New owner sought for Farmington home

By NICK VLAHOS
For The Weekly Post

FARMINGTON – Like many of its residents, perhaps, Courtyard Estates of Farmington is in transition.

As a result of the bankruptcy proceedings of its parent company, the senior assisted-living facility now is being operated by a court-appointed receiver. Bank of Farmington, the Courtyard Estates mortgage holder, negotiated the temporary move announced Monday.

The plan is for a new owner to take over the Petersen Health Care facility, according to Bank of Farmington President Joseph Higgs. It could take two to three months before enough information is available to determine an asking price, although a sale might happen at any time.

Higgs said he planned to talk this week with Courtyard Estates staff and residents and their families regarding the ownership situation. Regarding care for the 32 current residents, he and Courtyard Estates Executive Director Lisa Ward suggested the goal is for the status quo to remain in place.

“The bank along with the team we’ve put together have very good intentions for the property and the community,” Higgs told The Weekly Post. “We don’t want folks to worry, because we’re going to do the right thing here with this property.”

The court-appointed receiver is Mike Flanagan of Flanagan & Associates, a law firm based in Overland Park, Kan. The firm specializes in the long-term-care industry. An affiliate of Tutera Senior Living & Health Care, based in Kansas City, Mo., is to assist Flanagan with day-to-day Courtyard Estates operations.

Petersen filed in March for Chapter 11 bankruptcy. Peoria-based Petersen, which operated almost 100 senior-living facilities in three states, owes creditors about $295 million.

Last month, a Delaware federal bankruptcy judge authorized the sale of about 80 Petersen properties for more than $116 million.

Bank of Farmington participated in the bankruptcy auction, according to Higgs. The bank submitted an initial $2 million credit bid to purchase Courtyard Estates, but subsequent discussions with debtors’ attorneys sparked the receivership plan. The bank did not buy the facility, Higgs said.

Among Flanagan’s responsibilities will be to manage income and expenses in determining the property’s value.

“We were able to get to know him a little bit during the process and he indicated he would help us,” Higgs said. “Petersen still owns it. They just don’t have control of it anymore.

“We just didn’t want bad things to happen. We didn’t want it sold to somebody who might close it or put it in bad hands. We kind of did what we had to do to get it in the right hands and get it on the right path.”

Courtyard Estates opened about eight years ago, at a construction cost of about $3 million. The 34-room facility has a waiting list, according to Higgs and Ward.

Higgs said his bank was involved in efforts to bring the facility to Farmington, to help fill a community need.

Based on the first few hours after the operational change was announced, Ward suggested the transition to the Flanagan group would be relatively easy for the 35 or so Courtyard Estates employees.

“There has been some uncertainty and a bit of anxiety, but for the most part, we’re just trying to maintain what we’re doing,” Ward said. “We have a very strong team that works together and has a very lengthy tenure. No matter who the ownership is, it will never change how we care for our tenants.”