BOA: July 6th 2017

ZONING BOARD OF APPEALS SPECIAL MEETING MINUTES
Mayfield Village
July 6, 2017

The Board of Appeals met in a Special Meeting session on Thurs, July 6, 2017 at 7:30 p.m. at the Mayfield Village Civic Center Conference Room. Chairman Prcela presided.

ROLL CALL

Present: Mr. Joseph Prcela (Chairman), Mr. Vetus Syracuse (Chairman Pro Tem), Mr. Stivo DiFranco, Mrs. Alexandra Jeanblanc, and Mr. John Michalko

Also Present: Mr. Joseph Diemert (Law Director), Mr. John Marrelli (Building Commissioner), Ms. Deborah Garbo (Secretary), Mr. Ron Wynne (Finance Director), Mr. Gino Carcioppolo (Fire Chief), and Mr. Rich Edelman (Police Chief)

CONSIDERATION OF MEETING MINUTESJune 20, 2017

Mrs. Jeanblanc, seconded by Mr. Michalko made a motion to approve the minutes of June 20, 2017 as amended.            

ROLL CALL

Ayes: Mr. Prcela, Mr. Syracuse, Mr. DiFranco, Mrs. Jeanblanc, Mr. Michalko
Nays: None                                      

Motion Carried. Minutes Approved As Amended.

RE-CONSIDERATION OF CASE #2017-03:

Applicant:

East Commons, Ltd 
Artis Senior Living, LLC
Sheldon Berns with Berns, Ockner & Greenberger, LLC

  1. A request for a Use Variance to permit Permanent Parcel No. 831-05-015, zoned in the Office-Laboratory District to be used as a Memory Care Assisted Living Facility.

Abutting Property Owners

300 NCB (Progressive Insurance Co.)
280 NCB (Governor’s Village)
290 NCB (Altercare Rehabilitation)
6576 White Rd. (Mt. Sinai Cemetery)
294 SOM Ctr Rd. (Charles Kinnaird)

OPEN PORTION:

Chairman Prcela called the special meeting of the Zoning Board of Appeals for Mayfield Village to order. Today we are reconsidering Case #2017-03. Applicant is East Commons, Ltd. requesting a USE Variance to permit PP #831-05-015 zoned in the office/laboratory district to be used as a Memory Care Facility.

Mr. Diemert said, Mr. Chairman if I could recommend that the two individuals who voted in favor of the variance that resulted in non-action because the majority wasn’t here, if one of those could move for reconsideration for the record, and a second, then you could have a majority vote and that will officially put it on the record.

RE-CONSIDERATION OF CASE #2017-03:

Mr. Syracuse, seconded by Mr. DiFranco made a motion to reconsider Case #2017-03.   

ROLL CALL

Ayes: Mr. Prcela, Mr. Syracuse, Mr. DiFranco, Mrs. Jeanblanc, Mr. Michalko       
Nays: None                                       

Motion Carried.

OATH:

Presentation by Sheldon Berns

Sheldon Berns, 3733 Park East Dr, Beachwood OH, Attorney for Applicant introduced himself. Thank you for holding this special meeting to reconsider this application. Some of what we’re going to present, those that were here heard before, but we have some new things. We hope when we’re all done we’ll have a vote by acclamation.

The property which is owned by East Commons consists of two parcels, one approximately 1.012 acres with frontage on SOM Ctr Rd but does not have access to SOM Ctr Rd because access is precluded by a Judgment Entry and it can’t be used for construction. The other parcel, almost 5 acres to the west is where ARTIS is planning to build its Memory Care Facility.

Sam Cannata who owns the property is here tonight. He’s here to describe his efforts over 7 years to find someone who would use the property for medical offices. He’s been unable to find a single user.

Roger Ritley is here tonight, he’s a Real Estate Appraiser and Property Economist who will tell you why Mr. Cannata was unable to find a user for his property for medical office. He’ll tell you why the present permitted uses of the property for office and laboratory research use are not economically viable. He’ll also describe to you the market demand for memory care facilities such as the one proposed and the reasons why the property should be used for a memory care facility.

There are two representatives from ARTIS Senior Living here. One is Don Feltman who is the President and Chief Executive Officer of ARTIS. Thomas Jones is their Real Estate Representative. They’re going to tell you about ARTIS’ philosophy and its intended use of the property and why this is an ideal location for a memory care facility.

Together with the information we submitted in our Application and the testimony you’ll hear tonight, you will find that we meet all of the requirements for a USE Variance. Your Application is very important, the factors for you to consider in determining “practical difficulty” standard. One question; 2) Will the property in question yield a reasonable return or can there be any economical beneficial use of the property without the variance? Our answer is no. The property has no viable economic use for the uses for which are permitted under your zoning because of its configuration, size and location.

I’m sure you all know that Duncan’s Law of Ohio does ensure property owners the right to use their property for a reasonable purpose. There is no reasonable purpose here. That alone is a pretty good reason for a variance. The Memory Care Facility is an absolute perfect use for this property. You couldn’t find one any better than that.

Mr. Berns concludes, I’m 84 years old. Many of my friends, former law partners, colleagues have been affected by Alzheimer’s and are in memory care facilities. My Father had Alzheimer’s for over 10 years. My Sister is in the throes of Alzheimer’s, she’ll be celebrating her 90th birthday. She’s managed to stay at home with the assistance of her Son, my nephew, your former Mayor Fred Carmen and his wife Karen. Without him, she wouldn’t have that luxury. Some things lawyers do have to do with economics, money, that kind of thing. This doesn’t, this has to do with life. Its importance is beyond description. We have two things here;

  1. The guy who can’t use his property for the couple uses that it’s zoned.
  2. Here is the perfect place to put a Memory Care Facility we desperately need.

With that, I’d like to call on Mr. Cannata.

Mr. Diemert states, Mr. Chairman, if it’s o.k., I think I made sure the absent members read the minutes so you don’t need to repeat all of it, but whatever you feel, I support.

East Commons, Ltd
Sam Cannata, Property Owner 

Sam Cannata, 30799 Pine Tree Rd. Unit #254, Cleveland, OH 44124, introduced himself. Thanks for having us. Many of you know me, many don’t. I’ve been at this for seven years with the property now. We all worked very diligently on this project to put together a development that we thought was going to be economically viable and good for the community. Coming out of the recession, we thought there was going to be a demand for lawyers, doctors and professional people to want to buy their own place, pull up to their suite and leave every day.

The reality is after seven years of marketing and working and getting through the challenging seller, we just haven’t been able to make it. Now we sit here with a piece of property that we all want to see a use there that will benefit not only myself but the community.

What I know and read about ARTIS, it could be a wonderful opportunity for this community, to have an asset like this, much like Altercare and Governor’s Village.

Mr. Cannata concludes, I appreciate you reconsidering us. If you have any questions on what we did to try and market the property, I’d welcome any questions.

Presentation by Roger Ritley, Appraiser and Property Economist 

Roger Ritley, MAI, CRE, ASA at 23875 Commerce Park Rd., Beachwood, OH, introduced himself. As I was reflecting on what happened at the last meeting how I presented to you, I too am enthusiastic about land use. My background is a little bit unique in the sense that you hear about an appraiser, and who is that? Somebody who looks at a house and tells you what it’s worth, a high rise apartment or an office building.

In my case I specialized very early. I have a very good education in regional economics. There’re all sorts of these little nitches and crevices that you never really see anybody that often emerge from those arcane areas. After I got done with my undergraduate and graduate work, I stayed focused on all of these things that drive society forward and how it uses its land use and how badly it’s created or destroyed.

