Purchase of the VNA building

By Dukes County for Senior Services

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 Alzheimer’s disease has doubled in the last years and will continue to grow. The needs of families dealing with Alzheimer’s disease (or other dementia) are unique and long term. These individuals require trained staff and specially designed programs. None of the island town’s 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.

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:– Martha’s Vineyard Appraisal - $1,650,000 (2/20/2014)– Clancy Appraisal Co. - $1,375,000 (6/18/14)

Original proposal to sell: $1,625,000Current proposal to sell: $1,400,000 plus included would be at no cost all furniture, fixtures and equipment as requested – valued at $54,000

Building ImprovementsThere will be improvements needed to make the building comply with state’s 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.

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.

BOND Formula Town Share50/50 $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 interest10y bond w interest

50/50 $1,938,400.00Aquinnah 3.25% $62,998.00Chilmark 11.09% $214,968.56Edgartown 30.82% $597,414.88Oak Bluffs 20.96% $406,288.64Tisbury 18.85% $365,388.40West Tisbury 15.03% $291,341.52

100.00% $1,938,400.00Interest $338,400.00

ESTIMATED FIRST YEAR PAYMENTFormula 10 year bond 4% interest on $1.6M50/50 $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 $24,841.60Edgartown 30.82% $49,312.00 $19,724.80 $69,036.80Oak Bluffs 20.96% $33,536.00 $13,414.40 $46,950.40Tisbury 18.85% $30,160.00 $12,064.00 $42,224.00West Tisbury 15.03% $24,048.00 $9,619.20 $33,667.20

100.00% $160,000.00 $64,000.00 $224,000.00

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 Town’s 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 Town’s contribution to debt service in accordance with the formula established (the “50/50” formula).