number of beds is increased or if a program with lower acuity patients requires more staff. There are 49 different job titles to provide direct patient care, supporting, and administrative functions of hospital operation.

Upper and middle management will receive a salary while everyone else will be receive hourly wages. Azure will contract with a third-party company to design and manage employee fringe benefits. The exact perimeters will be decided by the Board and the contracted company.

Initially, training will be by nationally accredited program trainers, such as “Handle With

Care” and “Verbal De-escalation”. Those trainees will create a training team that will conduct

the regularly scheduled trainings. Along with the state licensing required monthly continuing

education, Azure will train employees in personal development and financial management.

Through accounting and hospital billing management software, the Chief Financial

Officer and team will manage the finances. The finances will be audited/reviewed by an

independent third-party accounting firm.

Nurse charting and record keeping will be conducted 100% electronically within an

internal network saved on local hard drives. Azure will follow HIPPA guidelines for storing

patient information in the Cloud due to potential privacy violations pose by hacking threats.

Paper documentation will be available in case of malfunctions.

REGULATIONS, LICENSING, AND ACCREDITATION The business will need to register with the Secretary of State as an LLC and apply for a

business license from the city of Pine Bluff to do business in the city. The building will require

permission from the city’s planning commission to use the building as a psychiatric hospital.

Psychiatric patients are protected under the Americans with Disabilities Act. Since the building

once operated as a nursing home, to deny occupancy as a psychiatric hospital would violate

federal law. Once renovation is complete, the city and state licensing board will issue a

Certificate of Occupancy.

pg. 14

Arkansas State through the Department of Health has stringent licensing requirements

for healthcare facilities. Sections applicable to a psychiatric hospital comprise about 200 pages.

The applicable sections are: 1—24, 37, 43, 45—48, 52, 82. It covers everything from program

development to the types of allowable door hinges. There are various requirements from the

National Fire Protection Association (NFPA) standards. The Department of Health has engineers

on staff to ensure strict compliance.

Medicare also has an intensive 54-page enrollment application to receive a new

institutional providers number, along with the stipulations to be reimbursed for services.

Accreditation is a key factor in reimbursement rates and the private insurers that will

reimburse for services. Accreditation through The Joint Commission on Accreditation of

Healthcare Organizations is the highest form of accreditation within the industry. The

accreditation book is several hundred dollars and hiring a JACHO consulting firm is highly

recommended. JACHO Behavioral Healthcare

Changes to Federal and State hospital license, insurance requirements, and federal

mandates on insurance company policies will have the greatest regulatory impact on the

business. Any federal appeals or repeals or additions to The Mental Health Parity and Addiction

Equity Act of 2008 and The 21st Century Cures Act will also impact business operations.

FINANCIAL PLAN Prior to opening, the facility will incur start-up costs for the three to six months. Wage

expense based on occupancy.

The reserve is to update equipment and furnishing, along with replace any major

component during the holding period. Using the reserve properly, the building will always be in

like-new condition.

Payor Reimbursement Schedule

Days to Pay Current 30-90 90-150 >150 Total

Commercial 16.7% 9.4% 3.2% 6.9% 10.0%

Medicare 10.8% 2.3% 0.5% 1.1% 10.0%

Medicaid 21.2% 7.1% 2.5% 5.2% 78.0%

Self-Pay 3.2% 2.1% 1.4% 3.2% 1.0%

Other 1.7% 1.0% 0.2% 0.2% 1.0%

Total 53.6% 21.8% 8.0% 16.6% 100.0%

Reimbursement Schedule

pg. 15

FINANCING Psychiatric and Substance Abuse Hospitals (NAICSC 622210) with a gross of $38.5 million

or less are considered small businesses. Azure will seek a loan guaranteed by the Small Business

Administration. However, that will only cover up to $3.75 million of a $5 million loan.

The financing strategy is to advertise for equity and debt partners and permanent

financing through Relyance Bank or another SBA lender. Because Relyance is headquartered in

Pine Bluff, we will approach them first with the opportunity to help people find true healing and

create nearly 200 permanent jobs. If we are unable to raise capital through debt and equity, we

will seek a hard money loan (HML) for construction.

If traditional lending is unobtainable, other potential funding sources are private

lenders, equity investors, and the EB-5 Immigrant Investor Visa Program which awards 1

investor’s family an immigration visa with the opportunity to receive citizenship in exchange for

investing $900k - $1.8m, creating 10 permanent jobs for American citizens and eligible residents.

Pooling of funds is allowed. This project could support up to 16 different EB-5 investors.

The loan will be secured by real estate and newly purchased business equipment. The

requested loan proceeds will be used for city and state licensing, JACHO accreditation

preparation (may include hiring an accreditation consulting firm), property renovation,

furniture, vehicles, establish suppliers, employee training, business development, and as

operating expense reserves until accounts receivable (reimbursements) are enough to pay all

costs.

If financing is unavailable, the architect will divide the project into feasible phases

approved by the state licensing board. Once a unit becomes operational, its net proceeds will

slowly self-fund all future expansions for the entire hospital.

