ARTHUR A. GIANELLI, NHCC PRESIDENT/CEO, ANNOUNCES THE SELECTION OF HEALTH CARE REIT, INC., AS THE DEVELOPER IN CONNECTION WITH THE DEVELOPMENT OF “2 VILLAGES” IN UNIONDALE AND EAST MEADOW
July 20, 2009
Contact: Shelley Lotenberg
(516) 572-6055
shelley@numc.edu
FOR IMMEDIATE RELEASE:
ARTHUR A. GIANELLI, NHCC PRESIDENT/CEO, ANNOUNCES THE SELECTION OF HEALTH CARE REIT, INC., AS THE DEVELOPER IN CONNECTION WITH THE DEVELOPMENT OF “2 VILLAGES” IN UNIONDALE AND EAST MEADOW
HEALTH CARE REIT, INC. HAS TREMENDOUS ACCESS TO FINANCING AND EXTENSIVE EXPERIENCE IN THE US IN DEVELOPING HEALTH CARE AND SENIOR LIVING FACILITIES
COMPRISING 85 ACRES, THE PROPOSED DEVELOPMENT WILL CREATE THOUSANDS OF PERMANENT JOBS, MEET HOUSING NEEDS OF SENIORS, PROVIDE MEDICAL OFFICE AND RESEARCH BUILDINGS, COMMUNITY FACILITIES, MAINTAIN OPEN SPACE – ALL WHILE IMPROVING HEALTH CARE FOR NASSAU COUNTY RESIDENTS
East Meadow, NY…….Following the review of six responses from national and local real estate firms to a Request for Proposal for the redevelopment of 85 acres of land in the heart of Nassau County, Arthur A. Gianelli, President/CEO of the Nassau Health Care Corporation, announced that the NHCC had selected the Tennessee based Health Care REIT, Inc., as the NHCC developer, in connection with the proposed redevelopment of 50 acres of the A. Holly Patterson Uniondale campus into the “Senior Village at Patterson” and 35 acres at the Nassau University Medical Center East Meadow campus into the “Village for Healthy Living.” The two proposed developments – each comprising one of the largest development opportunities in Nassau County – will help transform the NHCC’s land resources, revitalize the Long Island economy and improve the healthcare of Nassau’s residents.
“It is exciting and important to the future of the NHCC and to the economy of Long Island, that even during these economic downturns, we received extremely strong and competitive responses to our request for proposals,” said Gianelli. “Selecting Health Care REIT as our developer, a firm with tremendous experience and significant financing capabilities, signals the next exciting step in our redevelopment plans and is a strong indication that a market exists for the NHCC to further its mission and vision for these two properties, while providing a high quality of health care to the populations that we serve,” said Gianelli.
The elements of the agreement include several components for the redevelopment plans. Stage I of the engagement with Health Care REIT will encompass a fee-for-service process focused on the operational needs assessment, financial feasibility and appropriate scope and timing of specific projects on each campus, while stage II would be a project specific facility programming process, where planning fees would be capitalized in each “approved” project budget. Stage III would review the breadth of financing and ownership possibilities for each specific asset type under consideration, with Health Care REIT advising and assisting in securing the most appropriate option for each specific project. Stage IV and V would include pre-construction, construction and start-up services.
Robert Benrubi, counsel to the CEO added: “Health Care REIT, a firm clearly capable of seeing the NHCC vision of the two villages through, has tremendous access to financing with $1.15 billion in unsecured revolving credit, and significant experience in health care and senior living facilities, obtained by owning 632 properties in 39 states, having developed over 600 healthcare projects over thirty years and having managed 128 medical properties in 23 states throughout the nation.”
All development must be approved by NHCC board of directors. Specific projects will be phased in over time. For those projects approved by NHCC, Heath Care REIT, Inc. will have a Right of First Refusal to participate on a project-by-project basis. NHCC and Health Care REIT will mutually consent on any additional development partners selected for specific projects on each campus. NHCC and Health Care REIT will structure joint venture ownership for the various development projects, with market driven valuations for NHCC’s contribution of land towards pro rata ownership.
The conceptual plan for Uniondale’s Senior Village at Patterson includes a new 320-bed A. Holly Patterson nursing home; a 150-bed assisted living facility; a community health center; a 29-station dialysis center; 388 units of senior independent/congregate housing; 100,000 square feet of retail/office space; a community center and athletic field; and approximately four acres of open space and walking trails. The NHCC will continue to own and operate the new nursing home, community health center and dialysis center, but will joint venture with Health Care REIT on the rest of the development
For East Meadow’s Village for Healthy Living, the Health Care REIT will be NHCC’s joint venture partner for the development of medical office buildings for private physicians; an ambulatory surgery center; medical research; a wellness center; community and open space; and new housing for hospital residents and medical students. The NHCC contemplates developing 35 acres in the East Meadow campus by phasing in new construction to link the entire campus into one cohesive village, with upgrades in parking, walkways and roadways, and the creation of open community space.
While the East Meadow property will not require any zoning changes, the NHCC is seeking to rezone the Uniondale property with the Town of Hempstead, in a way that is consistent with the vision for the Senior Village at Patterson. The Environmental Impact Statement will be finished by 2010 and we will be undergoing a thorough process of architectural plans, expecting to break ground in the first quarter of 2011.
“This has been a long and fruitful process, with extensive reviews of all responses and with numerous meetings between NHCC and the Uniondale and East Meadow communities, in order to reach consensus for the “2 Villages” concept. During the next few months, we will continue this community dialogue and obtain input from both communities, and simultaneously will focus on financial feasibility, scope and timing for the projects. It is our goal, through the transformation of our land resources, to promote a healthy Nassau and provide the highest quality of healthcare to the populations that we serve,” concluded Gianelli.