January 8, 2019

Cromwell retirement complex plots March groundbreaking on $48M expansion

Photo | Covenant Village
Photo | Covenant Village
A rendering of Covenant Village of Cromwell following its 54-unit expansion.
Photo | Covenant Village
Covenant Village of Cromwell is adding on another 34,000 square feet of common space.

A Cromwell retirement community is moving forward with a $48 million expansion that aims to meet the needs of Connecticut's steadily aging population.

The 220-unit Covenant Village of Cromwell is slated to build 54 new units beginning in March with an expected completion in fall 2020, a spokesman said Tuesday.

Under the plans, Covenant Village, a faith-based Christian community, will increase its current 38-acre campus by 25 percent, adding 76,000 square feet of housing and 34,000 square feet of common space.

The expansion will be funded entirely through tax-exempt bonds from the Connecticut Health and Educational Facilities Authority (CHEFA), which helps nonprofit organizations gain access to low-cost debt capital through tax-exempt public/private debt.

Town officials greenlit the Covenant Village's expansion at 52 Missionary Road in late December.

Covenant Village has already pre-sold about 87 percent of the new units, the spokesman said.

The promising pre-sale totals underscore the growing need for independent, assisted-living, and memory-care facilities in Connecticut as the state in September was listed as the sixth oldest in the country.

According to a report by S&P Global Ratings, the state's median age was 40.9 in 2017, almost three years higher than the U.S. median.

Founded in 1964, the Cromwell Complex, owned by Covenant Retirement Communities Inc., houses one-bedroom, two-bedroom, deluxe apartments, patio homes and courtyard cottages.

Covenant Village offers three levels of care, including independent, personal and skilled nursing care, such as rehabilitation and therapy services.

The complex had 350 residents and 230 employees in Cromwell as of Dec. 2017, according to its website.

Covenant Village, Cromwell's largest taxpayer, is paying the town $659,724 in taxes for fiscal year 2017-18, according to the town assessor's office. The value of the taxable property on Missionary Road is worth over $31.8 million, the town said.

Covenant Retirement Communities Inc. operates 16 other communities in Illinois, Michigan, Florida, Minnesota, Oklahoma, Washington, Colorado and California.

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