Nantucket Select Board December 2024: Major Infrastructure and Housing Decisions

The Nantucket Select Board convened for an extensive December 10, 2025 meeting addressing critical infrastructure projects, affordable housing initiatives, and community services that will shape the island's future for decades to come. Over the course of this marathon session, the board tackled more than two dozen agenda items affecting everything from elder care to wastewater management.

Public Comments Address Community Concerns

The meeting opened with public comments covering several pressing community issues. ▶ Watch public comments

Town officials announced upcoming PFAS public information sessions scheduled for December 11th and January 22nd, 2026, providing residents with critical information about water quality concerns. The Planning and Economic Development Commission also requested updates to its enabling legislation.

Community members raised concerns about the Christmas Stroll incident at the Boarding House Restaurant, prompting discussion about the event's character. One resident asked pointedly: "Are we marketing Christmas stroll to be a drunken fest or do we want stroll to be a family friendly weekend?" ▶ Watch Christmas Stroll discussion

Additional public comments addressed infrastructure concerns, including changes to landfill policies for non-compostable and non-recyclable items, with concerns that "large truckloads of brush would have to pay in the future." Residents also objected to power pole installation on Surfside Road, noting the poles "are totally out of character" for the area.

Tacoma Greens Workforce Housing Project Receives Final Approval

In a significant victory for affordable housing advocates, the Select Board approved comprehensive closing documents for the Tacoma Greens workforce housing project. ▶ Watch housing approval

The ambitious development will create 64 units of workforce and low-income housing on town-owned land, with 55 units restricted across different income levels including 30%, 60%, and 120% of Area Median Income (AMI). Housing Director Christy Farentella celebrated the milestone: "The road has been long but we're excited to see this project commence and create this much needed housing for our community."

Complex Financing Structure

The project employs sophisticated financing mechanisms to maximize available funding sources. ▶ Watch financing discussion

Bernie Husser, the project's financial consultant, explained the structure as "what's known as a twinned deal... a combination of 9% and 4% federal tax credits." The complex condominium structure separates tax-exempt and taxable financing to comply with federal tax credit requirements, creating separate partnerships for each component.

Funding sources include:

• Rockland Trust (primary lender)
• Massachusetts Housing Partnership
• Affordable Housing Trust ($8.7 million loan from the town)
• Federal low-income housing tax credits

As one board member noted, "We're the largest funder of this... other than Rockland Bank." The town executed a 99-year ground lease at $1 per year and will hold affordable housing restrictions in perpetuity. ▶ Watch final vote

The board voted 4-0 to approve all project documents, with additional protections including a right of first offer added as a condition of the town's loan. The project includes local resident housing preference, ensuring Nantucket workers have priority access to these critically needed units.

Island Home Facility: Community Divided Over $126 Million Decision

The most contentious and time-consuming discussion centered on the future of the Island Home skilled nursing facility, with passionate testimony from dozens of community members spanning several hours. ▶ Watch Island Home discussion begins

Project History and Background

The board reviewed the extensive history of Island Home facility studies dating back to 2007, with multiple town meeting attempts to fund a new facility failing over the years. Since 2018, the town has been working on plans for a new nursing home facility at Sherburne Commons.

The proposed facility was initially priced at $116 million but has escalated to over $135 million from an initial estimate of $30 million. The project failed to achieve the required two-thirds vote at the 2025 annual town meeting, leaving the board to determine next steps. ▶ Watch cost discussion

As one official stated bluntly: "We are going to either build this facility at whatever the number ends up being, or we are ending nursing home care on Nantucket." The current facility is nearing the end of its operational lifespan and faces compliance issues.

Community Testimony: Strong Support for Elder Care

The Interfaith Council expressed strong opposition to facility closure, noting that 80% of survey respondents considered on-island long-term care important. ▶ Watch community perspectives

"Care of the aging and vulnerable is a sacred duty," one faith leader testified. "Removing elder care would fracture a vital link between generations." Multiple speakers emphasized how "maintaining these sacred relationships becomes far more difficult if residents are moved off island."

