Harborside retirement community's care units could close under proposed $80M sale
The residents of the Harborside hold a rally calling on politicians and others to save their homes and lifesavings on Oct. 24 in Port Washington . Credit: Newsday/Howard Schnapp
The Harborside’s assisted-living apartments, nursing home and dementia care unit could all close — at least temporarily — under the sole buyout offer for the bankrupt retirement community, leaving only independent-living apartments on the Port Washington property, according to court documents.
Sr Hsg Acquisitions LLC and Focus Healthcare Partners LLC would pay $80 million for The Harborside, or $24 million less than a sale agreement that fell apart in October because of a state regulatory dispute.
That sale agreement also would have kept open all the facility’s care units and guaranteed the payment of tens of millions of dollars in entrance-fee refunds owed to the families of deceased residents.
The entrance-fee refunds would not be paid by Sr Hsg/Focus under the terms of its buyout offer, the documents show.
The Harborside, a nonprofit which opened in 2010, has filed for bankruptcy protection from its creditors three times in the past 10 years. The facility is home to about 180 people whose average age is 90.
The Harborside, with 329 units, is a “continuing care retirement community” that provides different levels of care as residents age, so they don’t have to move when their health deteriorates. It is one of four such facilities on Long Island.
The Harborside “shall be conveyed to the buyer without any operating assisted-living, memory-care or skilled-nursing beds,” states a six-page letter from Curt Schaller, manager of Chicago-based Focus, which owns senior care facilities across the country.
“The buyer shall not have any contractual obligations to continue operating" the care units or accept residents for the units "in the future absent all appropriate and required licensure approval from the New York State Department of Health,” he said in the letter submitted to the federal bankruptcy court in Central Islip on Thursday night.
Schaller added that Sr Hsg/Focus “does intend to apply” for licenses to operate assisted-living apartments and a memory care unit after taking over The Harborside — “and possibly” a license for a nursing home.
Schaller and his attorney did not respond to requests for comment on Friday.
Harborside residents and their families expressed dismay and anger upon learning about the Sr Hsg/Focus buyout offer.
"We are devastated by this worst case, totally unnecessary and unwelcome holiday 'gift'," said Joyce Shapiro, chairwoman of The Harborside Residents Council.
She and others blamed the health department and Gov. Kathy Hochul for the demise of the earlier sale agreement with Life Care Services Communities LLC, which had been approved by the court a year ago. Iowa-based LCS is the third largest operator of senior care facilities in the country.
State officials "indefensibly, without warning or recourse, and certainly without any consideration of the consequences, destroyed that deal when no other comparable one was on the horizon," Shapiro told Newsday. "I wonder if it is OK to be scared now, Governor Hochul, particularly, in spite of your statement of assurance, people will be evicted from The Harborside, if this proposed deal is granted by the court."
Shapiro was referring to Hochul's October admonishment of The Harborside's resident leaders and LCS: "Stop scaring these individuals and making them feel that they’re going to be out on the streets tomorrow. That is not happening. I will not let that happen as the governor of the state," Hochul then said in response to a Newsday question.
The governor's Long Island spokesman didn't respond to requests for comment on Friday.
Cadence Acquaviva, a spokeswoman for the health department, told Newsday in an email statement: "Following LCS’ failure to bring their application into compliance with state law, Harborside and Harborside alone has made the decision to accept a new bid, which must be approved by the bankruptcy court."
She added that if the Sr Hsg/Focus buyout offer is successful, "Harborside is then required to submit to the state Department of Health a closure plan that ensures the safe transfer of all residents" to new homes.
The Harborside's CEO, Brooke Navarre, did not respond to a request for comment.
The Sr Hsg/Focus buyout offer is like one that was turned down by U.S. Bankruptcy Judge Alan S. Trust last year. At that time, he said he selected the $104 million proposal from LCS because it would have maintained all the levels of care and would have paid the entrance-fee refunds.
Last year, there were three potential buyers for The Harborside in a court-supervised auction. Up until Thursday night, there appeared to be two buyers vying for the facility but one failed to meet a Thursday morning deadline to submit a final offer, said Gregory M. Juell, an attorney for The Harborside.
Focus has been an active buyer of senior communities, paying $64 million for the Mariposa retirement community near Palm Beach, Florida, and $41 million for the Summit Park development in Blue Ash, Ohio, both in September.
The Harborside’s assisted-living apartments, nursing home and dementia care unit could all close — at least temporarily — under the sole buyout offer for the bankrupt retirement community, leaving only independent-living apartments on the Port Washington property, according to court documents.