I’m telling you that because in this particular instance, I cannot think of a better use for property in this kind of setting relative to the value that could be created with your permission to proceed with something that’s an ideal fit to this community at its present scale of resident to population.

Are there costs associated with it? Some, you probably could figure out the exact numbers, although I have my own set of numbers.

Mr. Ritley hands out and introduces the ‘2016 Drive Time Demographics’ chart (attached). I find that there’s a significant need for creation of this kind of thing, of space in your community to take care of the aging population. Using the chart, our property is located here, we have our 10, 20 & 30 minute drive times. I prefer those rather than people using radii. You may have seen studies using circles. This is much more sensitive to accessibility. When you think about how a work force functions, they’re coming to a place of work or they’re a population that wants to reside close to something that’s very important to them in their lives, where they’re more apt to spend a committed time in that location such as a family going to visit an aged family member who is in a facility that’s taking care of them or going to a place of work. When you go past a shopping center everybody’s got a supermarket nearby and there’s a couple of choices, very quick visits. This is a different kind of situation, relationship bound.

When I looked at this situation there’s a lot of numbers that you could toss in the air and grab each one of them, but they are very significant and there’s a trend that you could pick some of the opportunities here to really take care of the population. For example, looking at the populations for people over 65 there’re various numbers in here that correlate to each one of those bands that go out further and further in those 10 minute increments. Going out to 20 minutes, not 30 minutes, we found that there was a very ample reason to say that the market here needs to be served. It’s an economic result not only for the community but certainly for the ownership and you for the community with respect to how we take care of ourselves in terms of the general population and the cost of that.

For the longer term as population suffer these debilitations it’s going to grow very significantly. All the more reasons are out there for folks that happen to see how you might consider this phenomenon that’s going on as the baby boomers age out, and as longevity continues to increase, a very significant factor in this whole process. This smaller area here, how they establish themselves in a community with cost being prudent, to charging for their services and staffing. When you have quality organizations, obviously it’s going to cost more. That has a tendency to generate higher revenues for the community, but you’ll have to decide. 

When I go through these numbers in considering how these numbers all work out, in a 20 minute drive time you have about 6800 people who have incidences of Alzheimer’s in this area. You have 3460 or so population here. That population, you have more than 2000 people in the age 65 and up, that’s a very large number of people within a 20 minute drive time to this location who need services like this. What’s the ratio supply against that demand? Not everybody is going to go into one of these facilities. They will stay home for as long as they can. Not only is there no cure for this at the present time but it is a daunting miserable task and you need professional people to take care of this.

With respect to tax revenue, the Village can get a wonderful benefit out of this. You’ll have $1 million payroll, probably a project that’s $8 million to $10 million on site work that’ll be done, and about $300,000 in real estate taxes that will flow into the community at large, county, the schools, library system, the zoos and everybody else that’s gets to dip in there. About 65% will go to the school system.

Mr. Ritley concludes, the population with incidences of Alzheimer’s extending out over a 30 minute drive time from this location, having beds specifically for people who have Alzheimer’s or dementia is about 3%, not an exact number, but it’s so marginal, so small compared to the populations need that I could stand here comfortably and tell you that this is a hands down easy decision from that aspect alone. With respect to the 0 - 20 minute drive time in terms of drive times for family to go back and forth, you’re at 7%. So, either 97% or 93% of that population out there that still has a need. We could all stay home, but we can’t do it. When your spouse dies, what happens? With dementia, it’s a grand problem. That person, as they lose their perception of place in life, they set adrift.

Chairman Prcela asked, I believe what you’re saying is you feel strongly there’s a solid market for this?

Mr. Ritley replied, I do.

Presentation by Don Feltman, President & CEO ARTIS Senior Living 

Don Feltman introduced himself. I’ve had the privilege of serving as President and CEO of ARTIS Senior Living.

Mrs. Jeanblanc said, I didn’t know if this is all private. What percentage of the residents in other similar facilities are covered by insurance, specifically for these facilities? 

Mr. Feltman replied, in terms of our residents and the insurance, a number of them have long term care insurance. People of all ages as they get older consider that. A lot of them are actually purchasing it.

Mrs. Jeanblanc said, but not all long term care insurance policies cover this.

Mr. Feltman replied, not all of them but many of them do because it’s a lower cost than being in a Nursing Home. For long term care insurance it’s cheaper for them to fund an Assisted Living level for Medicare than a Skilled Nursing level for nursing care. A couple other factors to consider are if you’re a Veteran that served your country, the VA also pays a portion of the care. In addition to that, when it comes to dedicated Memory Care Communities, the IRS if you meet certain criteria for a fully dedicated community, it becomes 100% tax deductible. All those factors play in. Not just for our community, but any other Memory Care Community that would be in existence as well.

Chairman Prcela asked, I assume you’re looking at more than just this site in Northeast Ohio in terms of demographics?

Mr. Feltman replied, this is the one that we have under contract right now in Northeast Ohio. We have two operating in Cincinnati, also considering one in Columbus. I’m a Buckeye, grew up a few miles from here actually. To me, it’s pretty meaningful being home, near where I grew up.

Mr. Michalko asked, with all these places that you’ve done, how many are at full capacity?

Mr. Feltman replied, the ones that are open for more than 2 ½ years generally are running 85% to 95% occupancy. We have those that have been open at least three years running 95% to 100%.

Mr. Feltman states, ARTIS has been in existence for five years. Thomas and I used to work with another company where we essentially helped design back in 1993/94 dedicated Memory Care Assisted Living Communities. Before that my history goes back a long ways, I’ve been in long term care for 40 years. I started part time when I was in college for a company called Manor Care. We worked in the early 80’s with Johns Hopkins University in designing units in Skilled Nursing Communities where we found the term Alzheimer’s and the term dementia was not well known back then. The population was physically more capable of activity than the rest of the population but mentally they were disoriented. The rest of the population would be physically somewhat limited or impaired but mentally much sharper. So we worked with Johns Hopkins University to design a concept which created dementia units within our Nursing Homes. One of the components that we learned from Johns Hopkins in our own research and has been our experience since then is having outdoor areas for our residents to enjoy, for example an evening like today. Three fourths (¾) of the building we build is fenced, so this is a beautiful evening for residents to go outside, exercise, to enjoy the fresh air, the birds, and the sunshine. We found when we started the nursing homes back in the 80’s, that that was widely successful. Our residents were less agitated because the groups were segregated based on their needs. Also, our families were much happier in terms of the quality of service and the quality of life for our residents.

Mr. Feltman concludes, according to the Alzheimer’s Association, if you go on our website, today there’s a new case of Alzheimer’s every 66 seconds in the United States and it has accelerated. It’s accelerated because people are living longer and there’s more of us that are aging. The Alzheimer’s Association is projecting by the year 2050 there’ll be a new case every 33 seconds. It’s astronomically increasing. I’ll also say that there are over 30 different types of dementia, Alzheimer’s is the most prevalent. About 70% of the cases of dementia are Alzheimer’s but there are a number of different ones. Another thing because I think it’s helpful to understand the need is there, is an element called ‘early onset dementia’ for people under the age of 55 - 65. The Alzheimer’s Association doesn’t have a good handle on that. We think that there’s probably somewhere in the 200,000 to 400,000 of those people in the United States today. If you look at some of the European studies and some of the researchers that we deal with, there’s a thought that a lot of it has to do with those of you that are like me that are baby boomers, when we were in our late teens and early 20’s we did a lot of alcohol and drugs. There is a correlation, a belief that that destroyed our brain cells, that it helped cause early onset dementia. It’s not conclusive, but what we do know is it’s a fact that’s increasing. I use that information to tell my kids solely to scare them in thinking about this. Unfortunately my Mother and Mother-N-Law both died from dementia. For me it’s very personal. It’s an issue that’s not going away unfortunately with the billions of research worldwide. All we’ve been able to do is slow the progression of the disease. There seems to be multiple cause of agents, even if we isolate one, which I pray, I’d love to turn our communities into boutique general assisted living communities, but I don’t and the researchers don’t see it happening.