Supporters provided emotional testimony about the facility's importance: ▶ Watch personal stories

• "Being able to be there for their last moments is a beautiful thing"
• "It was just a joy for my husband and her kids to visit"
• "We take care of the young and we take care of the old"

Kathy Greger summarized the sentiment: "A vote for the new Ireland home is a vote for community integrity." ▶ Watch more testimony

Concerns About Cost and Tax Impact

Opponents raised serious concerns about the financial burden on taxpayers and future generations. ▶ Watch fiscal concerns

Amy Eldredge warned: "People forget that as people build in your neighborhoods, your assessments are going up... We're going to be driving out more people in this community than have already left." Another resident stated firmly: "I won't burden my kids with this kind of debt."

The community remains divided over whether the $126 million facility cost is sustainable for an island community already facing significant tax pressures.

Exploring Alternatives

Board members and community members suggested exploring alternative models, including transitioning facility management to a nonprofit organization. "We need to take the piece of land and give it to a nonprofit," one speaker proposed.

Discussion also covered whether reducing the facility size could lower costs, but officials noted: "If you peel off 20% of the beds, you're cutting off the revenue stream." The proposed facility would have 45 beds, expandable to 57. ▶ Watch facility design discussion

Path Forward

The board indicated strong likelihood of returning the proposal to the 2026 Annual Town Meeting ballot, potentially with the original facility plan from the previous town meeting. Officials emphasized the facility needs both two-thirds town meeting approval and a majority ballot vote.

Potential funding sources under consideration include:

• Land bank contributions
• Cost reduction through partnerships
• Residential tax exemption adjustments
• Alternative financing mechanisms

The board committed to keeping the current facility operational if the new project fails, though the existing building faces compliance issues with COVID regulations and is approaching the end of its useful life.

Somerset Sewer Extension: $43 Million Infrastructure Investment

The board engaged in extensive discussion about the Somerset Needs sewer extension project, a major infrastructure initiative that has been in the comprehensive wastewater management plan since 2004. ▶ Watch Somerset sewer discussion

Project Scope and Environmental Benefits

The ambitious project will serve 937 properties across the Somerset and Hummock Pond areas, including:

• Approximately 15,000 feet of gravity sewer
• Approximately 88,000 feet of low pressure sewer
• Roadway improvements at Raceway Drive and Bartlett Road intersection
• Potential bike path route integration

"Somerset was identified as a needs area... mostly due to nitrogen removal to protect the ponds," officials explained. The project aims to significantly reduce nitrogen pollution in local water bodies, addressing environmental concerns that have plagued the area for years.

Construction is planned to begin spring 2027 and complete by spring 2029.

Funding Strategy and State Support

The total project appropriation is $43.3 million, covering sewer infrastructure, water system improvements, roadway enhancements, and drainage. ▶ Watch funding discussion

The town is pursuing State Revolving Fund (SRF) financing with potential 0% interest if the project achieves priority status on the Department of Environmental Protection's Intended Use Plan (IUP). The timeline depends on IUP status confirmation, with the board deciding to keep the project article on the May 26th town meeting warrant until confirmation is received.

Allocation Debate: Taxpayers vs. Betterments

Significant discussion focused on how to apportion project expenses between general taxpayers and sewer users through betterment fees. ▶ Watch allocation debate

Officials noted that the previous Harbor Shimo project was funded entirely through the tax base. However, with the Somerset project's scale, concerns arose: "If we put it all in the tax base, the taxpayers couldn't afford it." The board emphasized: "We have to be careful how we proceed fiscally."

The board is exploring consistency with previous project approaches while considering fairness to both property owners who will connect to the system and general taxpayers. ▶ Watch betterment discussion

Environmental and Development Considerations

Discussion touched on potential state regulations regarding nitrogen-sensitive areas and the environmental impacts of development after sewer installation. One official noted: "We have to do this just from an environmental standard status," while another warned: "People are going to leave the island because Hummut Pond is green."

