A former Cape Elizabeth nursing home that was twice shut down after violating several state regulations is on its way to being converted into senior apartments, both ridding the town of the problematic home and addressing the need for more senior housing.

A public hearing for the Crescent Beach Senior Living facility, on Scott Dyer Road, will be held at the planning board meeting at 7 p.m. on Tuesday in the town hall chamber, and construction is scheduled to begin in spring 2008. While the two-story wing with 55 beds will be renovated and continued to be used for assisted living, the former single-story nursing home will be turned into two floors containing 40 apartments for seniors who are still living independently. The cost for the project is estimated at $9 million to $10 million.

The developer is asking to change the zoning for the project so that more apartments can be built on the property than what is currently allowed. The apartments will be mostly studios and single-bedroom units, with a few two-bedroom apartments, as well, according to Albert Castaneda, vice president of land development for Canyon Creek Development. If all goes as planned, he said, residents will be able to move in by summer 2009. Castaneda said Cape Elizabeth’s demographics drew the Oregon-based developers to the town.

“We look for needs in the community,” he said, and senior housing is just what Cape Elizabeth’s latest comprehensive plan calls for.

“There’s a need for it in town,” said Town Council Chairman Paul McKenney. “There seem to be more retirees moving into the area.”

The comprehensive plan notes the town’s aging population as a primary reason for making more senior housing available. Though there is also a need for more affordable housing, Castaneda said the price of renting an apartment will be comparable to the cost of living in the rest of the town. Rents will vary, however, based on what amenities, like laundry services and meal plans, the residents decide to use.

All residents will be able to use the ice cream parlor, hair salon and activity rooms at the facility, which will be run by Sunwest Management, a company affiliated with Canyon Creek, which runs over 250 assisted living facilities around the country.

Sunwest will be the third group in five years to take over the building, which was previously known as Haven Health Care and, before that, the Viking Nursing Home.

In 2002, a patient at the Viking Nursing Home wandered from the facility and drowned. Haven Health Care subsequently took over the management, though Viking still owned the home. One year later, a number of patients were found with bedsores. When the problem was not solved, but only worsened, within two weeks – the time alloted by the Maine Department of Health and Human Services – Haven Health Care assumed ownership of the facility.

But that wasn’t the end of the home’s encounters with the state. In May 2005, a patient fell and suffered a broken pelvis. The incident was not reported by on-duty staff to the following shift, and it wasn’t until two days later that the patient’s fall was reported to a physician or the family. As a result, the home was ordered by the state to find a new manager. Instead, Haven Health Care closed the nursing home in August 2005, forcing 46 residents to relocate.

In December 2006, Canyon Creek came to the town with the proposal to rebuild the nursing home into senior apartments. According to Castaneda, a skilled nursing home is a specialized need, and, based on the demographics of the town, the change in use to independent living apartments “makes more sense.”

“Having a nursing home is fine, but not one that has significant issues,” McKenney said. Whatever tenant occupies the building, he said, it is important that the residents are well cared for.

“In Cape Elizabeth, we really value quality,” said McKenney. As long as the quality is retained, he said, it is important that the facility be in use, contributing to the tax-base of the town.

According to Castaneda, Canyon Creek hopes to see seniors from within the community move into the apartments. Between the activities offered and the manicured open spaces, Castaneda said, the developer aims to provide opportunities for the residents to interact with each other and with their family members outside of their personal living spaces.

“We want to be part of the community,” Castaneda said. “It’s a beautiful community.”

Developer sees new life for Cape nursing home