OPEN DISCUSSION:

  • Placement of a Loved One – Self Pay / Insurance Coverage

Mr. Michalko said, at the last meeting you explained to us it’s a for profit organization. The person coming in is assessed and if their money runs out they have to find another place.

Mr. Feltman replied, it’s not quite that simple, it may sound that way and there’s an element of truth here but let me explain the big picture. When someone is looking to place a loved one in our community we work with them in helping establish what resources are available and for how long. We look at several years’ worth of assets coupled in with long term care insurance, Veterans benefit and tax deductibility. All of those things help extend the length of stay. Very rarely do we see somebody leave because they don’t have any money left. One of the things we’ll be doing here once we reach stabilization is establish a fund to help provide a cushion if some of that is needed. The fact is though there could be some places where someone may need to leave. Depending on the situation, if they’ve been with us 3, 4 or 5 years and are spending down their assets, we’ll look to see what we can do to help. We’ll also look at placement situations. Many of our residents die unfortunately with us, but that’s a fact of life. Rarely do they live more than 2 ½ or 3 years with us. If we get to a situation like that a lot of times they may need heavier care which would require Nursing Home Care placement. In one of our buildings a couple of weeks ago we had a resident’s daughter move her mother from our community where her mother was doing very fine in all of our programs and activities in what we call secured freedom inside and outside the building. The daughter said it was costing her too much money. She moved her mom into a small board care home where I believe the care is probably good but there’s not much in the way of activities, no activities outside. The daughter has now left for a 2 month vacation overseas. You have some of that type of thing that occurs. It this case the mother was fine, clearly the daughter was more concerned about her inheritance at that point in time.

Mr. Michalko asked, has any numbers been crunched on who could actually afford to come into one of these facilities?  

Mr. Ritley replied, if you look at their median income earned through their work in life, what they do with their money is a very individualized circumstance. You’ve got to think about your future when you’re healthy. It’s a simple obligation in a society that you participate in. If you don’t because you didn’t think it was worth your while or you’d rather live off of somebody else or if your parents didn’t instruct you properly or that was part of your culture of your family origin, or it turns out you have this society get into a massive inflationary state which we experienced, think about the 1970’s. This is an unsettled world. We just do the best thing we can do. This should be a world of pluralism that we have these models out there, they are trying to make progress. If the lessen is served, not that it should be a cruel or unfortunate lesson, but the lesson is we must save money for our old age for when we’re not going to be able to manage ourselves as well as we could have when we were in our 30’s, 40’s, 50’s or 60’s. That’s a responsibility and you’re in a position to make that work.

Chairman Prcela asked, how many beds?

Mr. Feltman replied, 72. I understand the concerns. Honestly, candidly and being transparent, if we served everyone here, we would not be able to provide quality service and care. The cost is prohibitive to do so. We are serving as many people as we can. We’re encouraging and trying to educate families to be responsible for their Mother and Dad. I went through this with my family, we had to educate our families to step in and help out as well. When we look at a market place in terms of underserved population, we identify it based on the senior population that’s there and the growth of the senior population. What we don’t take into account which is common in many places, is that if a parent lives somewhere else, a lot of times when Mom or Dad need health care the adult children will relocate them if there is a quality community close by. They’ll relocate them to be close to home. In some of our communities, we have as many as 50% of our residents come from somewhere else, but their adult children live close by and they want to take care of Mom & Dad close by. In terms of the choice here, you folks have the authority to vote this up or down. If you vote it down because we can’t serve every single person, that’s the situation you have. I would encourage more services for seniors, whatever, however it could be done and encourage our society as well to be more responsible and take care of our parents.

Mr. Diemert asked Mr. Ritley to submit a copy of the drive time demographic chart for the record.

Mr. Ritley states, one of the alternatives is we have zoning on the property now, what’s wrong with that? There is something wrong with that. There’s a deficiency for this piece of property, 2.6 driving miles to get onto the freeway. Office tenants have great choices where they’re going to locate. Everything is linked in a chain of competition. You can go over to Science Park in Beachwood or the office parks in Solon or Mentor, these are all high speed access on the freeways. Some of those locations are slated for further development especially Chagrin Highlands. When you look at this slow growth occurring in Cleveland, you’re going to go to those areas that have more appeal, visibility, accessibility and reputation. This location for office users is lost up in that space that’s covered by all this beautiful land that opens up for parks, cemetery, two regional park systems coming together. The idea that somebody’s going to rush up there and bury themselves in the trees away from the freeway with no advertising value at the site, is a poor decision on the part of an office user. With respect to the research facility, there’re a lot of better places. You want to be in vibrant places, you want access to education because the context point will be the training of these people, education in getting their Masters Degrees & PhD’s to be the best kinds of researchers they could be. In the medical profession, we have two large systems as clients in our office and I’ve been studying this issue with them over the past 30 years, so I could speak for these entities. They’re all reaching out to pull everything together. This is the age of the big roll out where you see all these companies and institutions acquiring more and more for themselves because they have to, to operate at the most efficient level and to have a voice.

Chairman Prcela asked, what was the zoning of East Commons when they purchased it?

Mr. Marrelli replied, Office/Lab.

Mr. Ritley said, in the Unites States there’s a tiny bit of the operating income each year before taxes that corporations have that they devote to research. In that budget has to be the physical laboratories that are created. It’s a very very small amount of money. There’s been a lot of offshore and the world’s getting populated with better and better educated work force in the area of research. If you look at the medical service industry medical parts in Chicago, this phenomenon is a mess and sweeping by us quietly, a light breeze going through the trees, if you don’t notice it or not thinking about it too much but over time it has a tremendous impact on the delivery, quality, cost and availability for the population. This goes back to what I said earlier from the land use standpoint of locational economics as it relates to the community and the entrepreneur, this is an ideal marriage of interest. You get a benefit, a social dividend with the implementation of this kind of land use. 

Mr. Berns asked, and why can’t either offices or laboratories exist on this property?

Mr. Ritley replied, there’s no motivation to do that. There’s no reason why you would spend a ratio of 7 – 9 times what you have to put into the land structure. When you look at the population of building structures in this community, when you see the amount of time these offices stand on the market at the rates that they’ve gotten which were based on their original costs, you’re going to produce something at today’s cost? You can’t do it for medical. You can’t do it for just general offices because you’ll wind up creating small offices today which are even smaller than they used to be. They went down from 275 sq. ft. thirty years ago and now there’re down below 175 sq. ft. for the worker. The squeeze is going on. The small business users are not going to go to that kind of a location. They’re going to look for cheaper rent. They need to control their outflow because they’re small enterprises.

Chairman Prcela said, a few of us served on the 20/20 Vision Committee 17 years ago and it’s interesting how land use has changed over the years. I’ve heard a lot of good facts as to why you all feel it’s a good benefit, but from a financial perspective, I’m still not 100% sold on the financial return on a $1.8 million payroll, although I do feel the use has a need. I wasn’t here at the last meeting, but I did read the minutes. 

