Where you relax in retirement till you relax in eternity
Paradise City is where you:
May relax and be a couch potato
May relax sometimes and be partly active in our directed activities
Have 24 hour community and shopping security--you may go anywhere in
Paradise City safely!
We have a no-smoking community--so everyone lives longer and with
better health!we are currently discussing the possibilities of exchanging amenities with these resort hotels, allowing us a wide range of activities and recreation opportunities.
Site: The site is located on the slopes of the Kohala Mountain range, which allows extensive views of the ocean, mountains and Maui, our neighbor island. These are one of a kind and extremely beautiful views and are the most colorful sunsets in the world. In addition to the natural beauty of the site, we are planning to landscape gardens and walking paths, consistent with the natural beauty of Hawaii and includes a seasonal stream running through, something we would like to focus on as a major water feature.
We are looking at a purchase of a site, 458 acres, a part of a larger track totaling 3,500 acres, including Puako, to be used for elderly housing, affordable housing and assisted care facilities, extended care facilities and market units.
The Market
We are targeting elderly and pre-elderly , people aged 45 and over,
retirees and those planning their future retirement.
There is a
current pent up demand for affordable housing estimated to be 26,000 units
statewide and 6,000 units in the County of Hawaii alone.
There are
more than 200,000 people over the age of 65 in the state of Hawaii, who could
also benefit from this development.
We also intend to target the
100 million elderly that are currently residing on the mainland, many of whom
have purchased a home there because they could not afford a home here in Hawaii.
Our studies indicate there are a large number of any population that would love to
retire to Hawaii, but until now there has been nothing in an affordable
price range. We intend to provide these affordable homes and use existing
and new support services.
Housing Needs Increasing
Proposed and current projects on the Big Island are targeted towards the
high-end market by providing a "home on the golf course" lifestyle. This
type of housing does not help the Big Island residents, but appeals to
highend residents.
CCI would like to take a different approach, by offering
obtainable housing for the Big Island residents. These people have been
traditionally locked out of market value housing and will benefit from our
proposed development. Our project would provide the community with housing that
truly is affordable to the average island resident.
According to most recent census statistics (1990), the number of Hawaiian residents who are over sixty years of age have increased 52% from 1980 to 1990. Nursing home admissions are expected to increase by 10% per year. By the year 2020, total nursing home and community expenses are projected to grow by more than 1,000 percent, resulting in an estimated annual cost well over $2.05 billion. The need for our development is self evident. The huge demand for this type of housing already outstrips the supply. This results in a severe shortage of this type of housing as well as dramatically increasing the cost of elderly and special need care.
To emphasize the current growth of the state of Hawaii, the 1980 population
was 87,000 and grew to 120,000 by 1990 and grew to 137,000 by 1995. This
growth continues, especially as the elderly budget increases and the "Baby
Boomers" look for housing that will allow them to live in the style they
would like to become accustomed to, because they are no longer retiring to
live their children. We are anticipating that they will want to, in some
cases have their families purchase a home within a short distance of the
retirement facility.
Expanding Industry
We are aware of the growing need for this housing and will also provide well
defined health care, both from a traditional and alternative medical
perspective. As we are planning to phase the first increment(three phases)
of housing on the Ouli site, we are also planning to phase assisted care and
extended care facilities(Puako to be five phases), to care for the
increasing medical needs of the community at Puako.
According to All About Business in Hawaii, Hawaii currently has 25 nursing
homes which provide 2,375 beds. This translates to 25 beds per 1,000 residents
older than 65, compared with a national average of 52.6 beds per 1,000
residents.
One can see the critical need for our proposed project as Hawaii
has the longest longevity in the nation. The life expectancy is 75 years
for males (born in 1986) and 81 years for females.
This has the health care
community preparing for severe shortages of beds. Even though the state has
approved 722 new beds, which is nowhere near the required number, it has
required that 80% of the proposed beds be made available to state Medicaid
recipients.
The fact that Medicaid has no funds available for government
sponsored construction for the next three years leaves the people scheduled
for these beds waiting, possibly "stuck" in a bureaucratic maze. Long term
care is high on the list, but the need is also very real for limited
care(assisted care) facilities.
The solution is to provide obtainable
housing with elderly care in a planned community with commercial, retail and
other service facilities. Our project would help solve this problem by
not only reducing the financial burden of our residents who are seeking not only
affordable housing, but elderly care as well.
Long Term Opportunities Hawaii has always been synonymous with paradise and the site at Ouli is a prime example of this paradise. The need for obtainable housing coupled with elderly care will continue to rise as the "baby boomers" approach their golden years. We anticipate that, because of our increasing and aging population, affordable and elderly housing needs will not remain static but will actually increase by the five year projected completion date. This would suggest timing for a second project, such as we are planning at Puako.
Market Description The general market we are going to target can be broken down demographically as well as geographically. Demographically, we will be targeting families who fall into the lower to middle incomes and the elderly population, in general. These groups are in desperate need for housing that they can afford, now and in their golden years. In addition, these groups are getting larger every year due to the increasing cost of living in Hawaii and the aging population. In fact, it is estimated by the University of Hawaii's Center on Aging that the elderly population will outgrow their available housing by ten percent per year, increasing the housing problem.
Geographically we are not focusing on the State of Hawaii, although our numbers indicate the need, but are looking at the U. S. mainland, Canada, Japan, China and Europe.
Market Size and Trends
Studies have shown that there is very strong demand for housing that really
is affordable. This is evident by the most recent housing study in Hawaii.
A study sponsored by Locations, Inc. and SMS Research titled "Hawaii Housing
Policy" yielded the following (emphasis added):
"Total pent up housing demand in the state of Hawaii was estimated at
27,865 units in 1992.