Sr Hsg Acquisitions LLC and Focus Healthcare Partners LLC would pay $80 million for The Harborside, or $24 million less than a sale agreement that fell apart in October because of a state regulatory dispute.
That sale agreement also would have kept open all the facility’s care units and guaranteed the payment of tens of millions of dollars in entrance-fee refunds owed to the families of deceased residents.
The entrance-fee refunds would not be paid by Sr Hsg/Focus under the terms of its buyout offer, the documents show.
WHAT NEWSDAY FOUND
- The sole potential buyer for The Harborside retirement community in Port Washington wants its assisted-living apartments, nursing home and dementia care unit to all be closed, according to court documents.
- Sr Hsg Acquisitions LLC and Focus Healthcare Partners LLC has offered $80 million for The Harborside, which is home to about 180 people whose average age is 90.
- The retirement community has gone bankrupt three times in the past 10 years and any potential sale must be approved by the federal bankruptcy court in Central Islip.
The Harborside, a nonprofit which opened in 2010, has filed for bankruptcy protection from its creditors three times in the past 10 years. The facility is home to about 180 people whose average age is 90.
The Harborside, with 329 units, is a “continuing care retirement community” that provides different levels of care as residents age, so they don’t have to move when their health deteriorates. It is one of four such facilities on Long Island.
The Harborside “shall be conveyed to the buyer without any operating assisted-living, memory-care or skilled-nursing beds,” states a six-page letter from Curt Schaller, manager of Chicago-based Focus, which owns senior care facilities across the country.
“The buyer shall not have any contractual obligations to continue operating" the care units or accept residents for the units "in the future absent all appropriate and required licensure approval from the New York State Department of Health,” he said in the letter submitted to the federal bankruptcy court in Central Islip on Thursday night.
Schaller added that Sr Hsg/Focus “does intend to apply” for licenses to operate assisted-living apartments and a memory care unit after taking over The Harborside — “and possibly” a license for a nursing home.
Schaller and his attorney did not respond to requests for comment on Friday.
Harborside residents and their families expressed dismay and anger upon learning about the Sr Hsg/Focus buyout offer.
"We are devastated by this worst case, totally unnecessary and unwelcome holiday 'gift'," said Joyce Shapiro, chairwoman of The Harborside Residents Council.
She and others blamed the health department and Gov. Kathy Hochul for the demise of the earlier sale agreement with Life Care Services Communities LLC, which had been approved by the court a year ago. Iowa-based LCS is the third largest operator of senior care facilities in the country.
State officials "indefensibly, without warning or recourse, and certainly without any consideration of the consequences, destroyed that deal when no other comparable one was on the horizon," Shapiro told Newsday. "I wonder if it is OK to be scared now, Governor Hochul, particularly, in spite of your statement of assurance, people will be evicted from The Harborside, if this proposed deal is granted by the court."
Shapiro was referring to Hochul's October admonishment of The Harborside's resident leaders and LCS: "Stop scaring these individuals and making them feel that they’re going to be out on the streets tomorrow. That is not happening. I will not let that happen as the governor of the state," Hochul then said in response to a Newsday question.
The governor's Long Island spokesman didn't respond to requests for comment on Friday.
Cadence Acquaviva, a spokeswoman for the health department, told Newsday in an email statement: "Following LCS’ failure to bring their application into compliance with state law, Harborside and Harborside alone has made the decision to accept a new bid, which must be approved by the bankruptcy court."
She added that if the Sr Hsg/Focus buyout offer is successful, "Harborside is then required to submit to the state Department of Health a closure plan that ensures the safe transfer of all residents" to new homes.
The Harborside's CEO, Brooke Navarre, did not respond to a request for comment.
The Sr Hsg/Focus buyout offer is like one that was turned down by U.S. Bankruptcy Judge Alan S. Trust last year. At that time, he said he selected the $104 million proposal from LCS because it would have maintained all the levels of care and would have paid the entrance-fee refunds.
Last year, there were three potential buyers for The Harborside in a court-supervised auction. Up until Thursday night, there appeared to be two buyers vying for the facility but one failed to meet a Thursday morning deadline to submit a final offer, said Gregory M. Juell, an attorney for The Harborside.
Focus has been an active buyer of senior communities, paying $64 million for the Mariposa retirement community near Palm Beach, Florida, and $41 million for the Summit Park development in Blue Ash, Ohio, both in September.
James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.
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