NEW LOCATION SOUGHT FOR REHAB CENTER

Review Process

Applications for centers must be reviewed by a panel of representatives
from the Kentucky Housing Corp., the Corrections Cabinet and the Governor's
Office for Local Development.

The panel will recommend choices to the governor.

Several other agencies plan to apply for the Recovery Kentucky grants to
build treatment centers for substance abusers. Among local groups:

Brighton Center, one of Northern Kentucky's largest social service
agencies, coupled with Boone County to apply to build a recovery center on
property owned by Gateway Community Technical College off Sam Neace Drive
in Boone County. The center would serve women.

Comprehend, Inc., a community mental health agency in Maysville is
partnering with Maysville and Mason County on an application for a recovery
center for men on vacant industrial land that the city owns near Maysville
Community and Technical College.

After a week of vehement neighborhood opposition to a 100-bed residential
drug recovery center in Latonia, it looks like the neighborhood has won.

Mac McArthur, director of the non-profit drug rehabilitation agency
Transitions Inc., announced Wednesday that he is searching for new
locations for the $3 million facility that could be part of Gov. Ernie
Fletcher's Recovery Kentucky program.

In March, the Kenton County Fiscal Court had agreed to lease Transitions a
parcel of county-owned land next to Rosedale Manor nursing home in a
residential section of Latonia. When neighbors and Covington city officials
learned of the plan, they packed public hearings and argued angrily against
putting the center so near homes, a school and the nursing home.

McArthur said he is contacting other Northern Kentucky communities about
potential sites and wants the public to help.

"If a lot of people are looking, our chances of finding something are
better," McArthur said.

Fletcher has promised to fund 10 residential recovery centers across the
state. The first round of applications will be considered in June. Each
application must include an assured site and must have a city or county
government as a co-applicant. Kenton County had been the co-applicant for
the Latonia site.

The decision to look beyond the Rosedale site came after McArthur met
Tuesday with Kenton County Judge-Executive Ralph Drees to talk about
possible new locations for the center.

"Judge Drees gave us some possibilities, and we're looking at them to see
if they meet our needs," McArthur said.

The center needs 21/2 acres on a bus route, he said.

"It could be rural, industrial. We're hoping to be in the three northern
counties (Boone, Campbell or Kenton), close to population centers.
Transportation is a big deal," he said.

"We'll talk to the county judges and see if there is some second best place
that will meet the requirements of the inspection team."

The new search is a direct response to the community opposition to the
Latonia location, McArthur said.

Residents voiced their opinions loudly at three community meetings and a
city commission meeting this month, saying the center would lower property
values and program participants could pose dangers to residents of Rosedale
Manor and students from nearby Latonia Elementary School.

Mayor Butch Callery had comments recorded at the last meeting Monday and
vowed to mail the recording to Gov. Fletcher, along with an official plea
to refuse the grant for that location. Fletcher launched the program in
January and must approve the grants.

"Community based programs have to form a positive relationship with the
community," McArthur said Wednesday.

"From the comments made in the past week, it's obvious people around
Rosedale have a lot of objections. They're serious in their concerns, so I
have to be serious about their concerns, too."

Although Transitions, Inc. is looking for other sites, it has not ruled out
the Latonia location entirely.

"We have an application prepared for the Rosedale site. If we can't find
anything else, we'll submit that," McArthur said.

But community opposition to that location could damage the application.

"Community support is definitely something we'll be looking at," said Mike
Townsend, supportive housing program coordinator at the housing
corporation. Townsend is in charge of initiating Recovery Kentucky and a
member of the panel that will decide who gets the grants.

"We want a community accepting of the program," said Townsend, who was
director of the state Division for Substance Abuse for 25 years. He came
out of retirement to help launch the new program.

The people in the new program "are turning their lives around," he said.
"Our experience is once they are in the community, they are the best
neighbors you can find, very sincere about giving back to the community
rather than taking."

Fletcher set aside $9.5 million in state funds to build 10 residential drug
and alcohol abuse recovery centers, each housing 100 people.

The centers will copy a model program in Louisville and be financed with
$2.5 million in federal low-income housing credits for construction.
Operations money includes $3 million from the state Department of
Corrections and $4 million in Community Development Block Grant funds.

The program goal is to have two residential centers - one for men and one
for women - in each congressional district.

The center Transitions is proposing would serve men. Brighton Center plans
to submit an application for a women's recovery center in Boone County.
Comprehend, Inc., a mental health agency in Maysville also is preparing an
application for a men's center there, which also is in the 4th
Congressional District.

"It is not out of the question that we would have three or more in a
congressional district if the need is there and we have a good
application," said Townsend. "We're encouraging (Transitions) to move
forward with their application."

The first round of applications will be reviewed in June, in time to award
crucial tax credits for construction by July 1, the deadline to award the
credits.

A second allocation of tax credits is expected to be available for 2006,
and applications for those will be accepted in August, said Townsend.

"Most programs are hoping to get in the first round of applications because
there is a possibility there won't be any money left in the second round,"
he said.

The panel has received four applications and is expecting 8-10 in the first
round.

McArthur said the 28,000-square-foot center would cost about $3 million and
take about a year to build.

The tax credits would be coupled with a mortgage to fund construction. The
center would include 35 efficiency apartments and dorm-type space.

McArthur said the best scenario would be to find a site that would accept
the center.

"When there are an awful lot of objections from an awful lot of people, the
neighborhood is always unsettled. The program is always unsettled. The
patients are always unsettled," he said.

"It would be better in a place where the community outside is looking for
ways to help the people succeed."