Mr. Ritley responds, it’s not how much you make on each project. You were gifted with this wonderful Library created here and it’s magnificent and you think about what it costs per citizen in a community. There’s a big gift of having that available. To get as much culture as you created here, you have all these means and you hold yourself out to the community and you’re doing a great job, that’s another element. They came in and they did that for you. Maybe you should take an inventory and say there’s an offset. I’m a betting guy, I will bet you that you will not get more out of this property if you throw it out on the market at the present zoning.

Presentation by Thomas Jones, Real Estate Consultant
ARTIS Senior Living 

Thomas Jones introduced himself. I’d like to make a correction. In terms of the $1.8 million payroll, obviously that will accelerate over time with inflation and as wages increase.

Mr. Jones asked if at this time the Fire Chief could make his presentation. After that, I’ll respond, finish the presentation on our building and close with any questions.     

Mr. Diemert replied, all the Director’s here tonight had some things they want to say.

Chairman Prcela suggests ARTIS continue with their presentation at this time, followed by both Chief’s and Director’s comments.

Mr. Jones hands out staffing schedule “Artis Senior Living Staffing” (attached), specialized staffing members dedicated to the different parts of the organization and residents lives. Another hand out is “Artis Way in Action” (attached), our corporate philosophy and how we deal with the residents. I have two short videos I’d like to share with you.

Video #1; begins at 8:23 pm, ends at 8:26 pm.; (Daily lives of the Residents)

Video #2; begins at 8:27 pm, ends at 8:30 pm.; (The Facility)

Mr. Diemert suggested Building Commissioner John Marrelli speak at this time.

Comments by Building Commissioner John Marrelli

Mr. Marrelli said, I have a question for the Appraiser. What’s your resourcing materials for your facts and figures, and could you submit them?

Mr. Ritley replied, I’ll send you to those sites, for example, the State of Ohio Dept of Health.

Mr. Marrelli asked, is that where you got the 20 minute drive time radius you submitted?

Mr. Ritley replied, I’ve also reached out for information by calling each one of these facilities and getting information about how many beds do you have for folks who are living with Alzheimer’s or dementia and looking at the case where they have 35 rooms and 33 occupied. There’s a variation that occurs. One specifically had 176 rooms for people with mental illness fully occupied. One with 25 beds at Montefiore and 22 occupied. The ranges in here are quite telling.

Mr. Marrelli said, so you extrapolated these numbers-

Mr. Ritley said, that’s why I was so impressed with these ratios that I described to you.

Mr. Diemert states, John you were sworn in already. Did you read the minutes from June 20th?

Mr. Marrelli replied, I did.

Mr. Diemert asked, the things that you stated in that meeting, are they all affirmed today to what you had said then?

Mr. Marrelli replied, yes.

Mr. Diemert said, you have access to a zoning map that you created. Could you please explain this to the Board and point out the various areas?

Mr. Marrelli explains the “Office Lab District Occupied & Office Lab District Available” map (attached). The blank patch mark is Office/Lab District upper left corner and those are the Office/Lab Districts that are occupied. First of all, I have all our Office/Lab land on this map, either occupied or available. The hatch marks that are not in color are the ones that are occupied. As you can see from the bottom up along the freeway and Progressive, on some of the locations there’s a medical facility here, the Library here, Progressive again, then these are all office uses. The land next to Progressive’s site is occupied by the soccer park which means it’s not available. What is available right now is what we almost had before which was Campus III for Progressive and the land where ARTIS wants to go. All the others are being used.

Mr. Diemert asked, John in your capacity as Building Commissioner did you pull up and ask me to present to the Board the Zoning Code pertinent sections? Please identify to the Board and explain what Use District this is.

Mr. Marrelli refers to;
Section 1173.03 (b) Office-Laboratory District (attached)

(1) Main buildings and uses

  1. Offices: Professional, financial, public utility, executive, administrative and sales offices.
  2. Laboratories: Experimental, research and testing, all types of basic and applied research of product design and development, including but limited to the construction and operation of small-scale experimental operations.

Mr. Diemert asked, those are a number of uses other than just medical that are permitted on the Office/Lab District?

Mr. Marrelli replied, correct. Medical would require a Conditional Use or a USE variance.

Mr. Diemert asked, with the subject property have you experienced anyone coming in looking for or having inquired about any of those other uses of having been marketed on this property in question?

Mr. Marrelli replied, I have not.

Mr. Diemert asked, what is the use that has been marketed to your knowledge?

Mr. Marrelli replied, supposedly medical offices which I don’t have any information because I’ve never been contacted.

Mr. Diemert said, if you could please explain to the Board how it happened to become a Conditional Use.

Mr. Marrelli explained, it’s zoned Office/Laboratory. Mr. Cannata came to us after doing his market studies and decided that it should be a Conditional Use for medical because his research proved there was a demand for medical office and that would be a suitable site for that.

Mr. Diemert asked, how long did that process take?

Mr. Marrelli replied, it took us 2 or 2 ½ years through numerous meetings with Planning Commission, Board of Appeals where there were probably 11 or 12 variances given, site plans were reviewed and re-reviewed and our Engineers went back and forth. It was a good 24 – 30 months of labor between Sam and our force. 

Mr. Diemert said, you identified on the map that all of the Office/Lab zoned areas are filled except the subject property for tonight and one other. All those others are still occupied and in active use?

Mr. Marrelli replied, they are. 

Mr. Diemert asked, is there anything else you wanted to explain to the Board?

Chairman Prcela asked, what are we trying to get at, that there’s an availability of unoccupied Office/Lab or there’s a deficit?

Mr. Marrelli replied, all I could say is all of our Office/lab areas are in use. In my mind, I believe that that could be used under the code the way it’s written.

Chairman Prcela said, thank you for that clarification. We all value Mr. Marrelli’s professional opinion on the matter.

Mr. DiFranco asked Mr. Marrelli to explain the need for the Conditional Use.

Mr. Marrelli replied, the zoning is Office/Laboratory, it doesn’t allow medical use without a Conditional Use Permit.

Mr. DiFranco said, office is professional-

Mr. Marrelli said, that’s not medical.

Mr. DiFranco asked, is there a specific definition for that?

Mr. Marrelli replied, medical is specific.

Mr. DiFranco asked, do we have any medical office zone?

Mr. Marrelli replied, no. To expound, there’s a medical use in this one-story office area which is called Jefferson Park. That’s medical and professional on Wilson Mills. That facility is filled and has been filled since its inception.

Chairman Prcela said, the existing Senior Living facilities are over here?

Mr. Marrelli replied, yes right across the street.

Mr. DiFranco asked, how did that come about?

Mr. Marrelli replied, that was court ordered. There was no Conditional Use Permit or Use variance for that.

Mr. DiFranco asked, so the court order trumps our zoning code?

Mr. Marrelli replied, yes.

Mrs. Jeanblanc asked if Governor’s Village has a dementia facility.

OATH

Chairman Prcela administered the oath to Michelle Gorman asking her to state her name for the record. 

Michelle Gorman, Executive Director Governor’s Village introduced herself. In our calculations between the 20 minute drive time you talked about, there are 300 beds for dementia care.

Chairman Prcela asked, you offer the same service?

Michelle Gorman replied, we do.

Chairman Prcela states, this then would be a direct competitor.

Mr. Marrelli asked, are you filled up?

Michelle Gorman replied, yes.

Mr. Cannata said, you point out that the hatched area is office/lab use but in fact most of it is taken up by park and a nursing home and I’m squeezed out here on an island, kind of isolated. If you look at the map, I’m sitting on an island by myself.

