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Island Nursing Home to be transformed into senior apartments

The nursing home closed its doors in August 2021 due to staffing shortages. The board of directors signed an agreement on March 7 to move forward with renovations.

DEER ISLE, Maine — Editor's note: The attached video was originally published on Dec. 6, 2023.

After closing nearly three years ago, the former Island Nursing Home (INH) in Deer Isle will be transformed into apartments for seniors.

According to a Tuesday press release, the board of directors voted on March 7 to sign an agreement with L&B Developers in Portland to outline potential renovation costs, operating expenses, and revenue streams. The developers are also being asked to find a company that can do a feasibility study of whether there is enough demand for 20+ senior apartments at INH.

“We have made a lot of progress in the past month, but there is a lot more work to do,” Leon Weed, president of the Island Nursing Home Board of Directors, said in a release. “It’s important that we get this right. Going back and forth on particular costs and expenses is all part of the process, and we’re moving ahead as responsibly as possible.”

Originally the facility closed in August 2021 due to staffing challenges. While the board explored reopening as a skilled nursing facility, ultimately they decided the staffing challenges were too great. After months of exploring alternative options, the board cited "a lack of reliable funding and staff created an impossible scenario for reopening," in an October 2023, statement.

In January and again in March, the board sent a letter to 353 who donated $231,000 to reopen the INH as a residential care facility. They asked contributors if they wanted their contribution returned or if it could be used for the senior apartment renovations.

“When we initiated the fundraising activity, we promised contributors that we would refund their contribution if we were not able to reopen as a residential care facility,” Weed said. “To date, contributors have told us we could keep $183,951. Contributors have requested that we return $12,325, which we have done already. The board voted on March 27 to return the funds contributors made if they had not responded to either of our letters. Of course, if they wish to send the money back to us for the purpose of senior apartment renovations, we will gladly put it toward that purpose.”

In addition to partnering with L&B Developers, the board of directors has hired the Portland architecture firm Whipple Callender.

“Whipple Callender has a long and credible history of designing existing facilities for alternative use,” Weed stated. “The board has been very pleased with the architect, Joe Delaney, who has met with the board three times already.  He continues to make suggestions which gives us an opportunity for input and to provide him with more direction.”

The board is now looking to partner with contractors who can offer an estimate on the renovations. The board said they also anticipate working with MaineHousing to help fund the project, which means there will be some renovation requirements including energy-efficient windows, new insulation, and heat pump installations, according to the release.

“There is a lot of work being done on parallel tracks,” Weed said. “We have to ensure there is enough demand to fill the proposed apartments, and we will determine that with a market study. We have to ensure that the cost of the project is affordable with the bulk of the cost of renovations coming from MaineHousing and other grants. We are doing our best to move forward responsibly while keeping our community informed along the way. This is a long process, but it’s one we are feeling good about."

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