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Erickson Retirement Communities

Development Proposal Follow Up

Given the level of community interest and questions related to Erickson Retirement Communities' development proposal, the Mayor and Board of Trustees requested this additional information and clarification of specific issues of concern.

Voting Impacts
While it is not possible to determine exactly how the future residents of the Erickson Retirement Campus will vote on various matters, it is possible to look at the voting results from similar facilities operated by Erickson Retirement Communities (Charlestown and Oak Crest Village in Baltimore, Maryland) and see how they compare with the general population.

Anticipated Impact on Local Taxing Districts
As outlined in the Fact Sheet section, approximately 14 percent of the campus (approximately 212 of the 1536 independent living units) will be located within Lincolnshire-Prairie View School District 103. With an average occupancy of 1.25 persons per unit, the retirement campus will create approximately 265 additional residents of voting age within School District 103's boundaries which presently has 6,962 registered voters.* Therefore, the retirement campus will comprise approximately 3.6 percent of the overall School District 103. The entire campus will be located in Adlai E. Stevenson School District 125, which currently has 32,693 registered voters.* The anticipated population generation of the retirement campus of 2,286 residents represents 6.5 percent of the total population served by School District 125.

It may also be helpful to examine precinct voting results within our own community on similar referendum issues. At present, the Village of Lincolnshire has 4,163 registered voters. According to the 2000 Census, the Village had 4,465 residents of voting age, 987 of whom were 65 years and over.

Impact on Median Home Value
Erickson Retirement Community relies upon a life-care contract financial model, which does not include the sale of real estate to the campus residents. Therefore, the average house sales price in Lincolnshire (presently estimated at $534,307) will not be impacted by the proposed Continuing Care Retirement Campus. The entire 92 acre campus will remain under single ownership-which translates to one single tax bill and the property is assessed as an overall campus, rather than unit by unit as with townhome or condominium developments. The residents of the campus will never receive a property tax bill and will likely be unaware of the significant tax revenues their campus provides to the larger community and school districts serving Lincolnshire.

Clarification of Impact to Village Revenues
Last month's flyer included a complete breakdown of the Fiscal and Economic Impact Analysis of the proposed Continuing Care Retirement Campus. Questions have surfaced regarding the Net Revenues the Village will realize, given that some of the fees and taxes are actually service-based or "pass-through" charges that do not benefit the Village directly. While it was previously stated that the Campus would generated $539,000 annually for the Village's Water and Sewer Fund, it is estimated that $356,000 of these dollars would be paid to the City of Highland Park to purchase water and to Lake County for sewerage disposal, as well as other operational costs. Therefore, the Net Revenues realized by the Village's Sewer and Water Fund annually would actually be $183,000. Fiscal impact to other Village funds remain unchanged from that which was previously presented:

Also, in last month's Financial Summary, the one-time fees category attributed Building Permit Fees, Building Review Fees and Site Plan Development Fees in calculating the $7,018,900 in Nonrecurring Revenue Sources. As these fees actually pay for services or are "passed-through" to consultants, they have been removed from the tabulation of one-time impact fees that would be associated with the Erickson Continuing Care Retirement Campus. Similarly, the remaining Impact Fees were re-examined to ensure they're accurately represented as Revenues to the Village-and not simply used to pay for services or additional administrative costs to the Village created by the Erickson development. In general, Annexation Impact Fees ($500/acre) and Acreage Impact Fees ($1,300) are assessed to new development within the Village limits which is designed to pay for costs incurred by the Village, area schools, fire district and library during the one year lag before the property generates real estate taxes for the applicable taxing districts. Given the overall size of this development project, it is not anticipated that there will be residents residing upon the Campus within the first year of construction. Therefore, the Impact Fees listed below represent the Net Nonrecurring Revenues associated with the development of the campus within the Village of Lincolnshire limits.

* Source: Lake County Clerk's Office. Figures current as of March 11, 2003.
** In 2001 Lake County's voting precinct boundaries were reconfigured. Therefore, two separate Voting District maps are available: 1995-2001 and 2001-present.