A Sign of the Times

When Valley Ridge Shopping Center was built in the 1960's, the Beatles were tearing up the airwaves and a new, vibrant youth culture was emerging in the post-War boom. This month, the mall will be torn down to build a $21 million senior housing complex to ease the baby boomers into their golden years.

The fate of the the mall is emblematic of a dramatic demographic shift. A report by the Minnesota State Demographer's Office predicts that the number of elderly people in Minnesota will double by 2035. The trend will be especially pronounced in suburban counties. 

Currently, 12.2 percent of Minnesota’s population is 65 plus, according to a report by the Minnesota Department of Human Services titled “Status of Long-Term Care in Minnesota, 2010.”  

So far, Minnesota's senior population has grown at a relatively slow pace due to the migration of retirees to warmer climates and low birth rates during the Great Depression, when the majority of today's elderly were born. 

2011 marks the beginning of an onslaught: This year the first round of baby boomers (born 1946 to 1964) will enter retirement age. From here on out, the number of seniors in Minnesota is projected to increase 40 percent. The rest of the population — children, young adults and workers — will increase just 4 percent over that same period.

The trend will begin to reverse around 2060, the authors of the report wrote, when most of the boomers will have died.

According to DHS, the shift will have a “profound impact” on the demand for assisted living, nursing homes and other forms of senior housing.

In the short-term, however, this trend will not be immediately evident, said John Mehrkens, vice president for development with Roseville-based Senior Housing Partners, the development arm of Presbyterian Homes and Services. The Valley Ridge project is a joint effort between Merhkens' organization and the Dakota County Community Development Agency. 

"Interestingly enough, the seniors we're serving are in a very slight decline, which is a little unusual," Mehrkens said. "The GI generation around during World War II is in a slight decline in terms of numbers. But in three to five years rapid growth will be coming."

The 140-unit Valley Ridge development anticipates the rush for affordable senior housing. At present, existing housing for seniors offers two extremes, Merhkens said: Very high-end accommodations or government-subsidized living. At present, there are few senior complexes that fall in between.

The Valley Ridge development is designed to fill that gap.

"The organizational structure between us and the CDA allowed for the project to obtain financing and grant dollars that wouldn't normally be available which will result in significantly lower costs to future residents," Merhkens said.

According a information submitted by the CDA, the Valley Ridge development will be financed through low-interest loans from the federal government, in the form of bonds stemming from President Barack Obama's stimulus bill. Other financial aid came in the form of grants from state and local entities.

These bonds will allow the CDA to offer a significantly lower rent to residents, said CDA Spokesperson Sara Swenson, a lifesaver for those living on small, fixed-incomes.

"On average our seniors make about $20,000 a year. About 30 percent of our households get income only from social security," Swenson said. "At Valley Ridge the fixed-rent for a one-bed room unity will be $558 and $682 for a two bed room. That is really low compared to what the average market rate is."

A typical two-bedroom apartment in Burnsville costs about $900 a month, Swenson said.

Furthermore, the development will offer more than one type of housing as residents progress into the twilight years: The facility will be designed to provide seniors with apartments where they can live independently, assisted living units for those who need increased medical care and a memory care unit for those who are suffering from Alzheimer's and dementia. 

Construction will begin in September. Merhkens and Swenson said the project will be completed in about 13 months. Anyone interested in the property should call 651-675-4516. Those who wish to inquire about memory care services should call 651-631-6403.