Purchase of the VNA building

1
Purchase of the VNA building

• By Dukes County
• for Senior Services

2

• Why? To house the Supportive Day Program
• The Supportive Day Program provides for health
  and well-being of very vulnerable people while
  allowing for needed respite of caregivers. It has
  always been a municipally supported program. It
  is similar to 27 other programs throughout the
  Commonwealth, which are located in dedicated
  spaces within Senior Centers and community
  buildings.
• The program is offered in collaboration with all
  four Councils on Aging. The number of clients in
  the Supportive Day Program with early to
  mid-stage Alzheimers disease has doubled in the
  last years and will continue to grow. The needs
  of families dealing with Alzheimers disease (or
  other dementia) are unique and long term. These
  individuals require trained staff and specially
  designed programs. None of the island towns
  Councils on Aging can provide the services with
  the current staff.
•  
• Currently the Supportive Day Program operates out
  of two buildings (Edgartown and Tisbury Senior
  Centers) that are inadequate in the amount of
  space and function of that space to meet the
  needs of the Program (there is often a waiting
  list). Not having a single, permanent location
  severely impairs the ability to provide quality
  program and contributes to client confusion and
  staff burn-out.
•  
• None of the Senior Centers can provide a
  dedicated adequate space for the Supportive Day
  Program.
•  
• Why now?
• MV Center for Living (a non-profit organization)
  that operates the Senior Day Program for the
  towns has been looking for a permanent location
  for 7 years with little or no support from town
  leaders and with no viable options found after
  diligent search and investigation of all
  opportunities that presented themselves. Finally
  the town leaders requested that the County assist
  in finding a solution. After analyses of cost of
  building a new facility and requesting proposal
  to purchase any building that would fit the
  requirements of the program, purchase of the VNA
  building was identified as viable solution,
  financially and functionally.
• There is no other similar building available for
  purchase and new facility of current minimum
  needed space (3,500 sq ft) would be just as
  expensive. If the solutions is put off it will
  only get more expensive in the future to address
  the need.
• With projections of the aging population to rise
  over the next 20 years the demand for services
  will increase and additional space will be
  needed. This building can meet the current needs
  and has potential for expanding the services to
  meet the future needs.
•  
• What will happen if the building is not
  purchased?
• The program will continue to be provided to
  limited number of clients in inadequate and
  inappropriate spaces. There is no alternative
  plan to address the current and future needs.
•  

3
Information about the building

• 29 Breakdown Lane, Tisbury
• 0.48 acres zoning business B-2
• Two story metal frame office building
• 7,483 sq ft (5,623 sq ft -first floor)
• Currently owned by the Edgartown National Bank
• Appraisals
• Marthas Vineyard Appraisal - 1,650,000
  (2/20/2014)
• Clancy Appraisal Co. - 1,375,000 (6/18/14)
• Original proposal to sell 1,625,000
• Current proposal to sell 1,400,000 plus
  included would be at no cost all furniture,
  fixtures and equipment as requested valued at
  54,000

4
Building Improvements

• There will be improvements needed to make the
  building comply with states regulations for the
  supportive day program (install additional
  handicapped bathroom approx. 45K) and local
  Board of Health regulations (install grease trap
  or interceptor and a commercial grade dishwasher)
  to be able to serve food to clients.
• In order for the space to be functional
  additional two windows, patio doors, room divider
  and half-wall in the kitchen would be installed
  (approx. 60K).
• The energy audit (RISE Engineering) is proposing
  installing additional insulation to the ceiling,
  which would reduce the electrical and propane
  cost. The cost of roof installation would be most
  likely eligible for 100 incentive from the Cape
  Light Compact as Energy Conservation Measure.

5
Financing

• There is a warrant article in each town to
  authorize County to raise up to 1.6M by sale of
  bonds and for the debt to be divided among the
  towns based on the 50/50 formula simple
  majority vote is needed in each town
• At this point there is consensus for a 10-year
  bond structure
• First payment will be due on May 1, 2016
• Support of the leaders in all six towns is
  essential to gain the voters support in all
  towns.

6

BOND Formula Town Share
50/50 1,600,000
Aquinnah 3.25 52,000.00
Chilmark 11.09 177,440.00
Edgartown 30.82 493,120.00
Oak Bluffs 20.96 335,360.00
Tisbury 18.85 301,600.00
West Tisbury 15.03 240,480.00
100.00 1,600,000.00

BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest BOND FOR 1,600,000 (NOT TAX-EXEMPT) - with projected interest
10y bond w interest
50/50 1,938,400.00
Aquinnah 3.25   62,998.00
Chilmark 11.09   214,968.56
Edgartown 30.82   597,414.88
Oak Bluffs 20.96   406,288.64
Tisbury 18.85   365,388.40
West Tisbury 15.03   291,341.52

100.00 1,938,400.00
Interest 338,400.00


ESTIMATED FIRST YEAR PAYMENT ESTIMATED FIRST YEAR PAYMENT ESTIMATED FIRST YEAR PAYMENT ESTIMATED FIRST YEAR PAYMENT
Formula 10 year bond 4 interest on 1.6M 4 interest on 1.6M
50/50 160,000 64,000.00 Total 1st year
Aquinnah 3.25 5,200.00 2,080.00 7,280.00
Chilmark 11.09 17,744.00 7,097.60 24,841.60
Edgartown 30.82 49,312.00 19,724.80 69,036.80
Oak Bluffs 20.96 33,536.00 13,414.40 46,950.40
Tisbury 18.85 30,160.00 12,064.00 42,224.00
West Tisbury 15.03 24,048.00 9,619.20 33,667.20
100.00 160,000.00 64,000.00 224,000.00

7
Inter-municipal Agreement for Purchase

• Each Town must enter into an inter-municipal
  agreement with the County pursuant to the
  provisions of the Mass General Laws Chapter 40,
  Section 4A.
• Each Town must authorize the borrowing by vote of
  annual or special town meeting no later than
  December 31, 2015.
• County shall lease the excess space within the
  building, not needed for operation of the Center
  at fair rental value and apply rents received to
  reduce the maintenance cost of the building,
  provided further, that the County may, with the
  approval of the County Advisory Board, make such
  space available for less than fair value, or
  without a monetary consideration, for use by a
  department, board or committee of the County or
  of one of the Towns, or by a non-for-profit
  corporation.
• In the event the County is abolished or ceases to
  exist for any reason, or in the event that the
  County ceases to operate the Center for a period
  of sixty consecutive days, the County shall
  transfer the Building by quitclaim deed to the
  Towns nomine as set forth in written
  instructions approved by the boards of selectmen
  of each of the Towns, or , in the absence of such
  instructions, to all of the Towns as tenants in
  common, with individual fractional percentage
  ownership allocated in proportion to each Towns
  contribution to debt service in accordance with
  the formula established (the 50/50 formula).