Mr. Marrelli said, you’re on North Commons with Progressive.

Mr. Cannata said, what I was proposing does not compete with Progressive. They have a monopoly. I’m just pointing out that the hatched area that is office use is taken up by a soccer field and then around the corner is a nursing facility and then I have a little dot here.

Chairman Prcela said we have someone in the audience who would like to speak and has already been sworn in.

Comments by David Hollister, Agent for ARTIS

David Hollister, Managing Director and licensed Real Estate Salesperson with Newmark Grubb Knight Frank introduced himself. I’m the agent for ARTIS, I do land work and office leasing. I’ve been bombarded by Michael Gatto, the agent for this property when I had client leads on the east side for office. He’s been all over me trying to get me to have clients to look at this site. One of my clients Glen Meade kicked off a brand new building at Chagrin Highlands, they would not look up here. Another, an insurance company would not look up here. It feels like an outpost. One thing to look at from an office perspective is yes, Jefferson Park may be full but the rental rates do not support new construction. Also if you look north of here in Willoughby, there’s offices up at the corner there that have struggled tremendously over the years. Some have gone in foreclosure, a lot have gone in receivership, they’re probably ½ full. It’s a very difficult office market for this area and I could not get my clients to look here. The east side office market is very tight, some of the reason is new construction.

Mr. Berns asked, how far is Jefferson Park from the freeway?

Mr. Marrelli replied, ½ mile.

Mr. Berns asked, how about subject property?

Mr. Marrelli replied, probably about 2 miles.

Mr. Berns said, how about 2.6 miles.

Mr. Marrelli said, o.k. 2 ½ miles. 

Chairman Prcela said in jest, for the record Mr. Berns is not on trial here.

Mr. Berns asked for clarification of Office/Lab districts occupied and available.

Mr. Marrelli replied, if it’s occupied, it’s not available. John points out the soccer field and then here is Progressive which is all offices that’s in another district.

Mr. Berns states, God bless Progressive.

Mr. Marrelli states, absolutely and they’re 2.6 miles from the freeway.

Mr. Berns asked, how many square feet do they have in buildings?

Mr. Marrelli replied, 5-stories, 3 buildings, maybe 500,000 square feet.

Mr. Berns said, they built a building for themselves. John, how much building can you put on subject property?

Mr. Marrelli replied, maybe 50,000 or 60,000 square feet.

Mr. Berns said, 50,000 or 60,000 square feet and 2 ½ miles from the freeway. Do you know anybody that wants to be there?

Mr. Marrelli replied, I think some attorneys might want to move in there.

Mr. Berns said, as opposed to being on Chagrin Blvd? You don’t want to try and guess whether or not the cost of construction for a building there would command enough to-

Mr. Marrelli replied, that’s up to the appraiser.

Mr. Jones asked, the expansion of Governor’s Village, how was that authorized?

Mr. Marrelli replied, they had a variance to expand in 2015. They were not rezoned and they don’t have a conditional approval. They have a court order.

Mr. Jones asked, the authorization to expand was a discretionary decision?

Mr. Marrelli replied, it was.

Comments by Fire Chief Gino Carcioppolo

Mr. Diemert states, Chief you’ve been sworn in and you read the minutes from June 20th. All the things you said at that meeting are you affirming those today as well?

Chief Carcioppolo replied, yes.

Mr. Diemert states, the letter you submitted to the BZA at that time dated 6/17/17 does that affirm today as what you believe are the facts relating to the impact that might occur on the Fire Department?

Chief Carcioppolo replied, yes.

Mr. Diemert asked, how did you perform your investigation in coming to those facts?

Chief Carcioppolo replied, I reviewed our call logs for the past few years and specifically honed in on Governor’s expansion and how that impacted us. That was a pretty easy correlation to make based on that size increase.

Mr. Diemert asked, what was your conclusion?

Chief Carcioppolo replied, that it equates to approximately 1 - 1.25 calls per bed annually.   

Mr. Diemert asked, since the last meeting on June 20th did you do any supplemental investigation?

Chief Carcioppolo replied, I did. I talked to the Deputy Chief of Mason Fire Dept.

Mr. Diemert asked, why did you do that?

Chief Carcioppolo replied, I believe it was mentioned in the last meeting’s information packet and I was told to reach out to him. I did that, and based on their call log and I’m glad that he brought up how filled your facilities are, and the approximate saturation of the facility because it correlates with what Deputy Chief Bosko informed me. In review of their call log, in the beginning the occupancy is not close to being at its maximum occupancy and that’s seen in the call volume.

Mr. Diemert said, in this letter dated July 5th (attached), explain to the BZA your findings.

Chief Carcioppolo said, if you divide those 24 or 28 months from when they opened by the total call volume it equated to approximately 2.2 calls per month. But if I look at the last 6 months which is closer to the maximum occupancy the call volume was closer to 5 calls per month, around 4.7 or 4.8 calls per month.

Mr. Diemert asked, how do you portray the amount of impact on your department those kinds of call increases have?

Chief Carcioppolo replied, if we realize a 72 bed facility and I know there’s room for expansion on the plans I saw, that would impact us by about 5-7% of our current call volume.

Mr. Diemert asked, what does that mean to your department?

Chief Carcioppolo replied, it means we’re going to have to be available for more calls and that’s o.k. I just wanted it to be known that it will impact us so we may have to look at increasing staffing and potentially putting an additional ambulance in service.

Mrs. Jeanblanc asked, what would that cost?

Chief Carcioppolo replied, full time Firefighter annually at Class A pay with all their benefits is approximately $130,000 to $140,000 per year. Increased staffing, maybe three of those, one per shift. An ambulance is an item we’re trying to get 20 years out of and it costs about $250,000.00. That’s o.k. it’s just what it is. I just wanted to be on the record stating that.

Mr. Diemert asked, you mentioned you wanted to tell the BZA about the comparison to the currently zoned Office/Laboratory occupied areas, what’s your call volume to those uses? 

Chief Carcioppolo replied, Progressive with approximately 8,000 people a day is less than what Governor’s Village produces. It’s not a bad thing. I want to commend Michelle Gorman and her staff because they’re very compassionate and very good to deal with and I’m happy that they call because they need to call, that’s what we’re there for.

Chairman Prcela said, having elderly people or people with diseases require more calls to the EMS and office. It’s just the nature of the beast.

Chief Carcioppolo said, it’s not whether I like it or anybody likes it or not, it’s just when you take on facilities like this it increases that spike. It’s not a normal progression, it’s instantaneous.

Mr. Diemert asked, is there a difference between Office/Laboratory occupied now compared to what it would be with a facility 24 hours?

Chief Carcioppolo replied, Progressive is 24 hours a day. They drop down to around 1,000 occupants at night. They bring in 8,000 to 10,000 people a day between all their facilities. They’re also still open at night so it’s a little different than most other businesses where people go home and our resident population is back down to 3400 at night. The only thing else I could say is I tried to reach out to Cincinnati and other bigger communities where ARTIS may be but they’re a little harder to obtain information from, also it’s some volunteer Fire Departments. I have not received any official call log from them so I didn’t want to comment on that. I did recognize on your website that there’s 15 facilities that you have and 8 of them are under construction-

Mr. Feltman said 9 operating and 6 under construction.

Chairman Prcela asked Chief, in your professional position, you don’t have anything against this operation other than letting this Board know it’s going to be a strain on your department?

Chief Carcioppolo replied, an operational strain.

