HOW MUCH WILL IT COST?

How much will the new Our Island Home cost to build?
Current estimate is $134,500,000, with $8.5 million of that already appropriated for design, permitting, and associated pre-construction activities. We continue to explore avenues to reduce the cost.

How much will impact my tax bill?
Property taxes will rise by approximately $0.16 per $1,000 of assessed value. The tax rate impact of an affirmative vote at Annual Town Meeting and Annual Town Election will mean the annual tax bill for a year-round property valued at $3,200,000 will increase by approximately $512 annually for 30 years.

How much does it cost to run Our Island Home?
The FY2026 operating budget is $10.7 million.

Why should we continue to fund such an operation?
Some families find themselves at a point where they are no longer capable financially, physically or emotionally to care for their loved ones at home. The decision for the Town to own and operate the facility was made long ago and reinforced by voters in subsequent years; first by approving a $5 million permanent operating override at the 2021 Annual Town Meeting (Article 15) and at the 2021 Annual Town Election (Question 1); second by approving $8.5 million for the design of a new facility at the 2022 Annual Town Meeting (Article 11) and Annual Town Election (Question #1).

Is there any chance of getting help with the cost from the state or federal government or from private donors?
As a municipally owned facility, OIH already receives reimbursement from the Commonwealth for Medicaid residents in the form of “CPE” (Certified Public Expenditures). CPE reimburses Our Island Home for certain expenditures of running the facility, usually about $1.5 million per year. There are no additional funds available for capital improvements or new construction; however, private donations are potentially acceptable.

Why is the new OIH so much more expensive than the new facility being built on the Vinyard (Navigator Homes)?
There are several reasons that contribute to the difference in cost, including:

• As a new OIH will be municipally owned, Massachusetts General Law requires following procurement procedures which add significant cost to the project.
• Mobilization costs such as material delivery and worker travel and lodging on Nantucket are significant and likely higher than Martha’s Vineyard.
• The cost estimates for the Vineyard project are based on a project that is several years ahead of where Nantucket is in its planning. With costs escalating every year, a direct cost comparison is probably not reliable.
• Upfront costs for environment-friendly energy solutions such as geothermal heating and cooling and roof-mounted solar system are significant. Over time costs will be recouped but they are “front-loaded” in the construction costs.
• Requirements to “Build with Nantucket in Mind”, and HDC requirement, add costs to the project.
• The new OIH cost model includes payments to the Residents of Sherburne Commons for the take -back of land and rebuilding its staff housing.
• The Vineyard project, likely benefits from economies of scale.
• The following summarizes the differences by certain categories:

1. Scale and Efficiency - Navigator Homes uses the Green House model, which consists of multiple small residential-style buildings (5 buildings, each housing 14 residents). This decentralized approach can reduce some costs associated with large-scale institutional facilities.
   The Nantucket nursing home is a single, state-of-the-art facility with 45 private rooms. Large, centralized buildings often require more costly infrastructure, HVAC, and fire safety systems.

2. Construction and Material Costs - Building a single large facility (like the Nantucket project) often requires higher upfront construction costs for steel, concrete, and specialized systems (such as hospital-grade HVAC).
   Smaller homes, like the Green House model, may use more cost-efficient residential construction methods, which can reduce materials and labor costs.

3. Design and Complexity - The Green House model emphasizes a home-like setting, which may allow for more standard (and sometimes lower-cost) finishes, cabinetry, and furnishings. A traditional state-of-the-art nursing home with private rooms and hospital-level medical infrastructure typically requires more costly features, such as:

• Advanced nurse call systems
• State of the art rehab gym space with training for home suite
• High-end flooring and antimicrobial materials
• Complex commercial kitchen and laundry facilities

4. Land and Site Development Costs - The cost of land acquisition and site preparation varies widely between Martha’s Vineyard and Nantucket, and one site may have required more expensive infrastructure improvements (such as sewer, water, and road access).

5. Regulatory and Healthcare Standards - The state-of-the-art facility may need to meet stricter healthcare regulations and include higher-level medical capabilities, which adds to cost. The Green House model, while still highly regulated, operates more like a small home residence in its layout, which could reduce some costs.

6. Staffing and Operational Efficiency Considerations - Larger institutional facilities often require higher staffing support spaces adding to upfront design costs (like larger break rooms, nurse stations, and administrative offices). The Green House model is designed for a more self-sufficient caregiving model, which can reduce the need for expensive centralized spaces.