County Executive Jan Gardner announced that Frederick County Government has settled with Aurora Holdings VII, LLC to retain the Citizens Care and Rehabilitation Center and Montevue Assisted Living facilities. The county will continue its longstanding mission to take care of its own, honor the 1828 deed on the property and keep the promise to seniors and take care of people – residents and employees alike. The agreements were finalized September 1, 2016.
The settlement ends all of the outstanding lawsuits and other pending legal issues between Aurora Holdings, the citizen plaintiffs known as Save Citizens and Montevue and the county. It includes three agreements, one concerning management of the facilities, one concerning the sale of Aurora’s business interests and the settlement agreement itself. Residents in the assisted living facility will continue to receive care for as long as they need it.
Aurora has guaranteed annual profits of at least $2.5 million to the county while it continues to manage the facility for the next 18 months. Aurora will be paid a below-market management fee of 4.5 percent of gross revenues under the management agreement. Should Aurora fail to provide the county with at least $2.5 million each year in profits, the county may terminate the management agreement.
At closing, the county paid Aurora $5.5 million owed under a continuing care agreement. The funds included $3.25 million held in a 2015 escrow account, as well as an additional $2.25 million for 2016. Permits from the State of Maryland have been transferred from Aurora to the county to operate the facilities, and medical services provider agreements for Medicare and Medicaid have been obtained. In addition, Aurora may receive future payments of up to $2.35 million if certain performance conditions are satisfied.
The county’s settlement will cost taxpayers half as much as it would have cost to sell the Citizens-Montevue facilities to Aurora.
The management agreement ensures continuity of care for the residents as well as a stable working environment for the facilities’ many employees.