EXIT STRATEGY Option 1 Option 2 Option 3

Hold as a long-term asset, overseeing business operations as owner and Chairman of the Board

of Directors. Grow the business organically and by building same kind facilities in similar

markets, and acquisitions of existing same kind facilities and supplementary businesses, such as

outpatient clinics.

pg. 16

NEXT STEPS

1. Bring high-quality, affordably priced

mental health services to the market

2. To add value through close cooperation

with local providers

3. To build strategic, productive relationships

with partners

4. To build facilities for modern hospital

5. Build brand awareness

6. Implement innovative marketing strategy

7. Achieve synergistic effect throughout

entire range of provided services

8. Be cost-effective and efficient

9. Service and geographical development

10. Be socially responsible

1. To get all necessary licenses to provide mental

health services in Pine Bluff, Arkansas.

2. To recruit qualified local and international staff

3. To hire reliable construction company, architect

and service providers

4. To train staff continually

5. To cooperate with globally known hospitals,

sharing knowledge and best practices

6. To develop clinical programs

7. To introduce new services, for example,

telepsychiatry

8. To develop effective programs to retain

customers

9. To improve processes continuously

10. To initiate online and offline marketing campaigns

11. To outsource non-core activities to avoid

unnecessary costs

Management Summary –

Strategies/Objectives List of Actions

pg. 17

APPENDIX

pg. 18

ARKANSAS SALARY.COM RANGE (each position has link to position page)

Position Min Max Average Need Salary Totals Category

Admissions/Intake Specialist $ 38,650 50,420 44,810 4 $ 179,240 care

Certified Dietary Manager $ 42,000 58,800 49,000 1 $ 49,000 care

Charge Nurse $ 74,545 100,857 87,456 4 $ 349,824 care

Clinical Coordinator, Recovery Services $ 34,213 41,986 37,255 1 $ 37,255 care

Clinical Dietitian/Nutritionist $ 49,360 59,580 54,220 1 $ 54,220 care

Cook $ 27,702 35,310 31,228 3 $ 93,684 care

Inpatient Case Manager $ 39,401 65,535 50,370 11 $ 554,070 care

Case Management Manager $ 56,059 65,736 60,826 1 $ 60,826 care

Licensed Practical Nurse $ 43,231 53,226 47,542 8 $ 380,336 care

Licensed Substance Abuse Counselor $ 35,510 50,920 44,531 3 $ 133,593 care

Mental Health Technician $ 26,923 34,500 30,290 55 $ 1 ,665,950 care

Nutrition Assistant $ 29,550 39,960 34,660 1 $ 34,660 care

Occupational Therapist $ 70,270 83,578 76,714 3 $ 230,142 care

Pharmacist $ 95,443 111,683 103,393 1 $ 103,393 care

Pharmacist Technician II $ 31,289 39,033 35,006 1 $ 35,006 care

Program Manager/Nurse Manager $ 83,590 113,098 98,073 3 $ 294,219 care

Recreational Therapist $ 43,645 54,240 48,841 3 $ 146,523 care

Registered Nurse $ 59,658 73,650 65,237 45 $ 2 ,935,665 care

Speech - Language Pathologist $ 65,291 77,445 71,178 1 $ 71,178 care

Psychiatrist - Medical Director $ 209,900 258,900 230,500 1 $ 230,500 director

Assistant Director - Master's level $ 99,800 136,100 118,400 1 $ 118,400 director

Housekeeping $ 20,407 25,418 22,499 5 $ 112,495 house

Housekeeping Staff Supervisor $ 34,890 46,490 40,390 1 $ 40,390 house

Maintenance Worker $ 28,743 39,204 33,290 3 $ 99,870 house

Landscape and Grounds Tech $ 27,870 38,650 32,550 2 $ 65,100 house

Account Manager $ 65,656 85,326 75,287 2 $ 150,574 other

Accountant $ 49,854 60,863 55,099 1 $ 55,099 other

Accreditation Compliance Manager $ 66,660 96,020 80,780 1 $ 80,780 other

Administrative Assistant II $ 36,889 47,023 41,459 2 $ 82,918 other

Business Development $ 88,268 129,252 109,063 2 $ 218,126 other

Chief Executive Officer $ 528,516 851,021 684,466 1 $ 684,466 other

Chief Financial Officer $ 258,932 410,895 329,789 1 $ 329,789 other

Chief Information/Technology Officer $ 223,336 327,752 269,895 1 $ 269,895 other

Chief Operating Officer $ 323,052 524,052 414,876 1 $ 414,876 other

Director of Clinical Services $ 151,600 208,800 176,200 1 $ 176,200 other

Director of Nursing $ 178,790 243,290 209,190 1 $ 209,190 other

Director of Operations $ 60,266 77,462 68,567 1 $ 68,567 other

Executive Assistant $ 50,691 64,324 56,964 1 $ 56,964 other

Front Desk Receptionist $ 28,000 34,100 31,100 3 $ 93,300 other

Health Information Manager $ 91,075 123,428 106,173 1 $ 106,173 other

HR assistant $ 43,795 55,655 49,511 1 $ 49,511 other

Human Resources Manager $ 80,065 102,484 91,028 1 $ 91,028 other

Medical Claims and Billing Specialist $ 33,485 39,351 35,988 2 $ 71,976 other

Patient Care Associate $ 22,350 28,680 24,950 1 $ 24,950 other

Programmer $ 62,963 79,443 69,523 1 $ 69,523 other

Software Engineer $ 99,763 122,983 111,033 1 $ 111,033 other

MD - General Practitioner $ 157,610 205,360 178,940 1 $ 178,940 professional

Psychiatrist - Youth, Adults, Sub Abuse $ 177,733 221,877 198,347 3 $ 595,041 professional

