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Senior housing project may be a perfect fit in Salem

Morning Journal/Larry Shields Mike Mancuso, executive director of the Salem Sustainable Opportunity Development Center, second from right, makes a point during the announcement of a senior cottage complex planned in Salem. State Rep. Tim Ginter is seated while John B. Conglose, president of J.B. Conglose & Associates, a financial and site adviser in the project, is on the far left. John M. Ginnocchi, vice president of development for Pittsburgh-based Trek Development Group, made the presentation on behalf of his company.

SALEM — A $9 million, 40-unit cottage development aimed at the growing market for affordable, enhanced senior living is planned for Bentley Drive and, if all the financial criteria is met, could open in 2019, according to John M. Ginnocchi, vice president of development for the Trek Development Group.

Mike Mancuso, executive director for the Salem Sustainable Opportunity Development Center (SODC), which played a major role in attracting the developer to Salem, introduced Ginnocchi and John B. Conglose, president of J.B. Conglose & Associates, LLC, that identified Salem from 39 other communities as a prime candidate for the Pittsburgh-based Trek Development Group’s first Ohio project.

Part of the SODC’s long-range sustainable plan, concluded in 2008 according to Salem Area Chamber of Commerce Executive Director Audrey Null, is aimed directly at senior housing needs.

Conglose said, “The pieces fit.”

He noted he has built a tax credit application file for the development that is six inches thick. Conglose came across Salem, focused on it and with Mancuso’s guidance, eventually targeted Salem.

“And it looks like we have a nice place to be,” he said.

Ginnocchi said Trek, which has developed 70 properties in the Pittsburgh region, develops and manages real estate, creates financial value while enhancing the lives of residents.

“We don’t build and sell,” he said to a roomful of guests including city and local business officials.

“We go through a public process,” Ginnocchi said, “if we’re successful we’ll try to build a portfolio.”

Both he and Conglose, a former economic developer and site selector, said Salem fit the senior market and was prepared with point-winning criteria that will assist in being awarded Ohio Housing Finance Agency (OHFA) money that will fund 75 percent of the development.

OHFA facilitates development, rehabilitation and financing of low- to moderate-income housing and its programs help first-time homebuyers, renters, senior citizens, and others find quality affordable housing.

It funds competitive fixed-rate mortgage loans and provides financing for the development of affordable rental housing through the housing tax credit program, issuing tax-exempt mortgage revenue bonds, and other affordable housing programs.

The remainder of the project will be paid with money from Trek Development Group and banking arrangements.

There is a below 60 percent of the median income compliance threshold which, according to a market study, Salem has the income to support the development, Conglose said.

Ginnocchi explained the criteria gets technical and March 16 is the first deadline regarding tax credits with OFHA.

He said once approvals are in place it will take about 12 to 15 months to build the “community cottages” and occupancy can begin in May or June of 2019.

Mayor John Berlin said utilities were laid out on Bentley Drive about 10 years ago.

“I’m just happy the roads will finally be used,” Berlin said and state Rep. Tim Ginter, who backed the project in a letter to state officials, said, “I’m excited to support this. I live here in Salem.”

Salem school board member Howard Rohleder, noting it was the company’s first Ohio development, asked how different it is from Pennsylvania.

Gonnocchi said it was “similar” noting every point makes a difference in what he called the very competitive award process, and conceded that “many of our deals don’t get funded on the first try.”

The proposed unit mix includes 26, single-bedroom units with a target income between $19,400 and $23,280 with an average monthly rent of $520 to $620.

There will be 14, two-bedroom units with a target income between $22,200 and $26,640 and an average monthly rent of $520 to $750.

Gonnocchi said Trek has found seniors, defined as age 55 and up, really love cottage communities.

The complex will have buffers and the units will be set on a common green.

lshields@salemnews.net

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