The Glebe: Elderly at Risk
Posted by
Dan FrithSeptember 08, 2008 9:14 AMTags:
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A few years ago Virginia Baptist Homes opened a "Cadillac" continuing care retirement facility just outside of Roanoke, Virginia. The facility, built in the countryside and called "The Glebe" was designed to attract the the wealthy. How wealthy? How about entrance fees which can range up to $324,000 for one person, then monthly charges thereafter! View a video of The Glebe here.
The future of The Glebe is in doubt for two reasons. First, it doesn't appear the development was on sound financial footing to begin with. Demand has been far below what is needed to put this continuing care retirement facility in the black financially. The Glebe is only 68 percent full, and it's two months overdue on $15 million in loans from investors whose money paid for construction costs. Its continuing financial viability assumes a 93 percent occupancy rate. The second problem deals with the fact that the investors/Virginia Baptist Homes must have assumed it would be free of local property taxes because of its affiliation with the Baptist Church. Real estate tax exemptions for churches and religion-based, nonprofit retirement communities are common in Virginia. However, the assisted-living center doesn't employ a minister, nor does it offer religious services other than what residents arrange on their own. Residents and employees can be of any religion, as well as atheist. As a result, the local county tax authority is demanding back taxes of over $500,000 and annual taxes of about $227,000. This issue of whether The Glebe must pay real estate taxes will soon be decided by the Virginia Supreme Court and it doesn't look good for The Glebe.
My take: A large number of elderly who worked and saved may be out of a lot of money if the facility goes under. Did the developers mislead the public over the financial viability of the project/ If so, church or no church, I hope all involved are held financially responsible for the damage they have caused.