The board is considering potential phasing of the project to manage costs and exploring whether 0% or low-interest state financing is achievable. ▶ Watch environmental discussion

Septic System Regulations

Related discussion covered Advanced Innovative (AI) septic systems, which are "approximately 60-70% more effective at cleaning wastewater." However, officials clarified that "current regulations do not say that everyone needs an AI system," with the Board of Health continuing discussions on new septic system regulations.

Final Decision on Warrant Inclusion

After extensive debate, the board voted 3-2 to add the Somerset Needs sewer project to the warrant pending further betterment analysis. ▶ Watch warrant vote

However, later in the meeting, the board reconsidered this decision due to concerns about "stacking this many capital debt exclusions on the same warrant" and timing of financing confirmation. ▶ Watch reconsideration The final decision on removal was deferred to a future meeting.

Fiscal Year 2027 Capital Projects: Massive Investment Planning

The Town Manager and Finance Director presented an overview of the enormous capital investment program under consideration for Fiscal Year 2027. ▶ Watch capital overview

Staggering Project Totals

The numbers revealed the scale of Nantucket's infrastructure needs:

• $115.5 million in potential general fund capital projects
• $69.4 million in enterprise fund projects
• $53.3 million in potential debt exclusions
• $1.1 billion in long-term capital projects over 8-10 years

The Town Manager acknowledged the challenge: "We are struggling with putting a real growing burden on taxpayers with significant capital projects." The Finance Director added: "We are looking at how to potentially smooth this out."

Potential debt exclusions include projects for town employee housing, public safety improvements, and various infrastructure upgrades. The Capital Program Committee is scheduled to complete its review in late December or early January.

Total Borrowing and Bond Rating Implications

When all potential projects are combined, including enterprise funds and projects at Tom Nevers and the school, total potential debt exclusions could reach approximately $200 million. ▶ Watch borrowing discussion

The board discussed financing options, comparing 0% SRF loans (which include a 75 basis point administrative fee) against standard market rates that could fall "under 3%" or "two and a half versus 0.75." ▶ Watch interest rate discussion

Regarding the town's bond rating, officials expressed confidence that credit rating agencies "would look at it and look at the tax base and our capacity, and they would be okay with it." Nantucket currently maintains a AAA credit rating with a stable outlook. ▶ Watch bond rating discussion

Meeting Conclusion and Deferred Items

As the marathon meeting stretched late into the evening, the board faced numerous remaining agenda items including:

• County/town real estate matters
• Tom Nevers debris removal
• Roller hockey rink project
• Fee review
• Warrant article review
• Housing production plan

▶ Watch meeting conclusion

One board member expressed concern about decision quality given the late hour: "I'm really tired and I think that I'm not giving it the attention that it deserves at this hour in my state of being. So since we're going to do it again next week anyway, it's one less opportunity for the community to tune in. But I would move that we table it until next week."

The board unanimously agreed to continue remaining items to the following week's meeting and voted to adjourn.

Key Takeaways

This comprehensive Select Board meeting addressed fundamental questions about Nantucket's future:

Housing: The approval of 64 workforce housing units at Tacoma Greens represents significant progress on the island's affordable housing crisis, with innovative financing and strong local preference provisions.

Elder Care: The Island Home facility debate reflects deep community divisions between fiscal responsibility and maintaining essential services for vulnerable populations, with a decision likely coming at the 2026 Annual Town Meeting.

Infrastructure: The Somerset sewer project and broader capital planning reveal the massive investment needed to maintain and improve island infrastructure, with creative financing strategies essential to managing taxpayer burden.

Fiscal Planning: With potentially $200 million in borrowing under consideration, Nantucket faces critical decisions about balancing community needs against taxpayer capacity and long-term fiscal sustainability.

The meeting demonstrated both the complexity of municipal governance and the passionate engagement of Nantucket residents in shaping their community's future.

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