Exit 100 off the GSP.
By Paul Goldfinger, Editor @Blogfinger.net
The deal to turn the Laingdon Hotel into a substance treatment center on Main Avenue was hatched last August—before the presidential election. In our discussions about this matter, we learned something about the economics and we found out that such facilities can be very lucrative, especially for those high end clients who probably would have been found at the new Sprout/Laingdon location. But we also found out that insurance money is available for patients, including those who are not wealthy, such as those under Medicaid. Also we spoke about a law enforcement program which lets drug criminals enter rehab instead of going to jail.
And that money trail exposed why entrepreneurs were interested in such facilities.
Our discussion also revealed that Ocean Grove still has multifamily dwellings and some multi-unit boarding houses such as the Whitfield (now deceased) and the Warrington (now unoccupied and aspiring to be an expensive “boutique hotel.”)
But a rehab facility could be created in a smallish multi-family house, even of only 2 or 3 units, just as such places could also be condoized, and neither use seems to be good for the town. But the pressure to find new sources of investment income in OG could grow even larger, given the rising spending on healthcare.
Now the Grove is in danger of going viral with such “medical shelters” for addicts (rich or poor), Mary’s style clients, or whatever such “shelters” might be devised by inventive investors.
Those who lived in this town in the 1980’s vividly recall all the “shelters” that were found around the Grove, and many of those attracted unattractive residents who hung out in various favored locations, smoking, yelling, sleeping on benches, and smelling. We have heard of some of that from residents who lived here during that era who are now dismayed that we might move in that direction once again.
But why would Neptune Township allow such deterioration? Well, there are those in the Grove who believe that Neptune officials really don’t care much about Ocean Grove and would be happy for it to slide into the abyss, as long as the tax dollars continue to flow in one form or another. And there are the local developers who are happy to exploit the town for money regardless of the consequences in terms of crowding, parking, and lifestyle deterioration.
However, during our last look at this subject, before we could really sink our digital teeth into the rehab/Laingdon matter, the application for a use-variance at the Zoning Board of Adjustment was abruptly withdrawn, and we don’t know why. Maybe the Blogfinger poll and citizen comments scared them away, but more likely we could find the answer by following the money. Being unpopular with the OG public has never frightened the Neptune Township and Ocean Grove movers and shakers when money was at stake.
The Township ZBA office denies knowing anything about the withdrawal. But on January 14, an article appeared in the Wall Street Journal by Jeanne Whalen in the US News section, page A-3. which might shed some light on the situation. It was sent to us by a citizen reporter.
In it she explains that there are provisions under the Affordable Care Act (i.e. Obamacare) that forces ACA insurance providers to pay for addiction rehab. The amount of money available that way is “huge,” as it tries to chase the widespread increase in deaths due to opioids such as heroine and fentanyl, especially in the north east, including Monmouth County.
According to the WSJ, “There are 2.8 million Americans with substance abuse disorders who would lose some or all of their insurance if the ACA is repealed.”
“Researchers at Harvard Medical School and NYU estimated a repeal would withdraw at least $5.5 billion annually from the treatment of mental health conditions including substance abuse.”
So, is there any wonder that investors have been sniffing around our town thinking of rehab facilities as sources of healthcare income? And perhaps, after Trump won, Sprout may have freaked out and chosen to drop the Laingdon idea.
But, because the opioid addiction problem is growing and harming families and small businesses, the new administration might be compelled to keep the money coming, and if so, OG is really a perfect place to open rehab. facilities.
If Mary’s Place could get zoning approval for their “shelter” without even a variance, then you’d better not pout, you’d better not cry–I’m telling you why: Santa Claus is coming to town and he has goodies in his sleigh for those who want to help addicts in the Grove.
THE PUPPINI SISTERS: