Is The New Our Island Home Too Expensive?

To the editor: Next month, Nantucket taxpayers will be asked to approve $100 million for a new Our Island Home skilled nursing facility. Understanding what Nantucket taxpayers will be committing to is essential as it will be the largest capital project in Nantucket's history.

When discussion began in 2017, the cost to build a new Our Island Home was $54 million. Today, it is $111 million. Add last week's announced tariffs to the already rising cost of construction materials, and the actual cost is anyone's guess. The Construction Manager at Risk for the proposed facility, Sky Construction, has an April 8th deadline for receiving the subcontract work bids. The Town and taxpayers should have more information once Sky releases the results of those bids.

The facility will provide housing for 45 residents in private rooms or up to 57 residents in a combination of singles and doubles. It will account for roughly 8.5% of the Nantucket Town budget. Annual principal and interest costs are estimated at ~$8.5 million for the next 25 years. In 2021, the Town voters approved an annual $5,000,000 operating override (with a yearly 2.5% increase) to cover the operating costs of OIH. So, $8.5 million for the build and $5.5 million for operating costs means $14 million per year will be spent by the Town to house at most 57 residents. The Town calculates the net present value of 25 years of costs for the facility to be just under $200 million.

If you have a residential exemption and your house is assessed at $2 million, your taxes will increase by $281 for the next twenty years.

Recently, enthusiastic supporters of a new Our Island Home began a capital campaign in partnership with the Community Foundation of Nantucket to raise private funds for the proposed facility. I encourage this growing group to build momentum and work towards realizing a private facility.

There is a need, but whether the Town of Nantucket should be underwriting this need is an open question that will be answered at the May 3, 2025, Town Meeting.

Nancy Moylan
Old Quidnet Milk Route