Special Education Teacher $ 37,915 59,784 48,845 7 $ 335,402 teacher

Total job titles - 49 Employees - 200 $ 12 ,599 ,860 - annual salary

pg. 19

pg. 20

pg. 21

Rank County Population Median Income

Licensed IPP Beds

Substance Abuse Beds

Beds to Population

40 Arkansas County

17,967 $ 39,883

- - -

35 Ashley County

20,283 $ 38,069

8 - 2,535

59 Bradley County

10,864 $ 32,321

8 - 1,358

75 Calhoun County

5,247 $ 31,245

- - -

61 Chicot County

10,636 $ 25,188

- - -

68 Cleveland County

8,202 $ 38,060

- - -

71 Dallas County

7,393 $ 30,309

- - -

58 Desha County

11,764 $ 32,087

- - -

38 Drew County

18,547 $ 32,087

- - -

11 Jefferson County

69,115 $ 37,561

18 - 3,840

53 Lincoln County

13,646 $ 34,107

- - -

72 Monroe County

7,085 $ 28,075

- - -

28 Ouachita County

23,868 $ 32,032

- - -

37 Phillips County

18,572 $ 27,219

- - -

19 Union County

39,449 $ 39,349

- - -

282,638 $ 32,087

34 0 8,312.88

3701 South Main StreetPine Bluff, Arkansas Cell: 501-779-8956jamarcus@azurebehavioralhealthcare.comhttps://azurebehavioralhealthcare.com/

The Problem

There are only 18 licensed and ZERO accredited

inpatient psychiatric or substance abuse beds

within 50 miles of location.

Limited family involvement in treatment care planning decreases chances of long-

term treatment success.

Existing Facilities

CERTIFIED ARKANSAS PSYCHIATRIC INPATIENT FACILITIES

Market Overview

• Demographics: Pine Bluff and the southeastern Arkansas region consisting of 15

counties with an estimated population of over 280,000 as of 2017 with a median income

of $32,087.

• Economy: Unemployment rates indicate the economy is slowly stabilizing from

long-term decline for various reasons.

January 2014 – 10.2% November 2018 – 4.8%

The Solution

Unit 3 – Youth (22 beds)

Unit 7 – Eating Disorder or Forensic Triage (12 beds)

Unit 4 –Adult Women (13 beds)

Unit 1 – Substance Abuse (28 beds)

Unit 5 –Adult Men (12 beds)

Unit 6 –Geriatrics (18 beds)

Unit 2 –Youth

(12 beds)

Marketing

and Sales Branding through traditional and online avenues.

Referrals from Doctors, Emergency Rooms, and Outpatient Clinics

Management Team

Board of DirectorsChief Executive

OfficerMedical Director Director of Nursing

Chief Financial Officer

Director of Human Resources

Director of Business

Development

Director of Utilization

Director of Risk Management and

Compliance

Director of Health Information

Management

Director of Assessment and

Referral

Director of Clinical Services

Revenue Model

103 Beds

2,870 Admissions

37,595 Possible Patient Days

13.1 Average Length of Stay

25% Vacancy

3% Doubtful Accounts

68% Employee Expense

15% Operating Expense

Employee Need:

165 Full-time

35 part-time

$750 - $1,000 per diem

Depending upon the program and acuity

68,000 Gross Square FeetReplacement Cost: $346 / SF($23,528,000)

Land: About 5.5 acres. The parcel is owned free and clear.

Building Renovation: Experienced in psychiatric facility construction, East Harding Construction of Little Rock gave rough verbal quote of $80-100 / SF($5,440,000 to $6,800,000) – all inclusive

Hard Costs – Building Development

Investment

• $15,150,000 Line of Credit

• 6 Month Capital Raise

• No existing external investors

─ $120,000 - founder salary

─ $6,800,000 - Renovation

─ $1,876,360 – Furnishing and Equipment

─ $427,621 – Construction Fees and Stamp Duty

─ $112,250 – Loan Issuance Fees

─ $100,000 – Onboarding

─ $5,813,769 – 8-11 Months of Operating Expenses

Actions

To get all necessary licenses to provide

mental health services in Pine Bluff, Arkansas.

To hire reliable construction

company, architect and service providers

To recruit qualified local and national

staff

To train staff on ongoing basis

To cooperate with service providers,

sharing knowledge and best practices

To develop clinical programs

To introduce new services, for example,

telepsychiatry

To develop effective programs to retain

customers

To improve processes continuously

To initiate online and offline marketing

campaigns

To outsource non-core activities to

avoid unnecessary costs

Certificate of Occupancy

Appendix

OperatingCases

• To analyze this investment, we considered three operational scenarios: the Base Case, the Downside Case, and the Upside Case

• Primary Differences:

• Base Case: The business experiences high growth during Years 1 – 3, stabilizing the Occupancy Rate at 75%; revenue grows by 2%, while doubtful accounts and expenses grow at 3%. Accounts Receivables average 88 days.