Mr. Berns said, Chief I assume you know people who occupy your position in other cities, Mayfield Hts. for instance. Do they charge for EMS calls for residents and non-residents?

Chief Carcioppolo replied, they do.

Mr. Berns asked, they don’t charge residents beyond insurance, right?

Chief Carcioppolo replied, I don’t know exactly what their billing practice is, but I believe you’re correct.

Chairman Prcela asked, what’s our practice in the Village for the record?

Chief Carcioppolo replied, we charge non-residents and we only charge what insurance is willing to pay.

Chairman Prcela said, and that’s a benefit to the residents of our community.

Mr. Berns asked, do you know if the City of Beachwood charges for EMS?

Chief Carcioppolo replied, I don’t know their individual charging practices. It’s not really up to me and I don’t really care to be honest with you and Beachwood is the highest income per capita of the State.

Mr. Berns said Mayfield Village and Beachwood both have health care facilities. Chief, if you change your ordinance, and I understand that the reason Governor’s Village and this facility wouldn’t be charged because people that live there are permanent residents of the city, right?

Chief Carcioppolo replied, that’s exactly how they’re viewed, yes.

Mr. Berns said, if you changed your ordinance so you could bill those people up to whatever insurance they had, if they had Medicare, Medicare would pay for it and you’d have additional income, do you agree? 

Chief Carcioppolo replied, we would.

Mr. Berns asked, might that alleviate the problems you talked about as far as staffing and equipment if you charged both of them?

Chief Carcioppolo replied, that’s a potential. But again, that’s policy change.

Chairman Prcela said, we just went through a pretty long Ordinance Review Committee but it is an interesting fact, an interesting idea.

Mr. Berns states, almost every community in Northeastern Ohio that has EMS facilities charge. Most of them charge the residents only to the extent that they’re insured, nothing comes out of pocket.

Mrs. Jeanblanc said, unless they have a high deductible plan.

Mr. Berns said, let me cover that. Medicare has its own limits to what people pay for EMS calls. If you charge them too much, they won’t pay that much. They generally pay maybe 80%. In addition to that, there’s also a copay or deductible. They don’t collect any copay or deductible and you can’t collect it from the residents. You can only collect what their insurance pays. It seems like almost all of the people that are in these kinds of facilities are covered by Medicare. I’ve had conversations with Mr. Diemert about a change in your ordinance so that you are billing for EMS services to alleviate these problems.

Michelle Gorman states, you could bill $100,000, but how much of that will insurance pay? The insurance only pays a certain portion based on their usual customary charges. You’re not going to get all the money you bill them.

Chairman Prcela interjects, I’ve been on this Board for over 10 years and I’ve never seen this Board vote on a condition that an ordinance be revised.

Mr. Berns said, I’m suggesting this is something that can be done by the Village in order to alleviate this problem. It’s something that almost every other community does do. Then the Chief would not have this problem.

Chairman Prcela asked, are you suggesting we should table this until such time as we get the ordinance approved?

Mr. Diemert said, the ordinance as it exists, does not allow that. Council will consider it but they haven’t adopted it. This Board has to deal with what exists today.

Mr. Berns understands. I’m going to talk about people with disabilities. I don’t want to get into this but I’m going to. Under the Fair Housing Act people with disabilities got to be treated a little bit better perhaps than other people do.

Chairman Prcela said, there are no people with disabilities on this lot, it’s all for Office/Lab.

Mr. Berns understands. This is never going to be Office/Laboratory unless heavens to Betsy maybe somebody will arise out of the heavens. The fine city of Beachwood decided 40 years ago they were going to have a Science Park. If you drive down Beachwood you’ll see a big sign saying Science Park. They were determined to get office research. They wanted science. Guess what, there isn’t a single user, not one office lab with research anyplace there. There are banks and Cleveland Clinic which is Beachwood’s Progressive. It would be an act of God if it happened. As far as office buildings, it’s probably the last place in the world somebody would want to build an office building. You can’t afford to build one and get rent for it. That’s not going to happen. Here, you’re left with a use that can be done. It’s compatible with Governor’s Village, it’s compatible with residential which surrounds it. It serves the purpose, that’s the reason to vote for this. The Village says we have a problem with our EMS service, we can’t afford this. But they can afford it simply by changing their ordinance so the insurance companies pay it. They can alleviate the problem and meet the requirements of Federal Law as well as State Law. By the time this gets resolved, it’s got to go to Council, referred to the Planning Commission and then goes back to Council. The earliest this could ever be approved would be September. Is it possible Mr. Diemert that Council might act between now and September on a change of ordinance?

Mr. Diemert replied, anything is possible but it’s not on their radar at this point.

Mr. Berns asked, can we put it on their radar?

Mr. Jones said, to be very short-

Mr. Diemert said, we have two other Administrators left to speak, then you could comment.

Mr. Jones said, this goes directly to the Fire Chief’s comments, it’s not that I disagree with him, I’m simply saying based on a three year study and based on his calculations, I’ll just pass this out it’s the ‘2015 State of Ohio EMS Incident Reporting System Annual Report’ (attached), we estimate 62 annual runs. I’d like to comment that under Chief’s leadership he’s dramatically transformed the Fire Department into a very valuable asset to the community. We’d feel very comfortable being in the Village with the Fire Department under his leadership. To the hand out it shows that the vast majority of EMS runs are actually contributed to homes and residences and not health care facilities. Thank you.

Chairman Prcela asked, anything further for the Chief?

Mr. Feltman said, I appreciate your problem. In every single one of our communities, EMS service bills for EMS runs.

Chief Carcioppolo said, I understand that and I can tell you that I agree with Mr. Berns, it’s prevalent. We probably are one of the only communities that does not bill its residents. I would say that’s also part of our pride. We separate ourselves. We feel we are public servants and that’s what we’re here to do, is to provide service to the community.

Mr. Feltman said, that’s honorable and if I lived here, I’d appreciate that as well. What I’m saying is residents of our communities, Medicare pays for emergency runs, it goes directly to the family. I’m not saying you need to change the program for all of your residents, that’s your decision, it sounds like that’s a benefit. What I’m saying is if you feel that a community like ours is going to be an extra burden, this is a procedure that we typically see everywhere, it’s that there’s a billing and typically you see Medicare paying for it, in terms of residents of our community, not the residents of the community outside of our community.

Chairman Prcela said, for the record it sounds like you’re suggesting that the ordinance be modified just for the higher density uses.

Mr. Feltman replied, right.

Chief Carcioppolo said, billing is not a guarantee you’re going to get paid for it. It might take 2 or 3 years.

Mr. Feltman states for the record, not every Assisted Living Community has Licensed Nursing at night. Most Assisted Living is general Assisted Living and a lot of general Assisted Living Communities have a small dementia unit attached to them. Not all of them have Licensed Nurses 24 hours a day, we do which allows us to stabilize a lot of conditions as well.

Mr. Berns said Chief, to your question, I’ve had the unfortunate need to be transferred by EMS to the main campus of Cleveland Clinic. It was an expensive trip. I received a bill from the city of Beachwood and I found out within 1 ½ months, the bill had been paid.

Chief Carcioppolo replied, that may be an exception. There’s no guarantee that’s how payments work out.

Comments by Police Chief Rich Edelman 

Mr. Diemert states Chief, you’ve been sworn in already. The Fire Chief said you wanted to make some comments. How do you relate to the Fire Departments impact?

Chief Edelman replied, I’ll be brief. It’s been historic practice for Mayfield Village Police Department that we respond along with the Fire Department. They do respond occasionally outside the confines of Mayfield Village. Whenever they respond to Mayfield Village, the Police Department responds with them.

