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home : business : business September 24, 2017

7/3/2017 1:17:00 PM
Action on senior-living facility
By Sue Stafford

It appears that the possibility of having a senior-living facility in Sisters came one step closer to reality last week when Sisters resident Peter Hoover brought the City a check for $323,378.72, to cover the System Development Charges of $245,473.95 and a remaining balance on permit fees of $77,904.77 for the project known as the Sisters Lodge.

The permits were to be ready to be picked up this week.

The property on which the facility will be built is bounded by Camp Polk Road, N. Larch Street, and East Barclay Drive, adjacent to the Sisters Post Office.

According to staff at City Hall, the owner of the project is still Pinnacle Alliance Group, headed by Mark Adolf of Yakima, Washington. Deschutes County property information lists Sisters Lodge Holdings LLC with Adolf's mailing address in Yakima.

Adolf was originally involved with the plans to build the Lodge at McKenzie Meadow Village (MMV) as a senior-living facility. He and the MMV owners parted company when Adolf was unable to secure financing for the project. When MMV secured another principal to build and run a senior facility, Adolf threw up multiple roadblocks to the project's progress by filing three different land-use appeals with the State.

During numerous City public hearings, Hoover and the Lovegren family were active supporters of Adolf.

During that same time period, Adolf filed plans and received approval for the Sisters Lodge project, but never proceeded with it. Also during part of the same time period, Adolf and his wife Anita encountered legal difficulties regarding the project.

Adolf, his wife, Pinnacle Alliance Group of Yakima, Washington, and Sisters Lodge Holdings agreed in early January to a consent order with the Washington Department of Financial Institutions Securities Division to resolve violations of the state's Securities Act that the department determined had been committed in Adolf's attempt to fund the facility in Sisters.

According to the consent order entered January 11, 2017, the Adolfs and their businesses sold securities - investor shares in the project - without proper registration and without their being registered as securities salespersons. Additionally, the order states that in their representation to investors they "made untrue statements of material fact or omitted to state material facts necessary to make the material facts ... not misleading."

In response to an inquiry from The Nugget regarding a possible timeframe for the project, Adolf responded:

"It is my understanding that a press release will be issued in the near future. In the interim, I am bound by confidentiality agreements that mandate no comments at this time."

Earlier in 2017, MMV was granted an amendment to their original annexation agreement with the City, stating that construction of an assisted-living facility was not required, so that the rest of the development could proceed.

MMV partner Bill Willitts was pleased when told about the apparent progress on the Sisters Lodge project. "I am really happy to hear that it appears the project will move forward. Sisters so badly needs a facility for our seniors," he said.

The general contractor on the project is listed as Vik Construction Company out of Eugene, where it was founded in 1948. This family-owned business has an extensive list of completed projects, including a number of projects over the past 15 years at St. Charles Medical Center totaling $75 million of work, including the 75,000-square- foot Heart Center and the 70,000-square-foot Neonatal Birthing Center.

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