• Downside Case: Slow growth in Years 1-5 so the Occupancy Rate averages 38%; doubtful accounts average 4% and expenses grow at 3%. Per diem rates increases 1% per year. Accounts Receivables averaging over 150 days.

• Upside Case: Rapid growth in Year 1 reaching 75% occupancy by yearend. Capacity remains steady at 91% all years following; revenue grows by 2%, doubtful accounts and expenses grow at 3.0%, Accounts Receivables average 60 days.

• Other Assumptions: Employee expense is proportional to the revenue. 13 Day average length of stay.

UPOR AGENDA ITEM #2 602 W. 73RD AVENUE

SEPTEMBER 29TH, 2020

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review Request (UPOR) to establish a garage

apartment at 602 West 73rd Avenue within a R-1, Residential zone.

APPLICANT: Pamela Nelson

ZONING AND LAND USES: R-1, Residential

ZONING: North: R-1, Residential LAND North: Vacant / wooded

South: R-1, Residential USE: South: S.F. Residence

East: R-1, Residential East: S.F. Residence

West: R-1, Residential West: S.F. Residence

REVIEW COMMENTS

Applicant requests approval to allow a garage apartment at 602 W. 73rd Avenue in

a R-1, Residential zone. In her statement, Ms. Nelson states that she is taking care

of her 84- year old mother at her residence and would like to be able to take care of

her handicapped sister on the same site. Paperwork submitted with the application

indicate that the sister has various medical issues and needs assistance.

Section 29-101(c)(8) lists Garage apartments when occupied by relatives. This

would be a relatively easy approval had the applicant followed proper procedures

and obtained permits. Ms. Nelson also continued construction after being

instructed otherwise. Nevertheless, a garage apartment for a relative may be

allowed by the Planning Commission should it not have an adverse effect on the

neighborhood.

RECOMMENDATION

Staff recommends approval with the following conditions:

1. All permits be obtained within seven (7) days;

2. The garage apartment and all other additions built without proper permits be

inspected within the next two weeks;

3. All required corrections, if any, be made and reinspected prior to issuance of

a certificate of occupancy;

4. The garage apartment be limited to immediate family members only and is

not to be used as rental property.

UPOR AGENDA ITEM #2 602 W. 73RD AVENUE

SEPTEMBER 29TH, 2020

602 W. 73rd

UPOR AGENDA ITEM #2 602 W. 73RD AVENUE

SEPTEMBER 29TH, 2020

Garage (Apt)

UPOR AGENDA ITEM #2 602 W. 73RD AVENUE

SEPTEMBER 29TH, 2020

Garage (Apt)

UPOR AGENDA ITEM #2 602 W. 73RD AVENUE

SEPTEMBER 29TH, 2020

Garage (Apt)

UPOR AGENDA ITEM #3 304 WEST 16TH AVENUE SEPTEMBER 29TH, 2020

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review Request (UPOR) to establish a shelter at 304

W. 6th Avenue within a R-3, Residential zone.

APPLICANT: Pine Bluff Economic and Community Development Department

ZONING AND LAND USES: R-3, Residential

ZONING: North: I-3, General Industrial LAND North: Vacant

South: I-3, General Industrial USE: South: Industrial (Bread Manu. – vacant)

East: I-3, General Industrial East: Residential

West: I-3, General Industrial West: County Jail / Detention Center

REVIEW COMMENTS

Applicant requests approval to establish a residential shelter at 304 W. 16th. The

structure in question has been a non-conforming 4-unit apartment complete with 4

individually sustained units. The area in question has been in a declining state;

however, offers some older homes that are well maintained.

Shelters are not specifically mentioned in the listing of approved uses; however,

some similar uses that appear to be a higher intensity such as boarding house are

listed a Use Permit on Review.

Applicant’s statement noted that all tenants will be vetted and registers with the

Economic Development Department.

RECOMMENDATION

Although this is called a shelter in the application, Planning staff feels it is

equivalent to the previous use as apartments. All tenants will be reviewed by a city

department it does not appear it will create transient traffic.

Staff recommends approval subject to building and fire department approval.

UPOR AGENDA ITEM #3 304 WEST 16TH AVENUE SEPTEMBER 29TH, 2020

Ch

est

nu

t

W. 16th

Harding

304 W. 16th

304 W. 16th

UPOR AGENDA ITEM #3 304 WEST 16TH AVENUE SEPTEMBER 29TH, 2020

UPOR AGENDA ITEM #4 503 EAST 2ND AVENUE

SEPTEMBER 29TH, 2020

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review Request (UPOR) to build a Coroner’s Office

at 503 East 2nd Avenue in a B-1, Neighborhood Business District.

APPLICANT: Jefferson County Buildings, LLC

ZONING AND LAND USES: B-1, Neighborhood Business District

ZONING: North: I-3, General Industrial LAND North: Vacant

South: I-3, General Industrial USE: South: Industrial (Bread Manu. – vacant)

East: I-3, General Industrial East: Residential

West: I-3, General Industrial West: County Jail / Detention Center

REVIEW COMMENTS

Applicant is requesting approval to build and operate a Coroner’s office at 503 E.

