(WSB file photo of The Kenney)
The Kenney (WSB sponsor) has announced a new “investment lender relationship” that, it says, allows the center to “remain a nonprofit, charitable organization.” Here’s the news release we received with the details:
A new investment lender relationship has been established for The Kenney. The Kenney has been seeking a new lender and/or sponsor to provide a stronger financial footing for The Kenney. Through that process, Seattle Healthcare Investors, a limited liability company, was formed, which is now the lender for The Kenney.
The new lender purchased the debt and outstanding note from the previous lender, which is exiting this sector of financial investing. This was a mutually-agreed upon transaction between the new lender and The Kenney board of directors.
PRESERVING THE PAST. PREPARING FOR THE FUTURE:
The Kenney remains a non-profit, charitable organization with the same mission of caring for seniors in West Seattle. More than a century ago, The Kenney was founded on faith principles of care and compassion. With our new collaborative relationship with the limited liability company, The Kenney’s mission roots are acknowledged and affirmed; while at the same time, enabling us to efficiently prepare for the future of aging services and the seniors who will need housing and services. We refer to this as “Preserving the past. Preparing for the future.”
We are moving into another century of service and we are pleased that the interim management of Ontrac will transition to a longer-term relationship. The lead position at The Kenney will now be called Executive Director and we will hire a new person to replace Bill Lange, who is currently serving as Interim CEO. When a new Executive Director is hired, we will introduce that person to you. However, Bill will continue to provide support to The Kenney, along with others from the Ontrac management team. Through our ongoing relationship with Ontrac, we will have access to a number of well established senior care services and systems which we do not currently have.
We have asked a few followup questions and will add the answers when we receive them.
ADDED 4:41 PM: We asked The Kenney spokesperson Moraine Byrne for more information on the new LLC, since we couldn’t find it in Washington state corporation records. Her reply: “Seattle Healthcare Investors, LLC is a newly formed corporation just for the purpose of holding the debt on The Kenney. They were incorporated in Delaware but their purpose is to provide the lender relationship for The Kenney. The name of the person with the LLC is Ted McMullan and he lives in Georgia. He is simply the investor lender and will not be the operator nor part of the nonprofit board.” The loan amount, Byrne says, “is essentially the same as what the previous bank loan was, which is just over $21 million dollars.”