(WSB file photo of The Kenney)

Five years after shelving what was once a major redevelopment plan, and one year after finalizing a new “affiliation” and halving its debt, The Kenney is taking the next step into its future.

Tomorrow (Thursday) night, the retirement center at 7125 Fauntleroy Way SW is hosting a “community meeting” announced earlier this month with this description: “We want you to hear about changes that have taken place in our community over the last 18 months and to share with you some of our plans for the future.”

The meeting’s been listed in the WSB West Seattle Event Calendar a while. In the past few days, The Kenney has distributed hard-copy invitations to nearby residents, prompting several to contact us about it.

This morning, we talked with Larry Foss, The Kenney’s executive director, to find out more about those “future plans.” First, we checked online files, and the only thing that’s in the city-permit system is for what he called some “internal renovations.” But, Foss said, there’s one potential project they’re considering, and want to talk with neighbors about: “Increasing the amount of independent senior housing” on The Kenney’s campus.

Right now, the “independent” housing on site is at the Ballymena Apartments on the west side of The Kenney. Foss says that 34-unit building has a waiting list, so that’s why they want to talk with neighbors as a “first step” toward a possible expansion. (In the original circa-2008 Kenney expansion plan, that building was to be demolished and new apartments were to be built around the campus. But The Kenney has gone through a lot of changes since then, including adding a memory-care unit in 2012.)

He added that the meeting is also a chance for community members to learn more about Heritage. It’s at 6:30 pm Thursday (September 29th) in the community rooms on The Kenney’s lower level, all welcome.

Great morning for a walk (-a-thon)! In this morning’s West Seattle Tuesday preview, we mentioned the first-ever Walk-A-Thon at The Kenney (WSB sponsor), raising money for its Resident Care Fund, which helps ensure that people living there don’t have to move if their lives outlast their assets. We stopped by around midway through, and were told about 50 residents and staffers already had joined in the walk around the west lawn of The Kenney’s landmark Seaview Building.

Six months after we reported on the plan for The Kenney (WSB sponsor) to affiliate with Heritage Ministries and halve its debt, it’s final, according to this announcement:

The Kenney senior living community of West Seattle has cleared all of the necessary hurdles to complete its affiliation with Heritage Ministries, a New York nonprofit, faith-based organization. As a result of the completed affiliation, the amount of The Kenney’s outstanding secured debt will be reduced almost in half from $21.3 million to $10.7 million, a reality that greatly improves The Kenney’s financial position, assuring The Kenney’s ongoing mission to serve seniors in West Seattle.

Heritage Ministries has roots in the Free Methodist Church with sister organizations, such as Seattle Pacific University, in the Seattle area. The legal affiliation of the two organizations has been accomplished by way of Board control. Governance documents of The Kenney have been modified to reflect that Heritage Ministries is now responsible for the appointment of members to The Kenney Board of Directors. The Kenney will remain a nonprofit organization and will continue to have a board of volunteer directors with at least 1/3 of the directors required to be residents of the State of Washington. Resident agreements will be honored and the benevolent care fund for residents will continue.

The Kenney has been operating under an administrative services agreement with Heritage since December of 2014.

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(File photo)
It’s been a long journey for The Kenney (WSB sponsor) over the past six years, including starting and canceling a major overhaul plan. Today, a big announcement – The Kenney is affiliating with New York-based Heritage Ministries and reducing its debt. Here’s the announcement:

The Kenney senior living community of West Seattle has signed a letter of intent to affiliate with Heritage Ministries, a nonprofit, faith-based organization. Through this planned affiliation, The Kenney has also signed a purchase agreement with its current lender to purchase its outstanding debt at a 50% discount.

Heritage Ministries has roots in the Free Methodist Church with sister organizations, such as Seattle Pacific University, in the Seattle area. Heritage Ministries and The Kenney intend to affiliate and to maintain the mission of serving seniors in West Seattle. The Kenney will remain a nonprofit organization and will continue to have a board of volunteer directors. Resident agreements will be honored and the benevolent care fund for residents will continue.

The level of debt incurred by The Kenney was the result of construction of a new assisted living and community space in the 2000s. The construction and loans had occurred prior to the economic downturn and current operations could not sustain that level of debt. The Kenney worked with its lender, Sovereign Bank, for several years to maintain operations and to continue to service the needs of The Kenney’s residents. Ontrac Management Services was brought in to work with The Kenney in summer 2012 after the organization had defaulted on its loan.

In Spring 2014, Sovereign Bank sold The Kenney’s loan to a private lender who agreed to honor the resident contracts and allowed the organization to continue its nonprofit status. In October 2014, the same lender notified The Kenney that it needed to sell the debt before the end of the year. Ontrac Management Services was asked by The Kenney board of directors to find a lender and/or other nonprofit organization to assist with the debt purchase.

With the affiliation plan for Heritage Ministries and The Kenney moving ahead, Ontrac Management will step out of its interim role in December. Larry Foss is being named Executive Director of The Kenney. Mr. Foss joined The Kenney in the finance department and as the licensed nursing home administrator in June 2014. He has more than a decade of experience working in senior living communities as a chief financial officer, executive director and as a nursing home administrator. Mr. Foss is also the current Chair of LeadingAge Washington, which is the nonprofit trade association for senior living and healthcare organizations.

