Jon Monacelli, senior vice president of finance, planning and development for Spectrum Homecare met with the Tofte supervisors on Thursday, November 12, 2015 to discuss the possibility of building an assisted living facility in Tofte.
Spectrum Homecare is a privately owned, for profit company, said Monacelli, owned by Merle Sampson. The company has assisted living facilities in Aurora, Babbitt, Brainerd, Burnsville, Cook, Ely, Orr, Silver Bay and St. Cloud. Spectrum also offers Homecare in Brainerd, Duluth, Eveleth/Virginia, Grand Rapids, Twin Cities/Metro, Rochester, St. Cloud, and Willmar.
Town Board Chair Paul James asked Monacelli why Spectrum was interested in building in Tofte. Monacelli replied, “We are always interested in new opportunities. We have a facility close by in Silver Bay and this is a beautiful location for people to retire in.”
Supervisor Jeanne Larson said a study made about five years ago looked at the feasibility of establishing an assisted living facility in Tofte. She said, “The market study said it wouldn’t work here.”
She also noted the facility in Ely was built next to the hospital and the one in Cook was only a block from the hospital. The Spectrum center in Silver Bay was also built near the clinic, she said. Meanwhile, she noted, “Tofte is 25 miles away from the hospital/clinic in Grand Marais.”
“They [assisted living facilities] don’t have to be built next to a clinic or hospital to work,” Monacelli said. “What I want to know, is the town interested in having us explore this?”
“Generally the town is very interested,” said James. “It’s just a matter of whether or not you can make a profit here. Our community is aging so there is a need, but the availability of a workforce is an unknown.”
James also said the study that Larson was referring to makes for interesting reading. “But I wouldn’t put too much stock in it. Before building here I would do my own study. That’s my recommendation, anyway,” he said.
“I don’t know if this will be feasible or not, but this is the first step,” said Monacelli.
“Looking at the big picture,” said Larson, “What are your expectations from the community?”
“We look for land in exchange for some jobs. We also need some help applying for grants for infrastructure,” Monacelli said.
“Most communities you have built in have infrastructure in place—water and sewer—we don’t,” said Supervisor Jim King. “Your buildings were built on land, we build on rock. I just want you to know that.”
“We have a pretty good track record. Six of our facilities were built in the Taconite Relief District. We have run into rock before. It’s not pleasant. We spent $150,000 removing rock from one site before we could build,” he said.
When asked where the money comes from to pay to run these assisted living facilities, Monacelli answered, “On average, 50 to 60 percent of the people are private pay, with a base rate of $2,600 per month.”
But he added, “For people who need a lot of care, people that need to be in a dementia unit or something like that, the cost goes up.”
When asked how many jobs could be created, Monacelli replied, “On a 30-unit building, 25 full-time jobs are created.”
In Tofte, Monacelli said he thought a 24-unit secure building would probably suffice.
The board said there was township land near the Tofte housing development that could be made available. Monacelli said he would like to come back with the company owner next week to look at it. Both James and King said they would be available to hike through the brush and show them the location. Should a decision be made to build in Tofte, Monacelli said work would only take place in the spring season and it would take seven months to complete. “We don’t like to build in the winter,” he said.
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