Mr. Diemert asked, why is that?

Chief Edelman replied, that’s to provide manpower support as well as security anytime they go on a call.

Mr. Diemert asked, would an increase cause any impact on your department?

Chief Edelman replied, potentially yes. We typically run 3 cars on the road, sometimes 4. It could use up about 1/3 of my manpower anytime you have a call come in.

Mr. Diemert asked, anything else you want BZA to know?

Chief Edelman replied, that’s it. Thank you.

Mr. Diemert asked, does anyone else have any questions? There were none

Mr. Diemert thanked Chief Edelman.

Comments by Finance Director Ron Wynne  

Mr. Diemert said, last is our Finance Director who has some comments to make. You’ve been sworn in already Ron, correct?

Mr. Wynne replied, yes. I’ve been requested to pull some tax revenue numbers together for the Board to consider in making their decision of how to move forward.

Mr. Diemert said, you have a copy in front of you. Did you prepare that today, the date of July 6, 2017? (attached)

Mr. Wynne replied, yes I did,

Mr. Diemert asked, basically what did you do?

Mr. Wynne replied, I took a look at the RITA tax collection for 2015/2016 time period for Village employers/facilities very similar to ARTIS and Governor’s Village and there are two other facilities that are medical office.

Mr. Diemert asked, what’s your projection that ARTIS would bring them?

Mr. Wynne replied, based upon their payroll of $1.8 million, around $35,000 or $36,000 on an annual basis.

Mr. Diemert said, similarly zoned Office/Laboratory Districts, did you compare any of those to the existing zone district to compare?

Mr. Wynne replied, yes. Jefferson Park on Wilson Mills is a single-story, multi-tenant office building. I believe they have 10 or 11 offices in their facility. John, is that right?

Mr. Marrelli replied, I think 5 buildings with 4 to 7 tenants in each building.

Mr. Wynne said, I also looked at the U.H. Center. At Jefferson Park, our income tax revenue averages about $139,000 annually and for the U.H. Center about $76,000 a year, 36,000 square feet. 

Mr. Diemert asked, any other thoughts on the impact to the Administration of the Village that you’d like to bring to the attention of the Board?

Mr. Wynne replied, no.

Mr. Jones states, only apples to apples comparison could be made that you calculated the amount of square footage that office people are occupying. As was said earlier, the only building that could fit there is potentially 40,000 or 50,000 square foot. That’s not apples to apples.

Mr. Marrelli said, that building square footage is about equal to Jefferson Park.

Chairman Prcela said obviously the take away there is that office tenants pay substantially more per square foot than residence. 

Mr. Marrelli said, that facility has everything from ticket sales to skin care, to barber shop, to medical. It’s a mix of professional office. Going back in history, I think that was the big selling point for Mr. Cannata and that’s why I think we spent 2 ½ years trying to push that medical through because of the revenue.

Mr. Wynne states, from a property tax collection standpoint, property tax collections on Governor’s Village is $200,000 - $300,000 a year. The majority of that goes to the schools. We tend to see about 5% or 6% of that.

Mr. Diemert thanked Mr. Wynne. Mr. Chairman, I think that’s all the Administrators have to say. If Sheldon or anyone from the other side would like to respond.

CONCLUSION:

Mr. Ritley said John, with respect to what you said, I have a particular view of it. If you look at Progressive with two campuses, this is so independent of anything and everything. This is a gentleman who wanted to build something on the Lakefront in the most extreme fashion in Cleveland some years ago. He was somebody who gave Case Western Reserve University a lot of money so Frank Gehry to come in and build his sculpture for the business school. He was a very exceptional person. By the same token other corporations have chosen to locate in more remote areas with part of their operations. Big financial operation in Beachwood into a Science Park. And what’s there now, Cleveland Clinic with all their offices in that area. Eaton Corporation has been a wonderful example of great architecture on site. But these are all very large scale independent facilities. I want to make sure that’s separate from a little heavily dependent operation here because it’s looking for people to understand where it’s located and then to be able to compete against all of the other locations that are out there with a scale that you would be able to produce at 40,000, 50,000 or 60,000 square feet. Those numbers aren’t calculating inside parking or surface parking. When you look at value that’s created there but you can’t cover the cost of construction with the rents you can receive. It’s right here, I’d be happy to share this data with anybody in this room. There are 40 or 57 buildings in here, some of which are sold in the range of $60 to $120 / sq ft. from 2014 and forward to this day. You can’t build a building at $120 /sq. ft. 

Mr. Marrelli asked, if you had met Mr. Cannata today and he hadn’t owned that property, how would you advise him to move forward?

Mr. Ritley replied, don’t buy it.

Laughter ensued.

Mr. Ritley replied, truly if you told me that was the zoning.

Chairman Prcela said, you would tell him to put it off contingent on getting it rezoned.

Mr. Ritley replied, no. I’m going to tell you why, the same proposition exists. You’ve got to face the facts on this thing. Why would I buy something that I’m going to have to go forward and take the risk of it. I don’t care whether you’re talking about today’s stock market going crazy, low interest rates and all the wonderful candy being handed out. What it really amounts to in this day and age with all of these pluses, you can’t make any economic sense out of it. It was worse in the year he bought it.

Mr. Marrelli asked, why is it economically feasible for ARTIS?

Mr. Ritley replied, it’s only a different business model. The revenue stream that comes from it comes to perform essential services in that location. That’s how the latent productivity of the land is being released, because it flows through a business model that is best suited for a location like that where they can deliver a service to a needy population and that population will pay for it.

Michelle Gorman asked John, how many stories is the structure?

Mr. Marrelli replied, 1 ½ stories and it has to be similar in design to Governor’s.

Chief Carcioppolo states, I just wanted to let everyone know I just reviewed this document that was presented by Mr. Jones ‘Mayfield Village Fire Department’ (attached). I wanted to articulate that the 3 new hires that we hired in Dec 2013 and the 3 new hires we just hired this month, currently they’re still on training and haven’t even really started working shift. These aren’t additional positions to our department. These were exchanges for part-time slots. Our staffing has remained at 4 to comply with Ohio Administrative Code Occupational Safety and Health Standard for Fire Departments to meet the 2 in 2 out requirement. The only position that we’ve actually added is the Assistant Chief Fire Marshal’s position to conduct Fire Prevention operations. We did add these positions but it’s just an exchange of part-time positions for full-time. Our staffing hasn’t changed.

Michelle Gorman from Governor’s said, we thought about what was said within the 15 – 20 minute mile from us, there’s a lot of competition. And when you talk about the early onset dementia at 65, most people that come through my door have 3 years’ worth of money at $5,000/month. I’m assuming you’re going to be around that range. I just don’t know that this market will be able to support 72 more units.

Mr. Feltman said, I understand you don’t want competition.

Michelle Gorman replied, I love competition, bring it on.

Mr. Feltman said, to make it clear here, most of your building is General Assisted Living, is that correct?

Michelle Gorman replied, it is, with some form of dementia.

Mr. Feltman asked, how large is your dementia unit?

Michelle Gorman replied, 23 units.

Mr. Feltman asked, 23 units attached to your building?

Michelle Gorman replied, correct.

Mr. Feltman states, in terms of early onset dementia, you could go to the Alzheimer’s Association, you don’t have to take my word for it. That is an epidemic that’s coming.

Michelle Gorman said, correct, I agree. 