2nd Avenue in a B-1 zone. Staff was unable to locate any zone that specifically lists

“Coroner’s office”; therefore this application is being heard as a Use Permit on

Review for a couple of reasons with the first being the question of what category

best fits this use. The second reason would be the requirement that government

uses need to be transparent in their actions.

With the 2nd question being answered with the filing of this application, the first

question remains. The B-1 section of the code under UPOR lists several uses that

encapsulates this use such as: Hospital, Clinic, Nonprofit uses, public uses, and

undertaking establishments. Staff feels this list covers this request.

The location for this project is the NE corner of E. 2nd and Convention Center

Drive. West of this property is the Jail, south is the old Hoslum Bakery, east is

residential property and north is vacant property leading to the levee and Martha

Mitchell Expressway.

With Convention Center Drive being the primary access to the Convention Center

and Municipal complex the types of uses and their appearances could have an

impact. In this instance the design has the appearance of an office building which

would be compatible to the before mentioned uses.

The old Coroner’s site located at the corner of Main and Barraque appears to be

inconvenient and having limited accessibility.

UPOR AGENDA ITEM #4 503 EAST 2ND AVENUE

SEPTEMBER 29TH, 2020

RECOMMENDATION

Staff does not see any adverse impact and recommends approval.

I-3

I-3

Proposed Coroner’s Office site

Proposed Coroner’s Office site

UPOR AGENDA ITEM #4 503 EAST 2ND AVENUE

SEPTEMBER 29TH, 2020

View of NE corner 2nd and Barraque (Site) View of property south of site (SE corner)

View of NW corner 2nd and Barraque (west of site) View of property on SW corner

UPOR AGENDA ITEM #5 3801 S. HICKORY STREET

SEPTEMBER 29TH, 2020

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review Request (UPOR) to build a Health

Department Clinic at 3801 S. Hickory within a B-1, Neighborhood

Business zone.

APPLICANT: Jefferson County Buildings, LLC

ZONING AND LAND USES: B-1, Neighborhood Business District

ZONING: North: R-1, Residential LAND North: Residential

South: B-1, Neighborhood Bus. USE: South: Medical Facility

East: B-1, Neighborhood Bus. East: Walking trail

West: B-1, Neighborhood Bus. West: Medical clinic

REVIEW COMMENTS

Applicant requests approval to build and operate a Health Department Clinic in a

B-1, Neighborhood Business zone. Clinics are listed as Use Permit on Review

request in this zone.

The location is north of the Professional Building on Jefferson Regional Medical

Center hospital property. West of this site is a group of doctor’s offices and clinics

while east is the hospital’s walking trail. The property abuts the Eden Park Drain to

the north with residential beyond that drain.

The current Health Department is located off Rike Drive and according to reports

needs substantial repair. Moving the Health Department to this site would further

accentuate a concept identified during the Comprehensive Plan process of creating

an identifiable Medical District.

The proximity to Eden Park Drain is of concern; however, if built to current

standards in areas in or near flood hazard areas it should relieve this issue.

RECOMMENDATION

Planning staff recommends approval.

UPOR AGENDA ITEM #5 3801 S. HICKORY STREET

SEPTEMBER 29TH, 2020

Proposed Health Department Clinic Site

Proposed Health Department Clinic Site

UPOR AGENDA ITEM #5 3801 S. HICKORY STREET

SEPTEMBER 29TH, 2020

View looking northeast from medical clinics

View southeast over Eden Park Drain

View east toward walking trail

UPOR AGENDA ITEM #6 114 STATE STREET

SEPTEMBER 29TH, 2020

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Use Permit on Review Request (UPOR) to build a Veterans Service

Building at 114 State Street in a B-5, Commercial zone.

APPLICANT: Jefferson County Buildings, LLC

ZONING AND LAND USES: B-5, Central Business District

ZONING: North: B-5, Central Business LAND North: Parking lot

South: B-5, Central Business USE: South: Parking lot / commercial

East: B-5, Central Business East: Industrial / Commercial facility

West: B-5, Central Business West: Commercial

REVIEW COMMENTS

Applicant requests approval to build a Veterans Service Building at 114 S. State

Street. The use meets the permitted use requirements of the B-5, Central Business

District; however, to provide transparency in governmental operations the fact that

it is a government building requires the request to be heard by the Planning

Commission as a Use Permit on Review.

RECOMMENDATION

Staff feels the proposal will be a welcome addition and aid in the redevelopment of

the downtown area and eventually result in the removal of the metal storage

containers that do not meet city code.

Staff recommends approval.

UPOR AGENDA ITEM #6 114 STATE STREET

SEPTEMBER 29TH, 2020

Proposed site of Veterans Affairs Bldg.

Proposed site of Veterans Affairs Bldg.

UPOR AGENDA ITEM #6 114 STATE STREET

SEPTEMBER 29TH, 2020

Proposed site of new Veterans Affairs Building

Existing Veterans Affairs Office 105 Main

ALLEY CLOSING AGENDA ITEM #7 ALLEY WEST OF 6810 DOLLQRWAY ROAD

SEPTEMBER 29TH, 2020

This application comes before the Pine Bluff Planning Commission

RECOMMENDATION

TO THE

PINE BLUFF PLANNING COMMISSION

SUBJECT: Request to close a portion of an alley adjacent to 6810 Dollarway Road.

