Understanding The Full Cost Of Our Island Home

To the editor: As Nantucket voters prepare for Annual Town Meeting, it is important that everyone clearly understands the full financial picture of the Our Island Home (OIH) project and what a “yes” vote truly means.

The request before voters is significant: $119 million at this Town Meeting, contributing to a total projected cost of $137 million for the new facility. To put that in context, Nantucket’s entire annual municipal budget is approximately $170 million. This is one of the largest capital commitments the Town has ever considered.

But the building cost is only part of the story.

The existing OIH facility already operates at a deficit of approximately $4.9 million per year—a number that continues to rise. That deficit is funded by the taxpayers. As costs increase, those impacts do not stay isolated—they ripple through Nantucket’s broader economy.

Higher municipal spending leads to higher property taxes. Higher property taxes translate into higher rents for tenants and increased costs for local businesses. Commercial properties, which do not benefit from residential exemptions, can feel these impacts even more directly. Over time, these pressures affect affordability, small businesses, and the overall economic balance of the island.

Equally important is what comes next.

The Town has completed a financial pro forma for the new OIH facility, and it indicates that this is not a one-time decision. Within approximately seven years, voters are expected to be asked again to approve additional funding to support ongoing operating losses as they increase from $14MM annually to $18MM annually. In other words, the vote at this Town Meeting is not the end of the financial commitment, it is the beginning of an on-going long-term obligation.

This is not an argument for or against the project. It is simply a call for clarity.

Voters deserve to understand that they are being asked to approve both a major upfront capital expense and a future series of financial decisions that will directly impact taxes, affordability, rents, and the local economy.

Town Meeting works best when voters are fully informed. Whatever your position, it is critical to go into this decision with a clear understanding of both the immediate cost and the long-term financial implications.

Respectfully,
Kit Murphy