Long Prairie Project Investors, LLC is raising EB-5 capital to fund the development and construction of a residential mental health and substance use disorder facility, which will be branded as Wise Path Recovery Center—Long Prairie (the "Project"). Once completed, the Project will operate an American Society of Addiction Medicine (ASAM) 3.5 level of care residential recovery center with a level 3.7 detox facility.
Troy Hoekstra (the "Developer"), will renovate an existing lodge and construct two new buildings on the property of the Project. The renovation will update the lodge to create group rooms for counseling, office space for employees, and controlled access for privacy and safety. Interior finishings will also be upgraded. The new construction will add a 36-bed residential facility and a 12-bed detox facility, which will be built adjacent to the existing lodge. The facility is scheduled to open in January 2024.
The operator of the facility will be Ascension Recovery Services (the "Operator" or “Ascension RS”), the industry leader in developing comprehensive and fully integrated behavioral health systems that are equipped to treat people with mental health and substance use disorder issues. Ascension RS will also be responsible for the planning, development, implementation, and management of the fully integrated mental health and substance use disorder programs to be offered.
The Project is situated in Long Prairie, Minnesota, which is categorized as a rural target-employment area under the EB-5 regulations. For a project to be considered as a rural area, it must be located outside a metropolitan statistical area ("MSA") and have a population of fewer than 20,000.
Investors in an EB-5 rural project are eligible for a reduced investment amount of $800,000 (the "Capital Contribution"). Moreover, they will be given priority processing of their EB-5 application and will have access to reserved visas with no waiting period (at present).
The addiction epidemic is now acknowledged as a "humanitarian crisis of national interest," with over 100,000 overdose deaths occurring annually in the United States and the numbers continuing to rise. The United States (the "U.S.") government, at all levels, has recognized the severity of this national crisis. Due to the critical nature of substance abuse programs and treatment facilities, the Project may qualify as a national interest investment. Investors may request expedited approval on their I-526E petition request.
The Project aims to tackle the concerning increase in drug overdose deaths and the skyrocketing number of addiction patients who require immediate mental health and substance use disorder treatment. According to the White House, the U.S. witnessed over 100,000 drug overdose deaths from April 2020 to April 2021, which is a tragic outcome of a more potent supply of drugs and the destabilizing effects of the COVID-19 pandemic. Substance abuse has become a crisis in the country, and the COVID-19 isolation and unemployment have worsened the situation, leading to an increased need and demand for the services provided by the Project.
The Project is being undertaken by a highly experienced management team consisting of experts in various specialized fields. Douglas M. Leech, the founder of Ascension RS, leads the operational team. Ascension RS is the national leader in developing comprehensive behavioral health systems that provide the highest quality clinical care with a sustainable business model. The team at Ascension RS is composed of highly qualified individuals.
The Project is sponsored by Smith Great Plains Regional Center, LLC, which is a part of the EB-5 Coast to Coast family of USCIS-sponsored regional centers. Steve Smith leads this team, which has sponsored numerous other addiction treatment centers, granting investors expedited processing.
According to the econometric study, the Project is expected to create 169 jobs, resulting in an excess of 69 jobs or approximately a 69% job cushion.
Previous Capital Raise
Steve Smith, the owner of NCE Manager and Regional Center, has successfully developed and operated several additional treatment centers across the United States (the "U.S.") using EB-5 capital. The investors who have invested in these offerings have received I-526 approvals and expedited processing.