Planners approve senior living facility

The Sisters Planning Commission last week approved the site plan for the McKenzie Meadows Village (MMV) senior living facility consisting of 45 senior living units and 12 senior memory-care units. They also approved the modification of the previously approved MMV Master Plan, to accommodate the site plan's shifting of the location of buildings by more than 25 feet from where the buildings were originally approved to be located.

Sounds simple enough. But the June 18 public hearing on the matter was anything but routine.

A little history on the MMV project is needed to put the proceedings in context. According to local builder Curt Kallberg, one of the three local family partners who own the land, dreamed of providing housing for Sisters seniors 15 years ago when the land lay outside the Urban Growth Boundary. The Reed, Kallberg, and Willitts families sought and won a vote of the Sisters populace to bring the property inside the city limits.

The property was annexed into the city in 2006 and planning began for a development that would include a senior living facility, a one-acre park in the center of the development, low-income senior apartments, some single-family housing, cottages designed for independent seniors, and a clubhouse that would serve multiple purposes for the residents of both the development and the greater Sisters community. The southwest corner of the property was donated for the construction of the school-based health clinic, which now occupies that space.

Two of the stipulations attached to the property in 2009, when there was an annexation agreement for the senior living center, directed that one in every 10 housing units would have to be affordable housing and the senior living center had to be constructed and open for occupancy before any other construction could begin in the development. The master plan for the entire MMV was approved in 2010.

Negotiations took place with Yakima businessman Mark Adolf of Pinnacle Alliance Group to build the senior living center, and in 2011 Adolf's site plan was approved by the City. Due to Adolf's inability to secure financing for the project, the property owners granted repeated extensions on his contract, being assured that Adolf would successfully acquire the financing. After three years' delay due to lack of adequate finances, the contract with Adolf was terminated.

Bend resident Kevin Cox, owner of Ageia Health Services, who has built and successfully operates six senior living facilities, came forward with a proposal to build the MMV facility. In the meantime, Adolf applied to the City for permits to build his facility on the empty property adjacent to the post office, between Larch and Locust streets.

The Planning Commission easily and quickly approved Adolf's application. Despite having the green light for his project, Adolf has not yet begun construction.

Adolf informed The Nugget on June 12 that he has secured the land on which to build his proposed facility.

"Yes, we closed on the land," he said. "Deed is recorded."

Given Adolf's inability to secure financing when he was working with MMV, questions have been raised as to whether he has the financial backing to complete the project. In an interview with Nugget editor Jim Cornelius last month, Adolf identified some local individuals as investors, but he declined to identify his primary financial backers, saying that they are a private group that prefers to remain private.

"They don't want to be disclosed," he said. "Money's in the bank and that's the key thing."

He offered assurances that the project will get off the ground and will be built.

"We're ready to break ground as soon as we've got a schedule," he said last month.

In the meantime, Adolf has been deeply involved in the land-use process regarding the MMV project.

At last week's Planning Commission meeting, this issue came to a head when the approvals for MMV were on the agenda.

Darcy Reed, associate planner for the City, made the staff presentation to the commissioners, reviewing the master plan modification request and site plan for the new project. Changes were made to the original site plan to accommodate the new building proposed by Cox. Those changes involved access to the property from McKinney Butte, moving a number of parking spaces back behind the building, and the location of the building on the site.

Given the change of circumstances since the issuance of the original approval, staff believed it was desirable to approve the requested modifications. The building itself will be over 46,000 square feet, with 34 parking stalls, eight bike spaces, with trash/recycling enclosures.

Staff reported that after providing a Type 2 review, the project meets the criteria of code, several conditions have been added, and they recommended approval.

Cox spoke, informing the commissioners that he is ready to go. The state has given its approval and all he needs is the green light from them.

Because the site plan has changed, some modification of the master plan for the entire MMV project is necessary and therein lie the grounds for Adolf's contention that MMV should have to create an entirely new master plan. That would mean a costly and time-consuming effort.

Pinnacle's attorney, Michael Repucci of Boulder, Colorado, read into the record a multipage letter which he handed to the commissioners just before taking his place at the microphone.

