Developing land in Northern California

[Andrew Jones]

This is a strange one and it's flirting with paramedical services over real estate, but any feedback would be appreciated.  This idea came to me recently as we are struggling on finding an appropriate facility to care for my father (he has Alzheimer's).  The money is not the problem, he has a long term care policy that will pay $330 per day for the rest of his life plus they sold their 6 bedroom home in the SF bay area, but we cannot get a private bedroom in a memory care ward.  The facility he's in now charges $5000 per month for a private on bed plus medical expenses and move in fees (totaling around $6,500-10,000 per month)...there is so much demand at this price point that we are wait listed at three different facilities.

Then I remembered seeing this news bit about this enclosed town that the Dutch built:

http://abcnews.go.com/Health/AlzheimersCommunity/a...

Basically they can live relatively normal lives in a gated town as if they were living at home while still being safe as if they were locked up in a facility.  

The medical and legal stuff I'm working on with a care giving company, but the actual development of a parcel is out of my depth at the moment.  I'd need to acquire/build the following (local zoning and permitting allowing):

-A 10-15 acre parcel

-Main gated entrance with office building nurse's station and leasing offices

-Possibly a second gated entrance at the opposite end for emergency services

-A common area with garden surrounded by a circle of buildings including a dining hall, cafe, "office building" (fake offices with toy phones, etc), small movie theater and a rec center

-A large, two story apartment building with medical facility (for those with late stage conditions)

-Two small "suburbs" of tiny homes for higher functioning residents (stand alone studio apartments with no kitchen for safety reasons).  Most likely 200sq ft pre fab structures that can be finished out.  

The big questions (assuming this can be built legally in my area) is how to figure out the amount of capital I'd need to raise to develop the land and what I should look for in a lot of land to do this.  I'm sure I'm missing information and missed some important questions so feel free to chime in.

[Eriverto Espinoza]

@Andrew Jones - Andrew, my advice would be to perform a feasibility study. To do so, the market would have to be studied to find an adequate piece of land that would facilitate an entitlement approval from that jurisdiction. At this point, it is extremely difficult to access what the capital requirements will be since there is no tangible development proposed to give an idea of what costs we’re looking at. Once a development is conceptualized and proposed, they may be sent out to potential builders who can put a price tag on construction costs. In terms of soft costs that would come before that, a conceptual design has to be completed by an architect to them get an idea of how much engineers will charge for their services and how much entitlement and permitting fees that are applicable within that jurisdiction will cost. In summary, a closer investigation into the land costs, soft costs and hard costs need to be uncovered to give a better idea what the capital requirements will be. I can potential help you with a feasibility study.