“It has been a privilege to support The Kenney as interim management during the last two years. Our role is now coming to an end. We see that the future is bright for The Kenney in its affiliation with Heritage Ministries,” said Moraine Byrne, President of Ontrac Management Services.

In an October news release, The Kenney said the 50 percent debt reduction would bring its debt down to $10.5 million. It pursued a $150 million redevelopment project between 2008 to 2011, in the end settling on smaller changes such as creation of a Memory Unit. We asked Byrne for a little more elaboration on what “affiliation” means; she replied, “The Kenney will continue to be a 501(c)3 charitable organization. Affiliation means that the corporate member in the bylaws is Heritage Ministries and that The Kenney will continue to be governed by a volunteer board of directors. Heritage Ministries will provide management oversight too.”

(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:

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Three months after The Kenney (WSB sponsor) announced it was exploring the possibility of “sponsorship” by Wesley Homes, there’s no final decision on that yet, but one change has just been made – a new interim CEO is in charge. Here’s the announcement:

William (Bill) Lange is named as the new interim Chief Executive Officer (CEO) for The Kenney, effective October 1, 2013. Mr. Lange assumes this interim role at the time that Ed Mawe, current interim CEO, leaves to take a new position with another retirement organization. Mr. Mawe is an employee of Ontrac Management Services and he was hired in July 2012 to act as an interim CEO. Mr. Lange is also an employee of Ontrac and has been working in a supportive operations role with Mr. Mawe, the Kenney board of directors, and staff over the past year.

“Bill is not a new face to the residents and staff at The Kenney,” said Moraine Byrne, President of Ontrac Management Services. She added, “His knowledge of the current operations and the strategic direction of The Kenney make for a smooth transition as Ed leaves to take his new career opportunity.” Mr. Mawe has accepted a position as Chief Operating Officer of Horizon House, a large retirement community located in [downtown] Seattle.

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Back in April, a spokesperson for The Kenney (WSB sponsor) announced that the continuing-care retirement center was seeking a “sponsor” to take over its operations, and that there were four prospects. Three were named at the time; one of them, Wesley Homes, which operates centers in Des Moines and Auburn, is now the front-runner. Here’s the announcement just in from a representative of The Kenney:

Wesley Homes, based in Des Moines, Washington, has presented a letter of intent to further explore sponsorship of The Kenney in West Seattle. The letter of intent was presented to and accepted by The Kenney board of directors on June 4, 2013.

It is the next step in the process of completing due diligence before Wesley Homes makes a decision to become the new non-profit sponsor. Due diligence typically involves an in-depth review of the operations, physical plant, legal issues and finances, including discussions with the bank lender. The due diligence is expected to take several weeks.

Non-profit sponsors are governed by a volunteer board of directors and within the non-profit sector, the term “sponsorship” is used instead of “ownership.” The Kenney board of directors had interviewed and accepted letters of interest from four potential sponsors.

The other three organizations all cited that they were interested, but that the timing of the transaction or other factors outside of The Kenney prevented them from moving forward at this time.

In today’s complex health care environment, affiliation with another sponsor has proven to benefit senior living providers and the residents they serve. Being part of a larger sponsoring organization often presents opportunities for group purchasing of supplies and equipment resulting in significant savings. Larger sponsoring organizations also have the capacity to implement more efficient systems for billing, accounting, nursing services, dining programs, human resources and marketing.

The Kenney has been under interim management since summer 2012 and the interim management will remain in place through the sponsorship process. Interim Chief Executive Officer, Ed Mawe, with Ontrac Management Services continues to provide staff leadership. The quality services to residents continue in the fine tradition of The Kenney.

According to its website, Wesley Homes has been in operation since 1944, and is associated with the United Methodist Church.

A spokesperson for The Kenney (WSB sponsor) says it’s seeking a “sponsor” to take over its operations, and has four prospects. Here’s the announcement we just received:

The Kenney Retirement Community, located at 7125 Fauntleroy Way SW, Seattle, is in the process of seeking a new sponsor to assume operations of the retirement community.

The Kenney board of directors has been interviewing non-profit, faith-based organizations who share a similar mission of serving seniors. Covenant Retirement Communities, Mennonite Services Northwest, Wesley Homes, and a fourth (yet to be named) have indicated interest in the potential of a transaction to become sponsors, and each is evaluating the feasibility to assume operations of The Kenney later this year.

In today’s changing health care environment, affiliation with other sponsors has proven to benefit senior living providers and the residents they serve. Benefits include group purchasing programs, efficiencies in staffing and systems, and the ability to provide a broader network of services.

Last summer, an interim CEO and Ontrac Management Services were engaged by The Kenney to assist during this transition. Ed Mawe, Interim CEO, and The Kenney board of directors have been communicating with residents, families of residents and staff frequently about the sponsorship search. Communication about the sponsorship search process has been transparent with all parties, sharing discussions about the preference to find a sponsor who shares similar values with the heritage of The Kenney.

