A Rochester-based social services agency that operates assisted living, rehab, addiction treatment and mental health treatment facilities is acquiring a senior facility in Lockport and its adjacent senior apartments.
DePaul Developmental Services, through Vincent Properties Inc., has signed an agreement to buy Heritage Manor, a 40-room and 64-bed adult home at 41 Lexington Court that offers long-term residential care, room and board, housekeeping, personal care and supervision.
It's also under contract to purchase Heritage Manor Estates, with 24 one-floor duplex senior apartments next door, at 5-73 Lexington. Each of the 2,500-square-foot handicapped-accessible apartments includes two bedrooms, private laundry and an attached garage.
The seller is Koinonia Properties, which reached out to DePaul months ago to take over the 6.02-acre facility, said DePaul Chief Legal Officer Jonathan Penna. The deal was delayed by the Covid-19 pandemic, but officials hope to complete the transaction by year-end, he said.
Plans call for $250,000 in cosmetic improvements and updates to the assisted living facility, such as new floors, light fixtures and wall coverings. DePaul will operate it in conjunction with the independent living apartments and its existing Wheatfield Commons, which already has memory care services. That will allow the company to offer a continuum of care.
About 30% of the Heritage Manor residents have incomes at or below the area median, while most of the Heritage Estates residents are low- or middle-income.
The $6.4 million purchase is being financed with $5.52 million in bank loans and $1.13 million in equity.
To facilitate the deal, DePaul and Vincent have applied to the Niagara County Industrial Development Agency for a 20-year payment in lieu of taxes. But they asked for a "deviated" schedule that calls for fixed payments starting at $10,000 for Heritage Manor and $70,000 for Heritage Estates, rising 2% annually, instead of payments based on a percentage of full taxes.
DePaul also expects to seek tax-exempt bond financing through the Niagara Area Development Corp., an arm of the NCIDA.
In all, DePaul would save $863,385 in property and mortgage recording taxes, while generating $3.28 million in tax revenues over the duration of the PILOT, to help fund emergency services. The agency said it would retain 20 jobs, and add two.
A public hearing will be scheduled.
Also on Wednesday, the NCIDA approved a package of $1.15 million in property, sales and mortgage recording tax breaks for Iskalo Development Corp.'s renovation of the vacant former main post office building in the city of Lockport, at 1 East Ave.
The 32,600-square-foot building, which dates to 1904 and includes a basement level, will be fully restored and renovated, and then leased to businesses, with a potential restaurant occupying the first floor. The $6.058 million project will include construction, building improvements, furniture, fixtures and soft costs, and Iskalo is also applying for historic tax credits.