Financing for Scott-Farrar expansion being finalized
14 months of construction could get started in September
PETERBOROUGH — Construction on the new 73,000-square-foot Scott-Farrar Home on Elm Street could start in late September once a final round of financing is approved.
On July 29, the Peterborough Select Board will be holding a public hearing on Scott-Farrar’s application for a $475,000 C0mmunity Development Block Grant loan, which would provide the final funding needed to start construction, according to Eldon Munson, a member of the Board of Trustees for the adult-care facility.
“Our current plan to complete all the financing in August,” Munson said last week. “It’s taken a long time. We hope to close on all our loans by early September and begin construction at the end of the month.”
In 2013, after a series of Planning Board and Zoning Board of Adjustment meetings, Scott-Farrar received approval for a new building, which will have 63 units — 20 in an assisted living setting, 18 for people diagnosed with dementia and 25 independent living apartments.
The current building on Elm Street, which dates to 1957, will be torn down after the new building is completed and 16 garage spaces will be built on that site.
Munson said the overall financing for the project is about $14.4 million, with most of the money split between loans available through the U.S. Department of Agriculture’s Rural Development program and a commercial loan from Northway Bank in Concord.
The Community Development Block Grant loan will help cover the cost of building the independent living units, Munson said, and is being obtained through the Keene-based Monadnock Economic Development Corporation, a nonprofit organization.
“It is based on the creation of jobs in the community,” he said. “We’ll be bringing on board a number of new employees, so we qualify for this loan. It gave us the last boost we needed.”
Jack Dugan of the Monadnock Economic Development Corporation said CDBG loans have several requirements.
“One of the most important is that the project must create new jobs,” Dugan said last week. “There have to be at least 25 jobs, most to be filled by people from low- to moderate-income homes.”
The process for obtaining the CDBG loan will begin with the July 29 public hearing. Dugan said if the town agrees to participate, the loan would be granted to the town of Peterborough, which would then subgrant it to the Monadnock Economic Development Corporation, which would loan the money to Scott-Farrar.
“The town doesn’t underwrite or administer the loan,” Dugan said. “The town basically looks and decides if this is a community development project that will be good for the town. From what we can see, [Scott-Farrar] meets all the criteria. It’s going to create jobs and represents a significant benefit to Peterborough.”
Munson said Scott-Farrar has a contract pending with MacMillan Construction of Keene, which he said will be signed as soon as all the funding is in place.
“We have a 14-month timetable for construction,” he said. “If we go into the ground in September, we should be ready to open the new building in November 2015.”
Dave Anderson can be reached at 924-7172, ext. 233 or firstname.lastname@example.org.