STATE OF FLORIDA

DIVISION OF ADMINISTRATIVE HEARINGS

PLEASANT REALTY COMPANY, )

)

Petitioner, )

)

vs. ) CASE NO. 79-686

)

DEPARTMENT OF HEALTH AND )

REHABILITATIVE SERVICES, )

)

Respondent. )

)

RECOMMENDED ORDER

Pursuant to notice a hearing was held before Delphene C. Strickland, assigned Hearing Officer of the Division of Administrative Hearings, on Tuesday, April 17, 1979, in Room 104 of the Collins Building in Tallahassee, Florida.

APPEARANCES

For Petitioner: Paul J. DePalma, Vice President

Pleasant Realty Company

First National Plaza, Suite 600 Dayton, Ohio 45401

For Respondent: Eric J. Haugdahl, Esquire

Department of HRS

1323 Winewood Boulevard Building One, Suite 406 Tallahassee, Florida 32301

ISSUE

Whether Certificate of Need #785, issued to the Petitioner, should be revoked or whether a six months' extension should be granted.

FINDINGS OF FACT

1. On February 13, 1978, the Office of Community Medical Facilities issued a Certificate of Need to the Pleasant Realty Company for the development of a 120-bed nursing home to be constructed in Dunellon, Pinellas County, Florida, at a cost of $1,200,000.00.

   
   

2. A request for an extension was made by the Petitioner by letter dated January 10, 1979, and a status report was requested by Respondent by letter dated January 15, 1979.

   
   

3. A Certificate of Need terminates one year after the date of issuance unless construction has commenced or a six months' extension is granted. One year after the date of issuance, February 12, 1979, no construction had begun, and the Respondent, Department of Health and Rehabilitative Services, issued an

   administrative complaint dated February 16, 1979, against the Petitioner, notifying it of Respondent's intention to revoke said certificate. An administrative hearing was requested.

   
   

4. The Administrative Complaint notified the Petitioner that Respondent intended to revoke its Certificate, alleging that Petitioner violated the provisions of Section 381.494(6)(f), Florida Statutes, and the provisions of Rule 10-5.13, Florida Administrative Code, in that:

   
   

   1. The one year's permit expired on February 12, 1979;

   2. The facility was not under construction at that date;

   3. A site was not firmly secured;

   4. No firm secured financing;

   5. Completed final construction plans were not submitted for review or approval; and

   6. No report was submitted.

      
      

5. Petitioner did not have a site for its proposed facility at the time the Certificate of Need was issued, and no site has been acquired or construction started, although Petitioner has an option to purchase a site.

   
   

6. A rezoning exception has been granted for the desired piece of real property, but the exception is being contested by a motion for re-hearing scheduled for June 12, 1979, at 10:00 a.m.

   
   

7. Financing has not yet been secured, although a financial institution has indicated its ability to produce the necessary capitalization for the project.

   
   

8. Schematic, preliminary and construction documents have not been submitted, although a site plan dated October 18, 1978, has been prepared.

   
   

9. The plans are required to be submitted in three stages, and review of plans is a lengthy process. No plans have been submitted for review.

   
   

10. Petitioner has endeavored to find a site and obtain financing, and has submitted drawings, although not the schematic, preliminary and construction documents required. It has spent a significant amount of money planning for the project.

    
    

11. Petitioner has not secured the real estate, developed construction plans, or made final arrangements for financing, noting it was "prudent business practice" not to acquire the proposed site or make a large capital investment for construction drawings for the nursing home until it was sure of the requested extension.

    
    

    CONCLUSIONS OF LAW

    
    

12. Section 381.494 Health-related projects; certificate of need.-- provides in pertinent part:

    
    

    1. DUTIES AND RESPONSIBILITIES OF DEPARTMENT; RULES AND REGULATIONS.--

       1. The department shall be designated as the single state agency to issue or deny

    certificates of need in accordance with present and future federal and state statutes.

    (f) A certificate of need shall terminate 1 year after the date of issuance, unless the applicant has commenced construction, if the project provides for construction or incurred an enforceable capital expenditure commitment for projects not involving construction, or unless the certificate of need validity period is extended by the department for an additional period of up to 6 months, upon showing of good cause by the applicant for the extension.

    
    

13. Rule 10-5.13 Continuing Effects of DPA Decision., Florida Administrative Code, was effective January 1, 1977, and provides in pertinent part:

    
    

    1. An applicant desiring a 6 month validity extension to a Certificate of Need or Section 1122 approved capital expenditure should submit such request to the DPA providing documentation of good cause upon which such request is based. Criteria against which the DPA shall consider requests for such extensions are:

       1. If applicable, has a site been firmly secured?

       2. Has firm financing been secured?

       3. Have final construction plans for the proposed project been submitted for review by State licensing authorities (Office of Licensure and Certification)?

       4. Can it reasonably be expected that the project can actually be under construction within the requested extension time?

    
    

14. The Petitioner has not complied with any of the requirements of the foregoing statute or rule, and good cause has not been shown.

RECOMMENDATION

Deny the request for extension of the Certificate, and revoke Certificate of Need #785 issued Petitioner.

DONE and ORDERED this 4th day of June, 1979, in Tallahassee, Leon County, Florida.

DELPHENE C. STRICKLAND

Hearing Officer

Division of Administrative Hearings Room 101, Collins Building Tallahassee, Florida 32301

(904) 488-9675

Filed with the Clerk of the Division of Administrative Hearings this 4th day of June, 1979.

COPIES FURNISHED:

Eric J. Haugdahl, Esquire Department of HRS

1323 Winewood Boulevard Building One, Suite 406 Tallahassee, Florida 32301

Paul J. DePalma, Vice President Pleasant Realty Company

First National Plaza, Suite 600 Dayton, Ohio 45401

Docket for Case No: 79-000686

Orders for Case No: 79-000686