$42.2 million project will result in new medical office building in Northern Chautauqua County
IRVING, N.Y. — A major redevelopment project involving the former TLC-Lakeshore Hospital in Irving, NY is ready to move forward. During its meeting on Tuesday, Jan. 27, the County of Chautauqua Industrial Development Agency (CCIDA) Board of Directors approved financial incentives for Main Rd Med Group, LLC to redevelop the former hospital into a health care facility which will provide behavioral health and addiction recovery services, as well as other medical offices and commercial/retail space. The hospital has been vacant since its closure in 2020.
The project includes the redevelopment and adaptive reuse of the 173,000 square-foot facility, which sits on 32.9 acres at 845 Main Rd. (Route 20) at a cost of just over $42 Million. Main Rd Med Group recently acquired the property from Brooks-TLC and will lease the facility as a medical office building to New York Medical Center. Once the project is completed, it will provide an estimated 180 beds, making it a behavioral health center for Western New York. It is also expected to create an estimated 300 permanent healthcare-related jobs within three years of completion, along with 121 temporary construction jobs.
The project has been met with great anticipation and support by local, county, and state officials including Paul “PJ” Wendel, Chautauqua County Executive; Michael Faulk, Chautauqua County Chief Medical Officer; Carmelo Hernandez, Director of the Chautauqua County Department of Mental Health and Social Services; James Quattrone, Chautauqua County Sheriff; George Borrello, former Chautauqua County Executive and current New York State Senator; and Andrew Molitor, New York State Assemblyman. It has also received support from the Seneca Nation of Indians via the Erie County Department of Mental Health, the Town of Hanover, and the Village of Silver Creek.
In order for the project to proceed, the CCIDA board on Tuesday approved a 15-year, adaptive reuse payment in lieu of taxes (PILOT) incentive, along with a sales tax abatement and mortgage tax exemption. The PILOT will produce payments to the affected taxing jurisdiction, over the life of the project, in an amount of $2,467,388.
“This is not only a significant economic development project for our county, but also a significant healthcare project for residents from across Chautauqua County and Western New York,” said Mark Geise, Deputy Chautauqua County Executive and CCIDA CEO. “Not only will this project fill a great need in providing behavioral and mental health services, it will also bring a building back to life and provide much-needed healthcare-related jobs. The CCIDA is obviously happy to assist in making it a reality. Kudos to Kristine Morabito, CCIDA Project Manager, for her diligence and hard work in bringing this project across the finish line.”
“We’ve been well aware that this type of healthcare has been sorely needed in the North County for several years,” said Wendel. “Today’s action by the CCIDA Board is an important step toward making it a reality. We look forward to having this new facility open and ready to help our residents, while also providing new jobs for our residents.”
“For years, I’ve been pushing to see this site put back into service and to bring more healthcare options back to the North County, so today’s announcement is incredibly gratifying,” said Senator George Borrello. “This project means real access to critical behavioral health and recovery services for our residents, hundreds of good-paying healthcare jobs, and the long-overdue revitalization of a facility that has been sitting empty for too long. It’s exactly the kind of smart, community-focused redevelopment we’ve been working toward.”
“This project is about restoring access to essential behavioral health and substance use disorder treatment services in a region that has gone without them for far too long,” said Ray Manning, CEO of New York Medical Center. “By redeveloping the former Lakeshore Hospital, we are establishing a modern, comprehensive treatment center that addresses mental health, addiction recovery, and related services for residents of Northern Chautauqua County and communities throughout Western New York.”
“The former Lakeshore Hospital was a major employer in the Town of Hanover, in addition to providing community health services for nearly 100 years. I am very happy that the CCIDA is supporting the redevelopment of the former hospital. This support will bring back the jobs and medical services that we lost when this institution closed,” said Lou Pelletter, Hanover Town Supervisor.
With the approval by the CCIDA Board, and pending the NYS Certificate of Need, the Main Rd Med project is estimated for completion by July 2028.
About CCIDA – The CCIDA is an economic development organization authorized and empowered by the State of New York to make Chautauqua County a better place to work, live, and visit. It facilitates development by attracting new businesses, while promoting the retention and expansion of existing businesses. Assistance in the form of incentives – tax abatements, low interest loans, and bond financing – enhances the opportunities for job creation and retention by our businesses. For more information visit ChooseCHQ.com.