Senior housing project moves ahead
Sorely needed affordable rental housing for senior citizens is a step closer to reality
The Key West Housing Authority (KWHA) told city commissioners on July 1 its evaluation committee had selected the winning bidder for a $16 million, 100-unit facility to be located at the entrance of the Poinciana Plaza Apartments, 1664 Dunlap Dr. Two companies submitted bids, Key West Senior Development, LLC, and Jackson Development Company/MIA Senior Living Solutions. Based on a ranking of several aspects in the two bids, Key West Senior Development was the best option, said Manuel Castillo, KWHA executive director.
“We’re in the discussion and negotiation process in, hopefully, getting some kind of agreement that we can reach,” Castillo told commissioners.
Hammering out an agreement with Key West Senior Development is only the first of many of the next steps that have to take place before ground can be broken on the project. Financing will be a critical objective, and then approvals must be received from a multitude of city planning and zoning officials.
The breadth and depth of services build into the project is still up in the air, as well. However, Key West Senior Development’s proposal called for a full meal plan, housekeeping services, laundry service, medication reminders and transportation to doctors’ appointments, shopping and other needs. A trained social director will also plan and manage exercise programs, shopping trips and in-house entertainment.
“The services that will be provided, we’re still negotiating,” Castillo said. “Anywhere from a licensed, full assisted living facility to a congregate care facility.”
The winning proposal calls for 100 units ranging from studios to two-bedroom apartments. Rent will be calculated on a needs-driven basis with a mix of low income and affordable rent formulas. Projected rents for a one-bedroom, one-bath unit range from $463 to $2,082 a month, depending on income levels. Projected rents for a studio unit range from $432 to $1,821. Rents on a two-bedroom, two bath apartment will range from $556 to $2,343.
Despite a large difference in projected cost estimates – Key West Senior Development’s estimate was $16.4 million compared to Jackson Development Company’s $29 million – Castillo said the bids were very close in terms of ranking, with Key West Senior Development edging out its competitor by a 90 to 84 final score.
“Where they differed largely was where you get into the financing. [Jackson Development Company] is an affordable housing developer who has his fees and profits included [in the bid]. With Key West Senior Development, there was no developer fee to speak of. Everything was to get the development done as economically as possible and then [they’ll] make a project in the operation of the facility, which is what I think we’re looking for,” Castillo said.
It is possible that the Key West Housing Authority could end up owning the facility and then contract its management and operation out to Key West Senior Development. Financing for the project would be a combination of private financing and low income housing tax credits, according to the winning bid.
City commissioners made no public comment on Castillo’s presentation. However, all of the commissioners and Mayor Craig Cates have previously said that creating more affordable housing in Key West is a top priority.
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