Naples Comprehensive Health is planning a 250-unit multifamily apartment development off of Immokalee Road to serve as workforce housing for some of the health care system’s more than 4,000 employees.
Mara Hammond, NCH chief impact officer, made the announcement during remarks at an April 9 Newsmakers luncheon hosted by the Press Club of Southwest Florida.
Hammond said the system received a $3.5 million gift from Naples philanthropists Jeff and Judy Henley to cover costs associated with the development, architectural design, engineering and construction plans for the workforce housing units on land behind the NCH Business Center at 1100 Immokalee Road.
NCH is the largest nongovernmental employer in Collier County.
Mara Hammond
During her presentation about advances being made by NCH in treatment areas for heart and stroke, women and children, orthopedics and cancer, Hammond said one of the system’s biggest challenges is the high cost of living in Collier County and what that means for attracting and retaining its workforce.
She said 30% of the NCH workforce, including vendors, is driving more than an hour each way to work because they can’t afford to live in Naples — where rent has increased by 50% over the last two years — resulting in more than $88 million in payroll leaving Collier County.
“There have been a lot of things proposed by the county, by the city, by industry and others who say, ‘We’ve got to do something about it,’” Hammond said. “Essential workers, teachers, first responders, health care workers, hospitality —these are all the people that make Naples the No. 1 place to live.
“And unfortunately, we’re at a point where I think companies and organizations are having to take this on themselves because there hasn’t been a successful collaborative effort to really effect the kind of change needed around workforce housing.”
Hammond said that when it comes to recruiting top medical talent, the cost of living can become an issue.
“We’re currently trying to recruit another heart failure specialist,” she said. “Our challenge has been the two we’ve interviewed and offered employment to basically said that the cost of living is too high. And as a nonprofit health system, it’s really hard for us to try and meet their compensation they’re asking for when we don’t necessarily have that kind of liquidity and funding that a for-profit organization might have.”
Hammond said the 250-unit NCH housing development will be built on acreage behind the building the system bought several years ago on Immokalee Road near Arthrex headquarters.
She said the system is working with Naples-based MHK Architecture on plans for the development of the rental units that will be offered at a “substantially reduced rate” for the NCH workforce. Details on rental costs for the units were not available at press time.
Total estimated cost for the project is $65 million to $70 million, and Hammond said NCH will be seeking public financing to complete the project after the Henleys’ $3.5 million gift covers the costs leading up to construction.
“NCH does not want to be a landlord and does not want to be a developer,” she said. “We are likely going to place it in its own [Limited Liability Company] and seek public financing because it will have a return. It will still be under the NHC umbrella, but we will be looking for a management partner because, again, we don’t want to be in that.”
While the initial phase of the project will be 250 one-, two- and three-bedroom units, Hammond said an initial assessment showed it could grow to 400 or 500 units on the site.
As for a timeline, Hammond said NCH is working on the necessary permitting and has already completed a lot of the preliminary work in terms of water assessment and other necessary steps.
“[Jeff and Judy Henley] have been at the table with the architects for the last several months, so likely looking at opening in two years,” she said.
According to information from the Collier County Community and Human Services Division — Housing Operations, the median rent in Collier County is $2,230 and market rent is $3,922.
And according to the 2022 Florida Department of Economic Opportunity, Occupational Employment Statistics and Wages, 35% of the jobs in Collier County pay less than $35,000 per year, with 58% paying less than $45,000 per year. Someone earning a $45,000 annual salary should be able to afford a housing payment of $1,125 per month, the report states.