Senior Communities in Maine

Evolution, Impact and Opportunity

Sea Coast Management Company

Develop, own & operate senior communitiesin Maine including:

OceanView at Falmouth (CCRC)

The Highlands of Topsham since (CCRC)

Highland Green (Active Adult)

Communities currently include over 400cottage homes, 200 independent living and100 assisted living apartments. Another 400homes are approved for development.

Almost 1,000 residents and 300 employees

Overview of Presentation

1. Evolution. Evolution of the marketplace overthe last 30 years

2. Impact. Community and Economic Impactof Senior Communities

3. Opportunity. Preparing for / attractingSenior Communities

Who is the customer?

WW II Generation Conservative, College

Educated WASPs

Responsible FinancialPlanners & Crises Driven

Solid FinancialBackground – savings,home equity & pensions

Many from outside ofMaine

Respectful

Baby Boomers Increasingly diverse in

every way

Culturally / Socially

Politically

Financially

Driven by lifestyle

Financial Reality

An increasing numberfrom Maine

Demanding

What are they looking for?

The World War II Generation

A safe, secure home in an attractive,quiet community

Relatively simple homes with modestfinishes

Access to the continuum of care --healthcare

1980’s Triplex Cottage at OceanView

1990’s Duplex Cottage at OceanView

1990’s Single Cottage at OceanView

A 1990’s Neighborhood at OceanView

What are they looking for?

The Baby-Boomers Lifestyle

Active & Healthy

Neighbors and involvement

Amenities The basics – complete maintenance free living

And more – cafes, pubs, pools, exercise facilities,conservations areas, trails, golf, etc.

The Continuum of Care They might not be as explicit about their need for the

continuum but they also strongly value it.

Recent Additions at OceanView

Lifestyle Amenities at Highland Green

What are they looking for?

The Baby-Boomers & Home Design

Larger homes with finished basements &second floors

Ability to customize

High end finishes / bells & whistles

Tall ceilings / lots of windows

Energy efficiency

New Cottage at OceanView

New Cottage at Highland Green

Interior Design

What are they looking for?

The Baby-Boomers & Community Design

Single family homes and/or the sense of a singlefamily home

Strong sense of community but privacy in their home

Neighborhoods and walkability

Community-Center and common areas

Exercise Facility

Conservation land / trails / sustainability – green space

Involvement in community design

Community Design at OceanView

Community Design at Highland Green

Green / Sustainability at Highland Green

What are they ALL looking for?

Assisted Living and the Continuum of Care

Want to stay as independent as possible foras long as possible. A senior community withsupport services allows them to do this.

Want to avoid any additional moves

Want to make sure their spouse is cared for

Want to avoid a nursing home

Hospitality v. Institutional

What are their options?

Senior’s Current Home

The number 1 desire of everyone is to remain intheir home for as long as possible.

This is the number 1 competitor for all seniorcommunities

Like home health care, there is a growing trendtoward providing soft, support services in thehome.

What are their options?

Independent Living –Cottages This has been and will

continue to be the fastestgrowing market segmentfor senior housing.

Key to successfuldevelopment is balancingthe customer’s desire forsize and amenities with amarketable price.

What are their options?

Independent Living –Multi-Unit Buildings An lower-priced / higher

density alternative tocottages in both rural andin town locations.

The key will be balancingdensity with a sense ofsingle-family living andprivacy.

These are not theduplexes and triplexes ofa decade ago.

What are their options?

Independent Living –Lodge or CongregateLiving Apartments Some possibility of this

product becomingobsolete with the shifttoward cottages.

Evolving into a new formof light assisted living

Older, smallerapartments becoming amore affordablecomponent of seniorliving communities.

What are their options?

Niche Products – Historic Homes

What are their options?

Affordable Senior Housing – New Construction

What are their options?

Affordable Senior Housing -- Historic Rehabilitation

What are their options? Standard Assisted Living

Yesterday’s nursing home Non-medical support services delivered in a non-medical

environment An essential component for a full service senior housing

community.

What are their options?

Memory Supported Assisted Living

Increasingly important product as thepercentage of seniors with some form ofmemory loss / dementia grows

Important to provide different products for thephysically challenged v. the memorychallenged

Increasingly specialized field

Available Senior Communities in Maine?

Project Sponsors Individual developers

Hospital sponsored projects

National companies

Financial Models Life Care

Rental Projects

Cooperative Ownership

Entrance Fee

Fee Simple (non-retirement community)

OceanView – Economic Development Impact

Senior communities are green and growing with hightaxes, low services and no impact on schools.

OceanView and its residents are the number #1taxpayer in Falmouth with an assessed value of over$32,000,000 and tax revenue of almost $400,000 in2008. Estimated to surpass $1M by 2020.

The residents of OceanView invest tens of millionsof dollars into the local community and itsbusinesses.

OceanView generates dozens of local permanentand temporary jobs both directly and with vendors.

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Topsham – Economic Development Impact

Original TIF Agreement Actual

Tax Revenue Projected Taxes Tax Revenue

1996 - 2005 2009 2009

$68,742 $1,256,124 $1,444,970

Original TIF Agreement Actual

Assessed Value Projected Value Assessed Value

1996 - 2005 2009 2009

$5,092,000 $63,900,000 $112,126,853

OceanView – Community Development Impact

An informal community center by openingregular events, services and facilities to thepublic.

Many of the residents of OceanView come fromFalmouth and/or their adult children live inFalmouth.

OceanView has several intergenerationalprograms with the Falmouth school system

OceanView and its residents help support a widevariety of Falmouth groups, organizations andinitiatives

TIF funds can be used to support a wide varietyof eligible community projects

OceanView – A Sustainable Community

It is located in the center of town on public sewer& water.

Connecting roads and a low volume of traffic. Walkable community with sidewalks and trails. Private community transportation programs and

access to public transportation. The lodge buildings are 2 ½ story inn-style

shingled buildings located in the center of thecommunity and the cottage homes are modest insize and clustered in attractive neighborhoods.

It includes historic preservation, land conservationand energy conservation.

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Attracting Senior Communities – Economic Incentives

TIF = “Tax Increment Financing”.

Communities use this tool to encourage aparticularly valuable type of development –senior communities are:

Green

Growing

Anti-sprawl

High taxes

Low services

No school impact

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Attracting Senior Communities – Economic Incentives

Developers use a TIF to:

Obtain better financing for a project

Overcome a major obstacle to development

Pay for major, long term infrastructure

Reduce the risk of a major expansion

Provide the confidence necessary to embarkon a major, multi-year project

Provide additional revenue source to weathereconomic downturns

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Attracting Senior Communities – Planning Incentives

1. Existing Ordinances v. Political Process

2. Large Planned Development v. StandardSubdivision

3. Certainty (reduce risk)

4. Density (improve financials)

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Attracting Senior Communities – Planning Incentives

Ordinances

Retirement Community Overlay District (Falmouth)

Adopted ordinances specifically designed to support /allow a retirement community

Flexible Use of Current Ordinances (Topsham)

Elderly Housing Ordinance (Topsham)

Good density / no net residential calculation

Density bonus for affordability

Contract Zoning

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Attracting Senior Communities – Planning Incentives

Affordable Senior Housing

Low Income Tax Credit via Maine State HousingQAP

Highly competitive process

Selection by Point on Application

Support of city or town crucial Approvals

Revitalization Zone

Affordable TIF

Public grant

Conclusion

Senior Living Communities are:

1. Green and growing

2. Strong economic / community impact

3. Municipal support and preparation key toattracting new projects and helping existingprojects expand