Louisiana Baptist Convention messengers agreed to sell the Baptist Retirement
Center in Arcadia last week, marking a transition in the denominations
ministry to senior adults.
Louisiana Baptist Convention messengers agreed to sell the Baptist Retirement
Center in Arcadia last week, marking a transition in the denominations
ministry to senior adults.
In approving the sale, messengers also named a committee to recommend how funds
from the sale are to be used.
The decision to sell the facility passed easily on a show-of-ballots vote.
It ended months of struggle by the Louisiana Baptist facility to address pressing
financial needs.
The retirement center has been experiencing considerable financial pressures
– and trustees announced plans earlier this year to try to return it to solid
footing.
However, by August, pressure had increased – and center trustees voted to sell
the facility instead. They emphasized the action was taken quickly because of
fears that ongoing problems could lead to an exodus of residents from the center
and result in a loss of value for the facility.
A tentative sales agreement for $5 million was signed with Danny Prince of
Paramount Healthcare. Prince is a member at First Baptist Church of Ruston and
stepped in with interim management at the Arcadia center after Administrator
Bob Nelson left that post this summer.
The LBC Executive Board approved the sales agreement in October. However, the
arrangement had to be finalized by convention messengers last week as well.
In presenting the recommendation to sell, center trustee Chair Bobby Dye told
messengers it was the culmination of an ongoing process. “This decision
did not come easily,” recounted Dye, pastor at Central Baptist Church in
Bossier City. “The unanimous vote of the board, however, indicated it was
the right thing to do.”
Dye cited four factors contributing to the decision to sell – the changing
healthcare industry that makes the existence of single-facility centers more
difficult, increased insurance and liability costs, the formation of a union
by center employees and the inability to reimburse employees adequately.
“The sale of the Baptist Retirement Center is both bitter and sweet, …”
Dye said. “For 43 years, the Baptist Retirement Center has created a heritage
of caring.”
In making his recommendation, Dye urged Louisiana Baptists to continue a ministry
of caring to the aged.
In discussion, Lamar Skinner from First Baptist Church of Arcadia sought to
amend the sale recommendation.
However, LBC President Steve James from Trinity Baptist Church in Lake Charles
said all that messengers were empowered to do was vote for or against the recommendation
to sell. An amendment was out of order, he explained, despite Skinners
protest.
Diane Reeder from Westlake Baptist Church in Shreveport then asked three questions
of Dye – Was the sales price the result of the highest bidder? Was the sales
price equal to the appraised value of the facility? and After the sale, how
long would the retirement center board continue to exist?
Dye noted that time has been critical in the matter, and there was a narrow
window for the sale to take place. He reiterated concerns that a delay could
cause a loss in value for the retirement facility.
Thus, the sale was not open to bids.
“(But) The price that we agreed upon is a very good figure,” Dye
insisted. “This was not a fire sale. Five million is a good figure for
that facility.”
He explained the $5 million figure falls within the market value and disposition
value of the center. The former reflects what the center could be sold for if
a marketing campaign was entered into and time was given for negotiations. The
latter reflects a realistic figure for sale of the facility as it is.
Dye also noted the board will continue in existence until it no longer is needed.
He explained that the board will continue to manage the center assets and meet
necessary legal liabilities following the sale.
Ann Skinner from First Baptist Church of Arcadia then spoke against the sale,
saying time should not be an issue and bids for the facility should be sought.
Paul Blange from Memorial Baptist Church in Metairie then asked what would
happen to center employees after the sale and whether prices would rise for
residents.
LBC Attorney Greg Erwin of Baton Rouge noted that Prince had agreed to retain
current employees.
Dye said prices are set by the government for Medicare and Medicaid patients
and that prices for private patients are not expected to change following the
sale.
Lamar Skinner then addressed the issue again, reading an earlier letter from
James, which said he would have a chance to offer amendments to the sale recommendation.
James said he had written the letter before he had talked with counsel and
learned amendments could not be offered.
Skinner then spoke against the sale recommendation, saying his amendment would
have called for a return of 15 acres from the land originally donated for the
retirement center to the Bienville Baptist Association.
Discussion ended – and messengers approved the sale.
As approved, indebtedness of the center will be paid from the proceeds of the
sale. Current indebtedness is estimated between $2 million and $2.5 million.
The balance of the sale proceeds are to be invested in the Louisiana Baptist
Foundation. Retirement center trustees and the financial policies and practices
subcommittee of the LBC Executive Board will study the issue and recommend how
remaining funds should be used and what the future of the Baptist Retirement
Center of Arcadia, Inc., shall be.
That recommendation will require approval of the LBC Executive Board and convention
messengers. No funds will be able to be spent – except for necessary expenses
related to the center – without convention approval. A full or interim report
from the center trustees and Executive Board subcommittee is to be presented
to the 2004 state convention.
Minutes after approval of the sale, James addressed messengers, apologizing
for not communicating with Skinner after he learned no amendments could be offered.
He asked the convention and Skinner for forgiveness.
Skinner responded, thanking James for his apology and urging Louisiana Baptists
to continue ministry to the aged.