Mr. Feltman continued, one of the factors of early onset, is it declines much more rapidly. We’ve been serving people with early onset dementia for several years. The time period that they’re with us is a lot shorter.

Michelle Gorman asked, so you think your focus will be on early onset dementia?

Mr. Feltman replied, no. Our focus is on and we’re a 100% dedicated community. Everybody is trained in that building to serve the dementia care residents.

Michelle Gorman said, as ours-

Mr. Feltman said, whether they’re early onset dementia or not, we’re there to serve. I’m just telling you the facts.

Michelle Gorman said I agree. I’m just telling you what I’ve seen-

Mr. Feltman said, I would just like to say, if we’re approved, we’ll work with you.

Michelle Gorman said, I totally get that. I was going to say something, but that’s fine. We are very good neighbors.

Comments by Chuck Kinnaird   

Chairman Prcela turns the floor over to Chuck Kinnaird, abutting property owner to the proposed project.

Chuck Kinnaird, 294 SOM Ctr Rd. introduced himself. I’m on the east side of the property. Whoever is there and no offense to you personally, I’d rather not see anything built there but I have no control over that. I want my business to be my business and their business to be their business. I want to make sure there’s maximum buffering that I could get and without encroaching on my property. Things can be worked out. As far as the fence height, I prefer the highest it could be. As far as the pine trees and mounds, are these trees going to be guaranteed? I want something in writing that if you put in 8 trees and 6 of them die, is it my responsibility to replace these trees? Those are my concerns.

Chairman Prcela thanked Mr. Kinnaird for his comments.

Mr. DiFranco asked Chuck, you live by Governor’s Village. Do you hear the ambulances?

Mr. Kinnaird replied, yes I hear the ambulances. I get the lights coming in and out of the woods.

Mr. Jones states, two points. One, I believe that the Mayfield City School District has experienced a $4 million decrease in revenue for the last couple years, although that doesn’t directly concern the village, it does concern the greater community and a couple hundred thousand dollars from our facility I’m sure would go a long way for the schools. Second is that Mr. Kinnaird and I met on his property. We will have a 34,000 sq. ft. building blocking the lights. We’ll have an 8’ fence as proposed buffering his yard as well as the 3 sides of the building. We’re proposing to leave 30’ of woods that already exist. As far as the epidemic status of Alzheimer’s, it’s an exponential growth. I’d like to close by letting the Alzheimer’s Association video speak to those statistics. We hope we’ve proven the case that this is a reasonable use for Mr. Cannata’s property and we hope you vote with a positive approval.

Video begins 9:30 p.m., ends 9:32 p.m.

Mr. Berns said, listen I’ve been doing this for over 50 years. The biggest problem I have in representing property owners and developers national or regional, the biggest problem we have here perhaps across the country but certainly in Northeastern Ohio is that we look to real estate taxes to pay for our schools which is a horrible thing. You can’t remedy that. In so far as the Village services, they look to income taxes. So what do they want? They say they have to have office buildings, they need an office building there. But there isn’t any demand for an office building, nobody wants to be there. It used to be horrible 10, 20 and 30 years ago, now it’s impossible. What’s happened to our office market? All the offices Downtown for all these companies have disappeared, they’ve become for the most part residential units. The same thing is true in the suburbs. Some of those older office buildings have become residences. To try and place an office building on this small parcel, who in the name of heaven is going to spend more money per square foot to build an office building on the chance of getting somebody who will pay more rent? Jefferson Park, yes it’s an older building, they can get an office there. The notion is we can get more taxes and this remains something which can never be used for that purpose. There’s nothing that’ll happen that will change this market in that time. What you are talking about is preventing Mr. Cannata from ever using his property. You’re not going to get research. Office buildings, if you put an office building in, you’re going to put it where a freeway is, where it has ready access right off of the freeway. One of your requirements is that there is no viable economic use of the land. We satisfied that, there isn’t any. Now the question is; is this a reasonable use of the property? By golly, if you recommend this to the Village Council and Council changes in one way or another your ordinance for EMS, you won’t have a problem and the world will be wonderful and there will be a lot of elderly people with dementia who will have a place to go. Thank you.

Chairman Prcela concludes with final comments. We appreciate all the comments. We understand what’s at stake, so I understand why everybody wants to have the last word. But we should as a Board have the last word. I read the minutes, I don’t know that’s there’s much new information for us to discuss amongst ourselves. I can tell you my position. My position is that this parcel is surrounded by or directly across the street from a very similar use. I think that the use presented to me makes sense based on everything I’ve heard. I don’t think there’s any hurdle. The financial hurdle would be nice, maybe that’s something we could address with some help from the Chief. I do believe it’s an obvious fact that there’s going to be a bigger burden on his office. I do believe that a Memory Care Facility at this location is probably not a bad thing. 

Mr. DiFranco said, Chief raised that there’s potential for expansion.

Chief Carcioppolo replied, on the plans there was an identified portion for expansion.

Mr. Jones said, it shows a 64 bed building going to 72, so 72 is the cap.

Chairman Prcela asked John for clarification, if we were to grant a USE Variance, it runs with the land?

Mr. Marrelli replied, forever and ever. It’s not like a Conditional Use Permit that’s renewed every two years.

Mrs. Jeanblanc asked, will it still require a variance for the 8’ high fence?

Mr. Marrelli replied, I’ll have to relook at that. In an industrial district next to a residential district you’re allowed an 8’ fence because of trucks and trailers. I’d have to go back and reread how that’s written to see if it would apply to this site. They may need a variance.

Mr. Feltman said, what we look at is a 7’ fence with 1’ decorative lattice. It makes it very attractive.

Mr. Marrelli states, we have four types of fence that we permit, solid is not permitted.

Mr. Diemert said, we’ll talk about that at another time.

Mr. Syracuse said, we’re just voting on the USE Variance. They would need to submit plans and then if there’s a variance request, it’ll come to us at a later date.

Chairman Prcela asked if there is any further discussion.

There were no further comments.

DECISION:

Mr. DiFranco, seconded by Mr. Syracuse made a motion to approve the request for a USE Variance to permit Permanent Parcel No. 831-05-015, zoned in the Office-Laboratory District to be used as a Memory Care Assisted Living Facility as proposed contingent upon:

  1. Mr. Kinnaird at 294 SOM Ctr Rd. is provided the appropriate buffer.
  2. Development Agreement per Council’s input.

ROLL CALL

Ayes: Mr. Prcela, Mr. Syracuse, Mr. DiFranco, Mrs. Jeanblanc      
Nays: Mr. Michalko             

Motion Carried. Recommendation to Council.

Right to Appeal

Chairman Prcela stated written notice will be mailed by the Building Department confirming the decision and any interested party has the right to appeal within 10 days.

Mr. Diemert corrected, actually this automatically goes to Council per the new Charter Amendment. Nobody needs to appeal.

Mr. Feltman thanked the Board and everyone for their time.

ADJOURNMENT:

Mr. DiFranco, seconded by Mr. Syracuse made a motion to adjourn the meeting.

ROLL CALL

Ayes: All 
Nays: None                                      

Motion Carried. Meeting adjourned at 9:45 p.m.

Enclosures:     

  • 2016 Drive Time Demographics
  • ARTIS Senior Living – Staffing
  • ARTIS Way
  • Office Lab District Occupied & Available Map
  • Chapter 1173
  • Letter from Chief Carcioppolo dated 7/5/17
  • 2015 State of Ohio EMS Incident Reporting System Annual Report
  • Letter from Ronald Wynne dated July 6, 2017
  • Mayfield Village Fire Department submitted by ARTIS