before the arkansas health services permit agency … · before the arkansas health services permit...
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BEFORE THE ARKANSAS HEALTH SERVICES PERMIT AGENCY
In the Matter of:
Primrose of Rogers
File # HSPA (1455)15
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER
Findings of Fact
The applicant, Bentonville Retirement, L.L.C., d/b/a Primrose of Rogers is seeking a Permit of Approval
(POA) for the purpose of constructing a new seventy four (74) bed assisted living facility II (ALF II) located at
vicinity of 300-600 S Dodson Road, Rogers, AR (Benton County) to be called Primrose of Rogers. Projected
capital expenditure is $11,879,000.00. The Agency makes the following findings of fact:
NEED: There is eight (8) licensed assisted living facility; five (5) approved assisted living facility with total of
five hundred and ninety five (595) beds and four (4) residential care facilities in Benton County. The published
forecasted unmet need for Benton County, as stated in the April 2015 edition of the Health Services Permit
Agency Bed Need Book is 351. Need is met.
STAFFING: The applicant supplied a staff listing for the proposed facility, which meets or exceeds Arkansas
Office of Long Term Care requirements. The applicant states that recruitment and retention of quality staff is
carried out through their Primrose Retirement Communities website employment listings as well as via social
media and local job ads. They annually do a market analysis of wage and compensation packages in each region
to maintain their competitive levels of compensation for all employees. The Agency has no objective reason to
believe the proposed facility could not be adequately staffed. The proposed project can be adequately staffed
and operated when completed.
ECONOMIC FEASIBILITY: The total cost for this project is approximately $11.9 million of which 100%
will be financed with commercial loans up to the amount of $11.9 million. The financing is in place in
accordance with original application. The application provided a letter from Great Western Bank stating in good
favor for the proposed project. The application also provided a three year pro forma budget. With approximately
88,916 sq/ft and with a construction cost of $101 sq/ft the new construction project consists of a proposed
seventy four bed assisted living level II. The construction will consist of resident rooms, common sitting area,
dining space, recreation and activity space, offices, kitchen, laundry and storage room. The proposed project is
economically feasible.
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COST CONTAINMENT: The application states Primrose will enter the Rogers and Benton County,
Arkansas market under the private pay model. This means that Primrose does not collect Medicare or Medicaid
monies from the state or federal governments in order to provide housing and/or services for seniors. The
applicant also states that their design features of their physical structure and resident-centered programming
allow for socialization, wellness, and safety. Their design and programming strategies have been proven to help
either alleviate or decrease the severity of certain medical occurrences commonly seen among the senior
population.
Conclusions of Law
The application DOES SATISFY the statutory and regulatory requirements for the issuance of a Permit of
Approval (POA) for the purpose of constructing a new seventy four (74) assisted living level II facility in
Rogers, AR (Benton County).
ORDER
Based on the above Findings of Fact and Conclusions of Law, the Agency hereby orders that the Applicant be
GRANTED a Permit of Approval (POA). A Permit of Approval will be issued to Bentonville Retirement,
L.L.C., d/b/a Primrose of Rogers, for the purpose of constructing a new seventy four (74) bed assisted living
level II facility (ALF II) located at vicinity of 300-600 S Dodson Road, Rogers, AR, (Benton County) to be
called Primrose of Rogers. Projected capital expenditure is $11,879,000.00.
IT IS SO ORDERED THIS______ DAY OF JULY 2015
_____________________________________ TRACY L. STEELE
DIRECTOR, HEALTH SERVICES PERMIT AGENCY