APPLICANT: Fanta Burnley

ZONING AND LAND USES: B-3, Highway Commercial

ZONING: North: B-3, Hwy Comm. LAND North: Vacant South: B-3, Hwy Comm. USE: South: Apartments East: B-3, Hwy Comm. East: Vacant West: B-3, Hwy Comm. West: Commercial

REVIEW COMMENTS

Applicant requests approval to close a portion of the north-south alley located behind their

property at 6810 Dollarway Road. Planning staff has difficulty recommending approval of partial

closing whether it is a street or an alley. In this instance applicant gives no reason other than

“they want it closed”. In review, the alley extends approximately 789 feet northwesterly off

Cherokee Lane and is platted 24 feet wide. The alley does not extend any farther in either

direction. In the photo provided in this review electrical service is located within the alley.

Historically, alleys were provided for services such as utilities and even garbage pickup. Recent

platting policies eliminate alleys and replace them with utility and drainage easements. The main

difference is that as an alley the property is not taxed but as an easement property becomes a

portion of the property owners taxable parcel.

RECOMMENDATION

Because the alley has a limited basis, staff recommends approval of the closure of 137.48 feet

extending northwest off Cherokee Lane or more concisely that portion of the alley located

adjacent to lots 9 and 10 of Block 1 Henslee Heights Addition, subject to a 24-foot utility

easement being maintained.

ALLEY CLOSING AGENDA ITEM #7 ALLEY WEST OF 6810 DOLLQRWAY ROAD

SEPTEMBER 29TH, 2020

Proposed alley closing

Proposed alley closing

ALLEY CLOSING AGENDA ITEM #7 ALLEY WEST OF 6810 DOLLQRWAY ROAD

SEPTEMBER 29TH, 2020

Cherokee Lane

Proposed alley closing

Case No.

CITY OF PINE BLUFF, ARKANSAS

Street/ Alley Closing Application

Please fill out this form completely, supplying all necessary information and documentation to support your request. Your applicatio11 will not be placed 011 the Plannillg Commission agenda 1111til this information is provided.

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Telephone: ________ _ Name: k\_Q.h'OR-lb f->1.N:: n\12.1\ Name: __________ _ Address: \ :J-\ 1: >'hbQ.v- lAl .\i\\ \-\;\e,\.\g_� f\;'l, Telephone: ';::;D\ ·-:�>::f\-l£F11i :=?,

Address: _________ _ Telephone: _________ _

Brief description of request: "--t\f\exe✓ ·,c..., o�\"'\ <A-\\.e:,t *\v:t! 'i'\,\_v,S b..Q.}u.')-t.'Q\C) \�+ba+ I 0\.1.,":o );so T \ 0G .q\- -\-r> C- \ v'.$<2----- 'i + , 1

Does the prope1iy have restrictive covenants: 1\l C (If yes, attach a copy of covenants) Are there any special licenses for your business? f\/ O (Explain) ________ _ Has any zoning action /request been previously been made for this property: _(\)��o�-----­Additional infonnation/comments: ------------------------

PROPERTY OWNER(S) I AUTHORIZED AGENT CERTIFICAT[01 : I (We), the undersigned, hereby certify underpenalty of perjury that I (we) a re the owner(s) of the property that is the subject of this applic ation and I (we) have readthis application and consent to its filing. ([f signed by the authorized agent, a letter from each property owner must beprovided indicating that the agent is authorized to act on his/her behalf-)

r4vnJ;,,,:�Ulvh/) /l#_lc ff-It� 0;;1.c_"> IG/Y\✓�v�-3;� '-s-�ture ? Date Signature

tO\.[)tf-', buv r, J-Q,\,\ >I---. -e., v-, ...-.-<-- +\-.. ·'B v, ✓ "''*>-lPrinted Name \ Printed Name Owner ·,,/ or Authorized Agent ____ Owner ,/ or Authorized Agent ____ _ •

(clzeckone) (clzecko11e)

e: OmIDlSSIOll a e:

• SEEREVERSESIDEFORSUBMISSIONREOUIREMENTS •

It is our intention to assist you in making your project a success in a timely ma1111er. Please call if you have any questions or need assistance from the City of Pine Bluff Inspection & Zoning Department:, 200 E. 8 th Avenue, Pine Bluff,AR 71611 tel:(870)543-1845/ax:(870) 543-1854.

