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An Augustana Care Update Fall 2013

USDA Loan Approval: a Major Leap Forward

This fall, the Castle Peak Senior Care Community secured a $12 million loan through USDA Rural Development’s Community Facility Loan Program. Approval of the loan is a major leap forward for the project and all who have been working on it.

The Department of Agriculture, Rural Development Community Facilities loan is a key component in the project’s financial Current Progress – Castle Peak Senior Care Community structure. The $12 million loan at a 3.5% interest rate with a 40-year term will allow the project to be self-sustaining. The county and Augustana Care will contribute a combined $5.4 million to the 2013 Future Steps “We sized Castle Peak’s long term debt so the project in the form of subordinate debt, Project Design Project Development project’s cash flows would be able to cover its meaning these loans will only begin to receive Phase II (Current) Phase III debt payments. The low interest rate and long repayments when the project has surplus cash. Elders and caregivers have term will go a long way in ensuring the With an estimated total development cost of • Continue approval process • Continue capital campaign expressed a strong desire success of the project.” says Augustana Care’s $21.8 million, that leaves a $4.4 million for a care community to Chief Financial Officer Craig Kittelson. funding gap. • Procure construction contracts • Collect and evaluate bids serve older adults. The • Finalize design • Approve final bid and secure county selected Augustana Through the loan review process, the Castle Augustana Care has launched a capital contract Care to help meet the Peak project gained support from ’s campaign supported by local volunteers to • Determine bidding process needs of older adults in legislators. "This public-private partnership is secure these funds. “The USDA loan approval • Approve final financing • Negotiate primary and the area. As we continue to a great example of how rural development will provide the capital campaign with a huge documents secondary financing move forward, we will be resources can really benefit our local wave of momentum and will hopefully help us • Break ground using these newsletters to communities,” says Senator Michael Bennet. reach our goal of breaking ground in 2014,” • Submit preliminary applications communicate our progress “This capital will allow Eagle County and says Merv Lapin, chair of the capital campaign for Medicaid and Medicare • Collect pre-leasing and and keep you informed. approvals reservation deposits to Augustana Care to construct a much-needed committee. secure suites assisted living and skilled nursing facility to • Launch capital campaign www.castlepeak.org provide high quality care for seniors and prevent seniors from having to relocate.” Continued on next page...

The information presented here is proposed and provided for illustrative and conceptual purposes only. All elements are subject to change, refinement or elimination without notice. All plans are subject to governmental approvals. ...Continued from previous page

With the loan secured, the project’s design Castle Peak Senior Care Community will serve team will proceed with the final building an estimated 110 people annually at all income design and approval processes required by the levels, offering assisted living, memory care, Comparing Costs for Future Changes Town of Eagle and the Eagle Ranch Design skilled nursing and rehabilitation. For more Review Board. Augustana Care will continue information, visit www.castlepeak.org. to pursue licensing and certification from the We have been receiving questions about State of Colorado. assisted living costs at Castle Peak Senior Care Community and want to respond as soon as possible. Until final design and construction contract costs have been determined we are unable to set prices, but expect to share them Seeking New Options as Life Changes: Citizens Advisory in late spring, 2014. Meanwhile, we encourage you to compare current expenses to assisted Committee Member Barbara Spiker and Husband Jim living costs.

As Jim is 82 and Barbara close to 77, they are “How much would it cost if you or a parent looking for a smaller home with less need for needed someone else to be there round-the- It may be helpful to sit down with a financial maintenance. Unfortunately, most nearby town clock?” asks Elisabeth Borden, principal at the adviser to compare current expenses to homes have bedrooms on upper floors. That is Highland Group in Boulder, a consultant for assisted living costs. hard for the couple, who want housing on one seniors’ housing and care communities. “It’s level. one thing if someone helps you in your home Expenses listed below are all included in a few hours a week, but when you need assisted living at Castle Peak Senior Care “We obviously have to finish phase one of the assistance with medications or you’re not Community: Castle Peak community,” says Barbara. “But comfortable alone every night, the cost of we would be delighted if we could get the home care can quickly exceed what you’d pay • Mortgage/rent/assessment/monthly fee independent, phase two area going soon after in assisted living.” • Real estate taxes Jim and Barbara Spiker enjoy singing with we get phase one done. If it was ready now, we • Food grandchildren Caleb and Camille. The would have moved there.” Home health aide costs in Eagle County are • Utilities: gas, water, sewer, garbage removal about $35 an hour. Fees for round-the-clock couple is excited that the Castle Peak Senior • Laundry/weekly bed linen service Care Community will allow more people to Jim believes the scenic Eagle Ranch is a care may be somewhat reduced but are still • Weekly housekeeping/light cleaning stay in Eagle County. perfect location for the new care community. likely to be at least $25 hourly, according to “The elevation is lower in Eagle than it is in two area home health agencies. • Lawn, garden and outdoor maintenance Singletree residents Barbara and Jim Spiker's Avon, Edwards or Vail, even a thousand feet including landscaping 14 grandchildren love visiting the couple so less. That makes quite a difference for people.” Therefore, 10 hours of care a week might be • Building maintenance and repairs (painting, much, Jim calls their home "vacation central." $250 to $350, whereas 24 hours a day for seven plumbing, etc.) Yet, a recent knee replacement meant Jim In addition, the couple’s daughter is a days a week would cost between $2,400 and • Emergency call system would have problems navigating around a large substitute teacher and the school where she $5,880 a week (or more) in your home. • Entertainment, social and cultural programs home. often works is close to the care community site. • Gas/transportation “We can envision older adults reading to People living alone also find it harder to Jim's surgery and rehabilitation were in children,” says Barbara. “It will be good all the maintain social connections, which are known because Vail Valley has no rehab facility. "Our way around.” Like many others, she and Jim to increase health and longevity. For example, To work out current monthly health care system here is very good," says eagerly await the changes Castle Peak Senior a 2007 UCLA study showing loneliness costs, we have created an Barbara, "but we have great need here for Care Community will bring. decreases the efficiency of the body’s immune online calculator which can be transitional care." system, and a 2008 Harvard School of Public found at www.castlepeak.org. Health study shows an active social life slows memory loss. For detailed information about this project, contact Linda Venturoni at 970-468-6820 or visit www.castlepeak.org