By Shannon Lukens.
Casey’s Pond residents in the Skilled Nursing area of the facility are getting three months notice to leave. That’s 47 people as of Monday, in the Doak Walker neighborhood of Casey’s Pond. The residents in Skilled Nursing are the ones who have difficulty with their activities in daily living, like eating, getting dressed, and mobility.
Bellann R. Raile with Cordes & Company is the managing director of the company that is handling the receivership.
“I understand how difficult this is. Our social services director will have a team to help residents with all aspects of transition to their new community. She has already been working on tools to help families with this process.”
These residents will receive reimbursement for moving costs and other help during the move.
The 66 Casey’s Pond residents in the assisted living and independent living area are not impacted.
Raile recognized the Letter of Intent sent by a coalition of community groups on Friday, including the City of Steamboat Springs and Routt County. But it says the letter does not meet the criteria for a qualified bid for Casey’s Pond, and the offer price is “well below what has been previously communicated to the Board as a fundraising target.”
It says if the group was unable to complete the purchase as they had hoped, then Casey’s Pond residents would have to move during winter and the holiday season.
No employees are losing jobs right now.
Coverage from Steamboat Radio News
July 29, 2024 — Forty-seven Casey’s Pond residents are getting notices to leave in 90 days
July 26, 2024 — COMMUNITY EFFORT UNDERWAY TO SAVE CASEY’S POND
July 25, 2024 —HOUSEKEEPERS AT CASEY’S POND OFFER TO HELP
July 2, 2024 — CASEY’S POND GOES INTO RECEIVERSHIP WITH ROUTT COUNTY DISTRICT COURT
Press Release; July 29, 2024
CASEY’S POND TAKES INEVITABLE NEXT STEP AFTER CREDITORS HOLD OFF FOR NINE YEARS
Significant Concessions Are Made for Residents; Detailed Timeline Shows Problematic History of Project
Steamboat Springs, CO – Casey’s Pond, a senior living community in Steamboat Springs, is taking the inevitable next step in its future. With no viable path forward, skilled nursing residents are being notified that they have three months to find alternative arrangements. Residents and their families have been previously notified of this situation through town meetings and written updates over the past few weeks. They have been advised that they will receive concessions to offset the understandably challenging impact of such a move. These include engaging numerous outside agencies to assist with the move, providing reimbursement for moving costs and returning the refundable entrance fees of eligible residents, which is highly unusual in continuing care living communities.
“We understand how difficult this move will be for residents and their families and we sympathize with their situation,” said Bellann Raile of Cordes & Company which is managing the process since the Board of Casey’s Pond agreed the facility should go into receivership in June 2024. “We will do everything possible to facilitate a smooth transition.”
How Did Casey’s Landing Arrive At This Juncture?
It is important to know the history of Casey’s Pond, dating back more than a decade, to understand why the facility is at this point.
2013 – Construction finished and the facility opened. However, Casey’s Pond began immediately drawing down on the $3.5 million in liquidity support provided by Yampa Valley Medical Center.
2014 – Casey’s Pond violated its operating agreements with lenders in the first full year of its operations.
2015 – The facility failed to make payments on its loans.
2015-2024 – Creditors made every effort to keep the facility operational, deferring over $23.3 million of payments owed, effectively waiving certain financial and occupancy covenants, and requiring consultants who recommended numerous ways to reduce expenses and increase revenue.
2020 and beyond – During Covid, lenders again provided forbearance and support to keep the facility operating.
2023 – After more than nine years of concessions and being owed over $23.3 million in past due interest, the creditors could have easily foreclosed and shut the facility. Instead, they agreed to work cooperatively with the Board of Casey’s Pond to find a buyer who would maintain it as a senior living facility. Unfortunately, there were only three offers. The highest and best offer (by a margin of more than $10 million) would have eliminated senior living and made Casey’s Pond into a multifamily project.
January 2024 – In order to keep the facility as a senior community, the Board then requested 60 days to fundraise from the community to match the highest offer.
May 2024 – After four months of outreach (double the 60 days requested by the Board) not a single letter of commitment or pledge of funds was produced.
May 28, 2024 – The Board presented an offer from a third-party buyer that would require the closing of the skilled nursing facility. Their suggested plan also failed to meet the requirements of the Board’s agreement with creditors.
June 27, 2024 – Nine years after the initial loan default by Casey’s Pond, the creditors filed for a receivership, which was agreed to by the Board.
July 24, 2024 – A letter of intent was received from a coalition of community groups. This letter of intent does not meet the criteria for a qualified bid that has been established. The coalition’s offer does not contain any commitments from the signatories to contribute toward the fundraising goal and requests an additional 12 weeks to raise the necessary funds. The coalition further requests that during this 12-week period, the community refrain from closing its skilled nursing operations. While the group offers to put funds on deposit during this period, it does not commit that these funds can be used to fund operating shortfalls during the 12-week period, nor does it make these funds available to the community in the event that they are unable to complete the purchase. This requested delay would mean that if the fundraising efforts were unsuccessful, residents would need to move during the winter and holiday season. Given the unsuccessful attempts by Casey’s Pond Board to raise funds over the first part of this year, success of the proposed fundraising effort seems less than certain. Finally, the group’s offer price is well below what has been previously communicated to the Board as a fundraising target.
The sale process kicked off last week and over 1,000 contacts were initially made. For more information about the sales process, please contact Andy Hellman at andy.hellman@cbre.com or Justin Hunt at justin.hunt@cbre.com.