The Nassau County Industrial Development Agency has agreed to help the retired community in Port Washington recover from a second bankruptcy for the first time in seven years because of concerns about the welfare of the elderly.
The split IDA Board last week resolved to issue additional bonds and give Amsterdam on the harborside an additional tax deduction. Nonprofits need help rebuilding their existing $ 140 million debt and paying admission refunds to the deceased residents of 33 families.
IDA’s support consists of up to $ 41 million in taxable bonds, up to $ 128 million in tax exemptions, and up to $ 1.3 million in mortgage record taxes, officials said.
In addition, Amsterdam sponsor Manhattan’s nursing home of the same name has agreed to spend $ 18 million on the 300 East Overlook retirement community on the Gold Coast of Nassau.
“My support [for the aid package] IDA’s second vice chairman, Anthony Simon, mentioned 375 people living in Amsterdam, “mainly for residents. Their quality of life at this stage of their lives suddenly Must not be. [changed] Due to a mistake that may have been made along the way “by an Amsterdam executive.
Simon, who heads Long Island Rail Road’s largest employee union, was one of five “yes” votes for the debt relief package. Secretary Timothy Williams voted “no” and accounting assistant John Kumatos abstained.
Banker Williams was skeptical about Amsterdam’s long-term viability. He said the retired community showed high occupancy in 2016-18 but still reported operating losses. Last month, 329 facilities filed for Chapter 11 bankruptcy protection from creditors, alleging that the pandemic had stopped selling apartments.
“We can’t see in the numbers you gave us that we won’t be back here within seven years,” Williams said in his third bankruptcy filing. “Need to see [financial projections] It’s seven to nine years from now. “
Williams, Kumatos, and Assistant Secretary Christopher Fusco were members of the 2014 IDA Board of Directors, who approved Amsterdam’s first bailout plan. The plan also included a $ 550,000 grant for new bond issuance and additional property tax savings.
The plan was “kicking the can,” said Amsterdam CEO James Davis last week. “This is very different. We believe it is a long-term solution to our problem,” he said.
Davis quoted about $ 58 million raised through new IDA bonds and additional funding from Amsterdam’s nursing home in Manhattan.
Harborside Amsterdam has also introduced a second type of sales contract, where Davis says it will boost apartment sales. He said the contract offers lower admission and monthly service fees in return for limited nursing home services.
Elderly housing with care consists of independent living and long-term care apartments, as well as skilled care for those in need.
Expected tenants often sell their homes to pay for admission to Amsterdam. This is between $ 527,250 and $ 2.2 million in the initial sales contract, depending on the size of the dwelling unit. According to a document filed with the US Bankruptcy Court in Central Islip, the agreement requires a monthly service fee of $ 2,600 to $ 8,100 for meals and amenities such as indoor heated pools and underground parking.
Davis told the IDA board last week, “I’ll do everything I can to prevent it from appearing in front of you again, except for expansions.”
“I’m voting with a lot of hesitation. I’m very concerned about the long-term future,” said Richard Kessel, chairman of IDA, citing IDA staff’s support for the debt relief program. Said.
Earlier, he received a commitment from Amsterdam executives to provide quarterly financial reporting so that IDA could monitor the retirement community. He said it was up to the federal bankruptcy judge to decide whether Amsterdam would get out of bankruptcy protection, and the federal bankruptcy judge is expected to rule in about a month.
“In many cases, we have to worry about vulnerable people,” Kessel said.
What you need to know
* Nassau County IDA has agreed to issue a new bond to Amsterdam, Harborside, a retired community in Port Washington, and give it even more tax deductions.
* Last month, a nonprofit filed for bankruptcy protection from a creditor for the first time in seven years.
* The IDA Board has been split in a debt relief program but is concerned about the welfare of 375 older people in Amsterdam.
Bankrupt Amsterdam Retirement Community Gave More IDA Help
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