Campus Expansion Committee
May 2, 2013
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MORAVIAN MANOR
Campus Expansion Committee Meeting
May 2, 2013
Attendance
Present: Dick Stauffer, Frank Christoffel, III, Sam Hess, Dave Pusey, and David
Swartley.
Excused: Bruce Bucher, Jack Hartz, Dick Minnich, Kevin Glah, and Ken Stoudt.
Dick Stauffer called the meeting to order at 8:30 a.m. Sam Hess opened with
Prayer.
Approval of Minutes
The minutes from the February 4, 2013, combined Campus Expansion
Committee / Marketing Task Force meeting were approved.
Lititz Borough Text Amendment Process
The Lititz Borough Text Amendment Process took longer than anticipated and is
now complete. The majority of discussion revolved around the parking and setbacks in a Traditional Neighborhood Design. The goal of the Text Amendment
Process was to make the ordinance flexible enough for our conceptual plan. The
Conceptual Plan was approved by Lititz Borough Council on Tuesday, April 30
and has been forwarded to the Lancaster County Planning Commission.
Flexibility is considered with the mixed use buildings. Most likely, these
buildings will be built last. Retail options will be geared toward the population
residing in Warwick Woodlands (i.e., Barber Shop, Beauty Salon, Bank, small
Grocery). As the project progresses, and it is determined that retail or
commercial is not viable, the space can be built for residential.
Storm Water Management
Detention basins have been integrated throughout the scheme, noting there is a
concern about aggravating sink holes. A Storm Water Easement Agreement has
been reached and signed with the Warwick School District. In connection with
future development of Warwick Woodlands, we will replace the headwall with an
inlet on our property, connect to and install a new storm water pipe under West
Orange Street at a lower elevation, replace the headwall on the School District
Property with an inlet, and then extend the storm water wipe under and across
the School District Property to an existing inlet on their property. We will incur
the cost.
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May 2, 2013
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Marketing and Sales
Sawgrass Partners has been contracted to assist us with the marketing and sales
aspect of the project. Creating Results will assist with marketing creativity. Both
firms were interviewed by the Task Force on April 1, along with two additional
firms. Sawgrass Partners impressed us with their sales and marketing, however,
they admittedly would use a third party for the creative services, and work in
close alliance with them to develop all necessary materials. Creating Results
presented impressive creative marketing materials and websites, and admittedly
would use a third party for the sales and marketing piece. The Task Force
recommended we combine them. They accepted our proposal to work together.
With that comes more management oversight, on our part. Both David Swartley
and Nicole Michael are prepared to provide the necessary oversight. Agreements
have been signed with both.
A team meeting with all partners involved has been scheduled for May 8, 2013, to
discuss process and timeframe. In attendance will be Dick Minnich, Dick
Stauffer, and Frank Christoffell, III (Moravian Manor Board of Trustees); Alex
Piehl, RGS Associates; Greg Scott and Craig Kimmel, RLPS Associates, Kathy
East, Creating Results; Janice Maloney and Randalynn Kaye, Sawgrass Partners;
Mike Kivov, Kivov Consulting; Jeff Boland and Jamie Spencer, RKL; Kevin Glah,
Nicole Michael, and David Swartley.
It was noted that possible costs to market this project are $25,000 to $40,000
per unit.
Marketing Feasibility Study
A DRAFT Warwick Woodlands Market Feasibility Analysis was received from
Kivov Consulting and distributed to members of the Campus Expansion
Committee. The report is very thorough, noting, “Overall, we believe that the
measures of demand, and other dynamics of the site and market, are sufficiently
favorable to support the Warwick Woodlands concept and lay the foundation to
support a large-scale independent living expansion.”
The study includes definition of and analysis of our primary and secondary
market areas and their demographics; detailed analysis of our local competition;
pricing and positioning analysis, which examines and assesses the product
position and pricing for units at Moravian Manor and our local competition;
demand analysis focusing on the on the depth of and likeliness to support an
addition to the market; a brief overview of the current state of the long-term
care/retirement housing industry; conclusions and recommendations.
Mr. Kivov believes there are two potential strategic approaches to a “Phase 1” for
the entire development. The first, he terms a “Pioneer Phase” developing a small
phase of residences only, targeted to pioneer buyers, followed by additional
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May 2, 2013
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phases of development. The second, he terms a “Stand Alone” phase that would
include infrastructure (in terms of amenities, club house, etc., as well as
independent living residences. Whatever approach we take, it is important to be
committed, not vacillating, as the indecisiveness at the beginning of the
Hendricks Place project resulted in the loss of presales. He favors a larger “Stand
Alone Phase 1” to, increase marketability, establish a presence, and if the project
stalls, we would have a sustainable product.
Mr. Kivov recommends that we remain faithful to the traditional CCRC entrance
fee model. A hybrid adult/continuing care model runs the risk of confusing
consumers.
Financial Feasibility Study
Jeff Boland, Reinsel Kuntz Lesher, is in the process of completing the Warwick
Woodlands Financial Feasibility Study. Completion is targeted for the end of
May 2013. The topic of creating a separate corporation for developing Warwick
Woodlands will be addressed in the study. Concern is protecting our endowment
fund and current campus. David Swartely will discuss with legal counsel and Jeff
Boland the option of creating a separate corporation and their recommendation
from both the legal and financial side. Timing of creating a new corporation is
critical for plan processing.
Medical Office Building Update
Wohlsen Construction is still interested in being a corporate partner. Both
Ephrata Hospital and Wellspan Health are also still interested. We do not, yet,
have a written agreement with Ephrata Hospital.
Combined Campus Expansion and Marketing Committee Meetings:
It was decided that going forward the Campus Expansion Committee and
Marketing Committee would meet together, following the Marketing Committee
schedule, in order to have a cohesive understanding and united decision making
approach to present best practice feasible marketing and sales options, financial
options, phasing options, etc., to the Board of Trustees, for this to be a successful
project.
Adjournment: There being no further business, the meeting was adjourned.
Respectfully submitted,
Jennifer Shutt
Director of Administrative Services