. -- --- . --- - - ------

I Ownership Descrintion --

Name: BURNLEY KENNETH R & FANTA

PO BOX 9843

---------- ---- --- -. -,-

--

Type:CV C.Vacant Taxable:N Notallow

Neigh:2 Owner:339924

PINE BLUFF AR 71611-9843 Status: 19 Tax Status: Subd.: HENS50 HENSLEE HTS ADD Block:001 Lot:009 S-T-R: 22-05-10 Acres:

T.D.: 273 27 WHITE HALL City:PINE BLUFF Location: 6810 DOLLARWAY RD Map:1

Legal: BLK 1, N 1/2 LOT 9

I Trend Street

�

lmpmviog

�

Cooc,ete Static Asphalt Declining ChatSeal New Gravel Old Dirt

I

Utilities Tonoaraohv

�

No Wale,

�

High No Sewer Low No Gas Rough No Electric Flat No Telephone Sloping

Buildinn Permit Record

Old PID:

Landscapinn

�Excelleol Good Average Poor

□None

Date Amount Purpose Note 6/12/2019

I Date 8/19/2013 11/15/1988 5/2/1980

Book 930 584 500

Page/Inst# 298-299483528

6/12/2019 LRW SLOGS SITTING HERE CARRIED ON

Ownershio Record Amount Type

34,000 WD 6,000

Land Record

Grantee BURNLEY KENNETH R & FANTA MESSINA CHARLES D & ROCKY MCKENZIE ROBERT L

Year Land Bldgs Total

Date 6/12/2019

Assessment Summarv I 2019 20% 2000 20 %

7,300 1,460 1,000 200

7,300 1,460 1,000 200

Review Record I Bi{y Reason Land Buildings Total

LR 7,300 7,300 6/12/2019 LRW SLOGS SITTING HERE CARRIED ON IADJOINING PROPERTY & SAME OWNER AS COM'L 6/29/2018 SDH RA 1,000 1,000

7/1/2013 SDH RA 1,000 1,000

7/1/2009 SDH RV 1,000 1,000

o/25/2008 RCP RA 1,000 1,000

7/19/2000 CH 1,000 1,000

I

Sub PT Size/Front Size Pri/Sec Depth Adj Rate Pri/Sec O Adj1 °/� --Adj2 oJo Value NC HS SF 5831.000 5831.000 .000 5.00 0 -75 7,289

0.000 0.00 46X125

62.7*93 Total: 7,300 A.C.T., Inc.

- - - - - - - - - - ,--

. - . . - - -· - -··

Ownershio Descriotion Name: BURNLEY KENNETH R & FANTA Type:CR C.Res

Taxable:N Notallow PO BOX 9843 Neigh:2

Owner:339924 PINE BLUFF AR 71611-9843 Status: 19 Tax Status:

Subd.: HENS50 HENSLEE HTS ADD Block:001 Lot:009 S-T-R:22-05-10 Acres:

T.D.: 273 27 WHITE HALL City:PINE BLUFF Location: 6810DOLLARWAY RD Map:1

Legal: BLK 1, S 1/2 LOT 9

I Trend Street

�

lmpmvlog

�

co,c,ete Static Asphalt Declining ChatSeal New Gravel Old Dirt

I

Utilities Toooaraohv � No Wate, rlgh

No Sewer Low No Gas Rough No Electric Flat No Telephone Sloping

Buildina Permit Record

Old PID:

Landscaoina �E>celle,t

Good Average Poor None

Date Amount Purpose Note 6/12/2019 5/4/2016 6/20/2011 I Date 8/19/2013 10/3/1990 1/1/1910

Book 930 604 241

Page/Inst# 298-29970857

6/12/2019 PER REAPP VISIT, 2ND FUD MOVED IN HERE 4/22/2016 LRW PU NEW FUD 2016 1/11/13 BW PU CLF6 2013

Ownershio Record Amount Type

34,000 WD 2,000

Grantee BURNLEY KENNETH R & FANTA MESSINA R J & CHARLES D DORTCH RUPERT E & WF

- . .

Assessment Summarv I Year 2019 20% 2018 20 % Land 7,300 1,460 1,000 200 Bldgs 8,400 1,680 2,950 590 Total 15,700 3,140 3,950 790

Review Record I Date Bi{.y Reason Land Buildin3s Total6/12/2019 LR 7,300 8,4 0 15,700 6/12/2019 PER REAPP VISIT, 2ND FUD MOVED IN HERE MISSED DURING MAINTENANCE, PU 2019 6/29/2018 SDH RA 1,000 2,950 3,950

15/4/2016 LRW 1,000 4/22/2016 LRW PU NEW FUD 2016

6,150 7,150

7/1/2013 SDH RA 1,000 900 1,900

1/11/2013 BEW FC 1,000 1,000 PU CLF6 REAPP HAS ALWAYS BEEN ON PROPERTY

7/1/2009 SDH RV 1,000 1,000

I

, Land Record PINE BLUFF SUBS\HENS50\930-28973-000-01�2 Sub PT Size/Front Size Pri/Sec Depth Adj Rate Pri/Sec O Adj1 % Adj2 % Value NC HS ,.. -

SF 5831.000 5831.000 .000 5.00 0 -75 7,289 0.000 0.00 46X125

I. -...

57_5•93 Total: 7,300 A.C.T., Inc.

I

-- -- - -·--·- --- ---

Owne,-,.,.., -escriotion --- .. . . ·- .. . .