The Kenney continues to provide quality continuing care with residential apartments, assisted living, memory care and support, skilled nursing and rehabilitation. Potential sponsors have expressed their intention to continue the services and the fine tradition of care.

The Kenney marked its centennial four years ago. From 2008 through 2011, it pursued a redevelopment plan that eventually was downsized to some standalone changes including the addition of a memory-care unit, opened last year. Meantime, as for today’s announcement, we’re asking a few followup questions and will add to this story when they’re answered.

4:36 PM UPDATE: Ontrac’s Moraine Byrne has replied to our questions: No, The Kenney is “not in danger of closing. All financial obligations are being met (and it’s) operating well within budget.” She says its occupancy is also “strong.”

Residents and staff at The Kenney (WSB sponsor) have been getting to know new CEO Ed Mawe over the past few weeks, but tonight was the first big public event at which he appeared – the continuing-care retirement center’s annual barbecue.

Mawe joined The Kenney last month, not long after the departure of previous CEO Kevin McFeely. That’s according to information provided tonight by Moraine Byrne, president of Ontrac Management Services, part of Covenant Retirement Services, an Illinois-based firm also recently hired by The Kenney, to help with management and positioning. Byrne tells WSB that Mawe has “many years of serving senior adults in the Tacoma and Portland areas.” Online research shows Mawe’s past leadership roles include tenures at Franke Tobey Jones in Tacoma and Mary’s Woods in Portland.

Back to the barbecue – The Kenney’s park-like northwest lawn provided shade, both trees and tents, and a chance for residents, relatives, and neighbors to enjoy each other’s company.

The barbecue is an annual August tradition.

Students, teachers, and school staffers aren’t the only ones marking farewells as this week comes to an end. Thursday afternoon at The Kenney (WSB sponsor), a reception honored departing CEO Kevin McFeely, who’s leaving after 9 years to run The Hearthstone in Green Lake (as reported here a month ago). Among those offering tributes at the celebration, marketing director Karmen Hudson:

His replacement has not yet been named. The Kenney is north of Lincoln Park, with history going back more than a century.

A new unit at The Kenney (WSB sponsor) is now open, and was shown off at an open house tonight. The Memory Care Community was once part of a major redevelopment plan; though much of the plan was shelved, The Kenney saw a need to offer this as part of its “continuum of care” philosophy, and continued with the project.

There are 16 beds in the Memory Care Community – with residents about to start moving in – and they’re part of either private or shared apartments, as well as a dining/activity room:

Residents will have use of a courtyard, too.

As noted in The Kenney’s announcement, the design and decor were chosen for a sense of serenity. It’s not just the facility, though; The Kenney is staffing it around the clock with what they describe as “certified nursing assistants with specialized dementia training,” and special programming and activities are planned.

(2009 photo by Christopher Boffoli for WSB; during the now-ended process, the cupola-topped Seaview Building became an official city landmark)
It’s been three years since the historic West Seattle retirement complex known as The Kenney first went public with an ambitious – and controversial – plan to redevelop much of its Fauntleroy Way campus and dramatically expand its capacity. (WSB broke the story in August 2008 – here’s our first report.) The plan has undergone a variety of changes along the way – with myriad community meetings, both part of the official process, and part of the organization seeking feedback. Last summer, The Kenney had told us the plan was in “retooling mode”; but now, most of the plan is being shelved, at least for a few years, according to this announcement just in from The Kenney management:

(Today) The Kenney will remove the four Notice of Proposed Land Use Action signs that line the perimeter of their campus.

“There are a couple of issues,” says Kevin McFeely, President and CEO of The Kenney. “For one, there’s a new economic reality we’re facing that people are having a much harder time selling their home; something that’s concurrent with moving into a retirement community. Second, it’s much tougher to find lenders for new building projects. As we looked at this project we realized the need to scale down the redevelopment plan to continue to reach the needs of our current residents, our future residents and our neighbors.”

The focus for The Kenney will be on how to improve their current campus and programs. “The people that are inquiring into The Kenney are of a different mindset than those we’ve seen in the past,” says McFeely. “They want choices of programs and amenities, smaller but more efficient use of space apartments and options for various lifestyles. We’ve decided to concentrate on upgrading the infrastructure of our 100 year old campus, expanding our programs and services, and focusing on how we can reach the needs and wants of the seniors of the future.”

Redevelopment is not out of sight, however. The Kenney has begun the plans for a Memory Care Unit to be open fall/winter of 2011. There’s also more building on the horizon, but it may be a few years away. “We do need to have more people on campus in order to survive as a community,” says McFeely. “Not the original 400 we had once planned, but maybe 275-300. This new project will most likely start in the next two to five years.”

When the original $150 million redevelopment plan was announced in 2008, there was some community unrest. “I’d like to thank the community for hanging in there with us,” says McFeely. “We’ve gone through a lot of changes in the plan and I know it’s been tough not knowing. Scaling back will really meet the needs of our community.”

Our archive of coverage of that process is here, newest to oldest.