Yonkers IDA Looks to Preserve Jobs at Malotz Nursing Facility
John Jordan | June 25, 2015
YONKERS— The Yonkers Industrial Development Agency approved on May 19th the initial steps to preserve 240 jobs and 120 patient beds at the Michael Malotz skilled nursing facility, which is being sold by St. John’s Riverside Hospital due to ongoing financial losses.
“St. John’s made it clear they could not continue to operate the nursing home in the face of losses that exceeded a half million dollars a year,” said Yonkers Mayor Mike Spano, who chairs the YIDA. “This plan facilitates a sale that will keep much needed patient beds and jobs in the City.”
The facility will be purchased by Adira, which currently operates the nearby Sprain Brook Manor nursing home. Adira indicated it would purchase the facility and operations for $21 million and spend another $2 million on improvements.
“Nursing homes throughout the state are financially stressed due to reductions in state and federal reimbursements,” said YIDA president Ken Jenkins. “Some of them are closing outright, which is why it is so important that this plan provides for long term stability of the Malotz facility.”
Opened by St. John’s 13 years ago, the Malotz nursing home houses 120 residents, 90% of whom are recipients of Medicaid.
Following a public hearing, the YIDA plans to provide a $360,000 mortgage tax exemption, a $209,375 sales tax exemption on materials used in construction, and a temporary property tax abatement.
In return the YIDA received assurances from Adira that existing employees of the facility will receive preference in staffing the facility going forward. Existing residents of the facility will continue to be able to stay there under the new ownership.
“The process will be seamless for the people who are being cared for, and the people who work there will have a preference in being able to maintain their jobs,” said Mayor Spano, “The outcome is a win for the City of Yonkers.”
Editor, Real Estate In-Depth