.-- . - - --

Name: BURNLEY KENNETH R & FANTA Type:CI C.lmprTaxable:N Notallow

PO BOX 9843 Neigh:2 Owner:339924

PINE BLUFF AR 71611-9843 Status: Tax Status: Subd.: HENS50 HENSLEE HTS ADD Block:001 Lot:010 S-T-R:22-05-10 Acres:0.344

T.D.: 273 27 WHITE HALL City:PINE BLUFF Location: 6810DOLLARWAY RD Map:1

Legal: BLK 1, LOT 10 EXC HWY RM/ TRACT 21 AS DESC IN DEED BOOK Old PIO: 605 PAGE 340

Trend Street Utilities Toooaraohv Landscaoina �lmproviog

�

Cooccete Static Asphalt Declining ChatSeal New Gravel Old Dirt

�

No Water

�

High No Sewer Low No Gas Rough No Electric Flat No Telephone Sloping

�Excelleol Good Average Poor

□None

)ate Amount 7/30/2014 U22/2005

)ate 3/19/2013 10/17/1990 3/9/1983

Book 930 605 527

Buildina Permit Record Purpose Note

4/22/2016 LRW BLDG REMODELED & NEW BUSINESS FC Fire Call 2/15/05 LEP 4 X 16 PLYWOOD SIGN NO VALUE

Page/Inst# 298-299340 & 349079

Ownershio Record Amount Type

34,000 WD

12,000

Grantee BURNLEY KENNETH R & FANTA MESSINA R J & WF ET AL MESSINA R J & WF ET AL

Assessment Summarv l Year 2018 20% 2016 20 % Land 18,750 3,750 15,000 3,000 Bldgs 22,550 4,510 14,450 2,890 Total 41,300 8,260 29,450 5,890

Review Record l Date BK,,v Reason Land Buildin

5s Total

10/19/2018 LR 18,750 22,5 0 41,300 10/19/2018 LRW PER BOE CHANGE LAND VALUE FROM $5.00/SQ FT TO $1.25/SQ FT 9/25/2018 SDH RA 75,000 22,550 97,550 PER ACD REVALUE COMMERCIAL

6/29/2018 SDH RA 15,000 20,350 35,350

5/4/2016 LRW 15,000 14,450 29,450 14122/2016 LRW BLDG REMODELED AND NOW NEW BUSINESS "TAX SOLUTIONS" PU 2016 7/1/2013 SDH RA 15,000 2,150 17,150

7/1/2009 SDH RV 15,000 2,150 17,150

I

Land Record - --�

PINE BLUFF SUBS\HENS50\930-28974-000-01t1 iub PT Size/Front Size Pri/Sec Depth Adj Rate Pri/Sec O Adj1 % Adj2 %

SF 15000.000 15000.000 .000 5.00 0 -750.000 0.00

15.77X125 Total:

Value NC HS 18,750

115.77X125

18,750 A.C.T., Inc.

�';•��-:..-1 ...... -.. .r� ... !��-:<

RPID ·-· ·-· ---· .. -·--·· --- ---· - ---36274 P I: 930-28975-000

I Ownershio Description Name: BURNLEY KENNETH R & FANTA

PO BOX 9843

Jeff, --··-·--·· County Urban P rtv R, ·d Card - 2020

Type: RV Res .Vac Year Taxable:N Notallow Land

Neigh: HENS 50 Bldgs Owner:339924 Total

PINE BLUFF AR 71611-9843 Status: Tax Status: Subd.: HENS 50 HENSLEE HTS ADD Block:001 Lot:011 S-T-R:22-05-10 Acres: Date

T.D.: 273 27 WHITE HALL City: PINE BLUFF 6/29/2018

Location: 6810DOLLARWAY RD Map:1 Legal: BLK 1, LOT 11

I Trend Street

�

lmproviog

�

Coocrete Static Asphalt Declining ChatSeal New Gravel Old Dirt

Utilities ToPoaraPhv

�

No Water

r

igh No Sewer Low No Gas Rough No Electric Flat No Telephone Sloping

Buildina Permit Record

Old PIO:

Landscaoina �E,celleot

Good Average Poor

□None

Date Amount Purpose Note

I Date 8/19/2013 11/15/1988 1/1/1910

Book 930 584 000

Page/Inst# 298-2994830000

Ownership Record Amount Type

34,000WD 6,000

Land Record

Grantee BURNLEY KENNETH R & FANTA MESSINA CHARLES D & ROCKY MCKENZIE ROBERT L

Sub PT Size/Front Size Pri/Sec Depth Adj Rate Pri/Sec O Adj1 % Adj2 % HL 1.000 1.000 .000 2000.00

0. 000 0.00

7/1/2013

7/1/2009

16/25/2008

7/19/2000

5/24/2000

Value NC HS 2,000

40 FF

40 FF Total: 2,000

Card: 1 of 1 Assessment Summarv I

2000 20% 1996 20 % 2,000 400 3,600 720

2,000 400 3,600 720

Review Record I By Reason Land Buildings Total

SDH RA 2,000 2,000

SDH RA 2,000 2,000

SDH RV 2,000 2,000

RCP RA 2,000 2,000

CH 2,000 2,000

RA 3,000 3,000

I

A.C.T., Inc.

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2. Thlt property has a total a,,o of 36,627.5 squ<1n feet or 0,804 OCfH,

3. Th!s properly rs designated by Jefferson County l01t records os Parcel No. 930-28972-000 (Loi 9).

SURVEY FOR USE & BENEFIT OF:

KENNETH & rANTA BURNLEY 134 TIM8£R LANE

jWHITE HALL, ARKANSAS 71602

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