Taylor Community offers to buy Meredith Bay Colony Club to avoid 'total financial disaster'

MEREDITH — Taylor Community, the largest elder care organization and one of the largest nonprofits in the Lakes Region, is about to become even bigger, if its bid to acquire Meredith Bay Colony Club is approved by the state.

The proposal, which has reportedly been agreed to by both sides, would see Laconia-based Taylor acquire the assets of MBCC, located on Mile Point Drive, and currently in financial distress.

“What we’re calling a landmark day for Taylor, Meredith Bay Colony Club and the Lakes Region at large, we’ve come to an agreement to purchase the assets of Meredith Bay Colony Club,” David Pearlman, chair of Taylor’s board of trustees, said on Friday, characterizing the proposed deal as one local nonprofit “stepping up to the plate to save another nonprofit.”

"We are excited about this, this is really great news," said Bruce Wennerstrom, manager of Meredith Bay Colony Club. He said there were other possible partners, but Taylor was the preferred choice. "We couldn't be more happy."

The deal will have to be approved by the state insurance department, which oversees continuing care communities.

While the proposed deal is under consideration, Taylor will provide operating funds to allow MBCC to continue providing care and services to its residents, Pearlman said, describing a dire financial situation for the Meredith community.

A spokesperson for the state confirmed a superior court judge appointed a rehabilitation trustee to oversee the facility on Oct. 20, 2023. The order was requested by the state's insurance commissioner, and the text of that order cites MBCC's failure to maintain adequate liquid assets, as defined by state law, since 2021.

The spokesperson said any change of control for a continuing care facility must be approved by the state's insurance commissioner, and since MBCC is a charitable trust, it would also require approval by the director of charitable trusts. The spokesperson said such reviews would be necessary regardless of the entity's financial health.

“We are taking MBCC away from total financial disaster,” Pearlman said. “We are not only going to purchase the assets, we are going to also honor every contract of every existing resident at MBCC today. On top of that, we are going to provide working capital to ensure that the day-to-day operations, until we can come in to operate it, will be there.”

Financial filings for Senior Housing of New Hampshire, Inc., the nonprofit organization operating Meredith Bay Colony Club, show an organization with an entrenched cash flow problem. MBCC lost $1.7 million in 2011, $1.3 million in 2012, $890,000 in 2013 and 2014, $764,000 in 2015, $502,000 in 2016, and similar losses in 2017, 2018, 2019 and 2021.

Pearlman said MBCC first approached Taylor about two years ago, and the possibility of a purchase had been “percolating” since then. The idea came to a boil months ago, when it became apparent MBCC was in real danger of running out of revenue, Pearlman said. Negotiations resulted in a letter of intent being signed at the end of the day on June 12.

Despite problems with the balance sheet, Pearlman said the facilities at MBCC are in good shape, including the 118,849-square-foot building, built in 2008, which includes 41 independent living apartments, 20 assisted living units and 24 memory care units. The facility sits on 11 acres of developed land, with another 18 undeveloped acres.

According to Pearlman, MBCC was 76% occupied as of March 16. He emphasized Taylor intends to honor all resident contracts. Similarly, all Meredith Bay employees would be welcomed by Taylor “with open arms,” Pearlman said.

Were Meredith Bay to experience financial collapse, the ripple effects would spread beyond just Mile Point Drive, Pearlman said, explaining preventing such an outcome helps protect the industry and the region. Taylor sees opportunities in the transaction as well. Acquiring MBCC’s infrastructure would provide Taylor with some flexibility as it pursues its strategic plan.

“It is going to allow us to responsibly build a new health care facility on the Laconia campus, which we are going to attack very quickly,” Pearlman said, specifically referencing needs for assisted living and memory care units. “We have great demand on our product, by adding this into our portfolio, it changes the type of building that we were going to build on the Laconia campus.”

Taylor Community’s roots go back to 1907 in Laconia, and it has since grown into the largest continuing care community in the region. Taylor’s Laconia campus is located on 107 acres. In 2021, Taylor purchased the Sugar Hill Retirement Community off Route 109A in Wolfeboro, and last year opened a 65,000-square-foot facility in Wolfeboro’s Back Bay. Taylor currently has a total of 278 independent living units, 80 assisted living units, 22 memory care units and space for 52 residents who require nursing care.

Pearlman said he expected it would take “most of the summer” for the state’s insurance department to evaluate the proposed transaction.

“Something I’ve thought about through this process,” Pearlman said, “how many times in your life do you get an opportunity to step up to the plate and hit one out of the park, that’s great for the community, and you get to save a nonprofit as you round the bases?”

Wennerstrom said operating MBCC has "been a struggle" financially. He said news of the proposed sale was shared within the facility on Monday afternoon. "We are looking forward to being part of that very successful organization. On behalf of both the residents and the staff, everybody is really happy about this."