The plan to build a new 102-bed nursing care, skilled rehabilitation and assisted living facility on Piper Mill Road will not move forward as originally planned. 

LincolnHealth received notice from developer Sandy River Company and service provider North Country Associates on Nov. 14 that outlines multiple factors in their decision. These include skyrocketing construction costs, massive hikes in interest rates, the lack of lender options, the need for more up-front funding to secure a loan and staffing shortages requiring the use of contracted labor. 

“The hope was with supply chain issues easing post-COVID, along with a much simpler site in Damariscotta, we would see reduced construction costs,’’ the notice stated. “We saw the opposite, with the estimated total for the project envisioned approaching $45 million.” 

Sandy River Company said it will research potential solutions and present them to LincolnHealth for consideration in the coming months. These solutions may include building a significantly smaller facility on the Piper Mill Road site and renovation and redevelopment of the Cove’s Edge skilled nursing and rehabilitation facility on the Miles campus in Damariscotta. 

“While all parties are disappointed, we recognize the importance of assuring high-quality senior living services are available in Lincoln County for years to come,’’ said Cindy Wade, LincolnHealth’s president. “We will be looking at all potential options for a viable and sustainable solution.” 

Those needing nursing home, skilled rehabilitation and assisted living care will continue to receive high quality care at LincolnHealth’s existing facilities in Boothbay Harbor and Damariscotta.