He contended that MMV's application was deficient and should be denied. He also stated that the commissioners must follow the code. He asked for fair and equal treatment for his client and encouraged the commissioners to show no favoritism. It is not clear where any potential favoritism lies, given that Adolf's project has already received City approval.

Responding to an email query from The Nugget, Adolf wrote: "We do not have a problem with competition. We want fair and equal treatment for all, government transparency, no favoritism, and consistency in following established procedures and due process.

"We went the extra mile to be as you say "greenlighted with no difficulties or obstructions.' We actually had to do a lot to get the "greenlight' with impact studies, FAA, ODA, traffic study, master plan, added civil engineering, and so forth. All of that at a large financial cost to us and extended time.

"Mainly the difference is that we followed the Sisters Development Code with the heart to be in compliance from the start..."

Repucci contended that the changes to the MMV site plan constituted major modifications and that substantial adverse impacts to the surrounding property required a completely new master plan for the entire property.

"The application is faulty to the core," Repucci testified.

Besides a new master plan, he requested new impact studies be done.

One significant area of contention involved the use of different terminology in referring to the facility -assisted living facility, senior living center, housing with services, and memory care.

Applicant and opposition, of course, had differing views on the subject and each spent time bolstering their own case. Interpretation of terminology could have a bearing on whether the plan meets code.

Repucci warned the commissioners that if they approved the application, "My client will be deprived of his rights and will be entitled to an award of attorney fees and damages."

Raising the specter of a possible legal action elicited loud boos of disapproval from the audience.

Repucci asked that the hearing be continued to a date that will allow his client to gather further information.

Six members of the Lovegren family each spoke or provided written testimony in support of Repucci's testimony. Adolf had earlier identified Pam Lovegren as one of his local financial backers.

In closing comments, Kallberg pointed out that this is going to be a $13 million building constructed by Cox, who has a proven track record with his other six facilities.

"We are penalizing the seniors over terminology. We want something for our seniors so they don't have to leave Sisters," Kallberg said.

"What's the matter with competition?" he continued. "Both facilities would be great additions to the community."

The chamber erupted with applause when Kallberg said, "We don't have an attorney out of Colorado. We're trying... Come with us but don't just bash us... Let's get it on."

Commissioner Daryl Tewalt began the commission's deliberations by stating, "I don't see the merit in asking for a whole new master plan... I'm ready to approve it (the application)."

Commissioner Jack Nagel pointed out that Adolf had very easily received approval for his project, and he saw no merit to a threatened lawsuit.

Commissioner Bob Wright saw no problem, as recently passed state legislation guarantees that both facilities can be licensed as assisted living facilities. He concluded, "Let competition reign."

Commissioner Roy Dean was not comfortable approving the application due to the risk of a threatened lawsuit. He was concerned that if there was blanket approval that evening, it might open up the possibility of questions later. He encouraged MMV to come back with a new master plan for the entire property so as to not put themselves or the City at risk.

Commissioner Jeff Seymour, the newly chosen vice chair, stated he was "100 percent in favor of the project." He cautioned, however, there is a code that acts as a platform and framework for their decisions. He noted the failure of process within the City over the past 18 months.

"If we proceed in approving the application as written, we're going to be contributing to the problems (with process) of the last 18 months," he cautioned. "There is something bigger at work here than just this application."

He wondered if there were conditions and changes the commission could recommend as part of the

approval.

Commissioner Wright suggested it would be better if the applicant were to remove or change the contentious issues and bring it back.

Tewalt moved that the application be approved with conditions. Yes votes came from chairman David Gentry, Tewalt, Nagel and Wright. Seymour abstained, Dean voted no, and the application was approved.

One procedural glitch is sure to be noted. Despite the fact that Repucci asked for the hearing to be continued, Gentry gaveled it closed. Sisters City Attorney Steve Bryant was not present at the hearing to provide legal advice to the commissioners. Adolf's attorney has broached the argument that Bryant has a conflict of interest because his law firm Bryant Emerson, LLP, represents Ageia Health Services and Kevin Cox in disputes with Adolf and Pinnacle Alliance Group in regard to MMV.

While the planning commission's actions turn on a green light for the MMV project to move forward, it appears inevitable that more land use and legal procedure is on the horizon.

Nugget Newspaper editor Jim Cornelius contributed to this story.