The Nassau County (N.Y.) Industrial Development Agency (NCIDA) approved a resolution for The Amsterdam at Harborside, a senior living retirement community located in Port Washington, N.Y., which was seeking financial assistance from the NCIDA, the Port Washington News reported. The Amsterdam is requesting that the IDA consider several actions regarding financial assistance including issuing $41 million in taxable bonds, restructuring their existing debt of $140 million with new tax-exempt bonds and an exemption or partial exemption from real property tax and mortgage recording taxes. These requests come after the upscale retirement community filed for chapter 11 protection from their creditors last month. During the pandemic, The Amsterdam stopped making payments on their 2014 bond obligations and payments of resident entrance fees, causing them to fall out of compliance with state law, documents filed in the U.S. Bankruptcy Court in Central Islip stated. Thirty-three families are owed entrance-fee refunds in the amount of $20.3 million, the documents stated. James Davis, CEO of The Amsterdam stated in the filing that “the inability to attract new residents and the burden of statutory requirements regarding the repayment of refunds caused a severe liquidity crisis for the debtor even before the impact of the COVID-19 pandemic. The pandemic exacerbated these problems.” The nonprofit initially filed for bankruptcy protection in July 2014. A January 20, 2015 article from The Port Washington News stated that The Amsterdam exited bankruptcy court after restructuring their debt, which included tax-exempt bonds issued by the NCIDA.