The pent up housing demand was 18,508 units on
Oahu, 2,444 units on Maui, 5,857 units on the Big Island and 1,056 units
on Kauai.BR> Incremental or new housing demand will increase annually by
approximately 2,100 units on Oahu,
850 units on Maui,
1,400 units on the
Big Island and
475 units on Kauai.
On the Big Island and Kauai, excess demand
will generally climb as new household growth is projected to outpace new
unit production.(BR> Excess demand will increase by 6,263 units on the Big
Island by 1995.
Excess demand will increase to 14,207 units on the Big
Island and 3,282 units on Kauai by the year 2010."
By examining population growth trends, many government and housing advocates
place the figure for the pent up housing demand closer to 50,000 housing
units.
Due to the price of current new and resale homes, young families are looking
to less expensive states in which to live. The Hawaii Housing Policy Study
states that of the total number of ethnic Hawaiians in the census report for
1990 that left the Islands, forty-six percent moved to the mainland because
it was more affordable. The study goes on to state that(U> 61.65 % of the Big
Island and
60.30% of Oahu residents will be able to afford housing
priced at the level of our units. The affordability of our project could give an
alternative to young families that were considering moving to the mainland
in search of truly affordable housing. These families would constitute our
primary target group.
Our primary target group, the elderly population, is fifteen percent of the national population, or about 39,000,000. This number does not include the age group from forty-five to sixty-five. The University of Hawaii Center on Aging has determined that as one reaches this age group, retirement and medical planning becomes increasingly more important. This group should be very interested in our project as they approach the age of retirement due to its affordability and on-site medical facilities. The most recent information from the report by the Executive Office on Aging, Aging in Hawaii, shows Hawaii to have an elderly population of approximately 200,000 and growing. Studies indicate that a major segment of this population currently own their homes, which could be used for equity trade-ins to purchase homes in our project. The rest of the population has indicated a desire to own their own home and would be able to handle a mortgage on their fixed income. There are government programs from the Office of Housing Assistance, as well as five or six other departments, that will provide financial assistance. CCI will insure that this information is available to prospective owners. The lack of available obtainable housing along with the aging of our population presents a challenge to the housing construction industry and to governmental agencies. We intend to meet this challenge and feel that we will provide an excellent product that is well suited to the needs of the people of Hawaii.
Agro-Forest We are planning an agro-forest, a tree farm to be started within the boundaries as shown on our preliminary site plan and will use approximately three hundred acres for the farm and interplanting, which is to return approximately seven million after the first cutting of trees in the first five years. At this point, the trees will grow to eighteen to twenty -four feet and will be thinned by cutting every other tree and leaving every other tree to grow for another five years. The return after the second cutting is over one hundred and ninety million and with inter-planting, the return will be an additional one hundred million, for a total of two hundred and ninety million. The tree that were not cut the first time will be taken at the ten year point and will be at fifty to eighty feet. We are designing the agro-forest to be serviced with minor, if any inconvenience to our residents and will only be cut once every five years, a small price to pay for such a large value. Regular service will be provided to insure the fullest growth of the trees.
We are looking at providing fee free condominiums and the return can be used to service our residents in many other methods, including the performing arts, free transportation systems, golf course fees, which will be reciprocal with the adjacent and neighboring resort hotel golf courses and ahost of other benefits.
Expenditures
Although we intend to develop the Puako site at a later date, we include the
medical facilities and the assisted care and extended care facilities in our
narrative, but we are only concerned with the first three phases of Ouli and
will call this the first increment of the complete development.
We are planning to develop there increments of housing, the first a 63
acres, the second at 70 acres and the third at 24 acres. We have researched
the cost of construction on the Big Island and found that we can produce our
units at approximately fifty dollars a square foot and will use that number
to develop our preliminary costs and profits. We are aware that there will
be a few changes, depending on the final count, but for initial purposes we
will use the numbers below as our first input.
First phase of Ouli:
63 acres will generate 189 units
189 units X $60,000 per unit = $11,340,000
Retail of units = $23,625,000
result of sales = $12,285,000
Second phase of Ouli: 70 acres x3 units per acre 210 units X $60,000 per unit = $12,600,000 Retail of units = $26,250,000 result of sales = $13,650,000
Third phase of Ouli:
24 acres
x3 units per acre
72 units X $60,000 per unit = $4,320,000
Retail of units = $9,000,000
result of sales= $4,680,000
Total cost and results from sales: total cost of construction = $28,620,000 site work and infrastructure = $5,000,000 total result of sales =$30,615,000, read profit
We would like to ask for an infusion of approximately twenty million dollars
to acquire the site, finalize and update approvals and to start
infrastructure and to generate $30,615,000 Million profit from sales before
If this seems like a small return for our funding, then we shooed look at
the business plan for Puako Newtown, which is somewhat larger and will not
include the acquisition which is at $10,000,000 for the two sites, Ouli and
Puako. As mentioned before, Puako will be the site of our "planned 240 unit
retirement villages", with assisted care and extended care facilities,
traditional hospital and alternative medical, to serve the community and the
resident of Ouli and the Puako Newtown
Want to learn about OUR
Entrepreneurs' University!!
Want to learn about OUR
Entrepreneurs' High School?!!
Want to learn about
Paradise City, OUR Hawaiian retirement community project?!
Want to learn
about OUR Entrepreneurs' Center for inventors and investors and physicians?
Want to learn about the
Cinco De Mayo from a new perspective?!!
Thomas Summons, President, Community Concepts, Inc & The Architectural Builders Group, Inc Phone:(808)982-5802 WEB DESIGNER K Kemper, Entrepreneurial Consulting, Inc.