Williamsburg Landing, Inc. Disclosure Statement April
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WILLIAMSBURG LANDING, INC. DISCLOSURE STATEMENT APRIL 29, 2020 A copy of this Disclosure Statement has been filed with the State Corporation Commission pursuant to Chapter 49, Title 38.2 of the Code of Virginia of 1950, as amended. Such filing does not constitute approval, recommendation or endorsement of the facility by the State Corporation Commission. Certified Financial Statements and Financial Condition Attached as Appendix C are the audited financial statements of Williamsburg Landing for the two years ended December 31, 2018 and 2019. Below is a summary of financial condition for Williamsburg Landing: Summary of Financial Information as of 12/31/2019 Current Year Prior Year Total Assets $181,661,223 $175,740,731 Total Liabilities $238,393,308 $231,948,655 Total Net Assets -$58,810,565 $-58,290,849 Total Revenues $44,033,513 $35,996,009 Total Expenses $42,990,093 $38,122,788 Operating Income (Loss) $1,043,420 $-2,126,779 Net Income (Loss) -$519,716 $-4,785,752 Narrative on financial condition: In 2019, operating revenue was 4.1% below budget and operating expenses were 5.2% below budget resulting in a net operating margin of 10.6% which was slightly above target. The debt service coverage ratio ended 2019 at 1.5 compared to a budget of 1.8, and was above the minimum loan requirement of 1.20. At the end of 2019, days cash on hand was 249 which is below budget of 253, and was above the minimum loan requirement of 120. The change in unrestricted net deficit was a positive $519,716 primarily due to losses from operations and net unrealized market activity on investments For more detailed information, please refer to Appendix C attached for the most recent financial audit results. Occupancy Information Capacity of Units Average Occupancy Percentage Occupancy Independent Living 317 287.5 92.5% Assisted Living 74 58.9 79.6% Nursing 73 52.5 71.9% Memory Support 24 19.4 81% Independent Advice. Prospective residents should consult independent legal and tax advisors regarding residency at Williamsburg Landing and the tax and legal implications as would be prudent with any other major financial decision. i TABLE OF CONTENTS Certified Financial Statements and Financial Condition ........................................................... i Continuing Care Provider. ........................................................................................................... 1 Officers, Directors, Trustees, Managing or General Partners, and Certain Persons Who Hold Equity or Beneficial Interests; Real Property................................................................... 1 Directors. ......................................................................................................................................1 Election of Directors. ...................................................................................................................2 Officers. .......................................................................................................................................3 Management. ................................................................................................................................4 Beneficial Interests.......................................................................................................................4 Experience of Owner. ..................................................................................................................4 Experience of Management. ........................................................................................................4 Acquisition of Goods and Services. .............................................................................................6 Criminal, Civil and Regulatory Proceedings. ..............................................................................6 Affiliations. ..................................................................................................................................7 Tax Status.....................................................................................................................................7 Ownership, Location and Description of Real Property. .............................................................7 Services Provided; Fees; Financial; Funding. ............................................................................ 9 Residency and General Services. .................................................................................................9 Health Care Services. .................................................................................................................10 Food Service. .............................................................................................................................11 Utilities. ......................................................................................................................................11 Fees Required of Residents. .......................................................................................................11 Joint Occupancy. ........................................................................................................................12 Modifications to Residential Units. ...........................................................................................12 Subordination. ............................................................................................................................12 Escrow and Refund of Deposits. ................................................................................................13 Reserve Funding; Indebtedness. ................................................................................................13 Admission Criteria/Process for New Residents. ....................................................................... 17 Future Residency List. ...............................................................................................................17 Ready Status List ($10,000 Deposit). ........................................................................................17 Decision Process. .......................................................................................................................17 Residency Agreement Date........................................................................................................18 Effective Occupancy Date. ........................................................................................................18 Refunds. .....................................................................................................................................19 Prior to the Effective Occupancy Date.............................................................................. 19 Following the Effective Occupancy Date .......................................................................... 19 Williamsburg Landing Assisted Living and Williamsburg Landing Memory Support Home .................................................................................................................................... 19 Access to Facility by Non-Residents. ........................................................................................20 Other Matters. ............................................................................................................................. 21 General. ......................................................................................................................................21 Fluctuation in Interest Rates. .....................................................................................................21 Increases in Medical Costs.........................................................................................................21 Complaint Resolution/Concerns. ...............................................................................................21 Arbitration. .................................................................................................................................22 ii Pro Forma Income Statement.....................................................................................................22 APPENDICES APPENDIX A1: Form of Residency Agreement Independent Living Residential Unit APPENDIX A2: Form of Residency Agreement Independent Living Residential Unit- Security Plus Plan APPENDIX A3: Form of Residency Agreement - Assisted Living Unit (Woodhaven Manor) APPENDIX A4: Form of Residency Agreement – Memory Support Home Assisted Living Unit (Woodhaven House) APPENDIX A5: Form of Amendment to Residency Agreement – Transfer from Memory Support Home Assisted Living Unit to Nursing Center APPENDIX A6: Form of Amendment to Residency Agreement – Transfer from Independent Living Unit to Nursing Center APPENDIX A7: Form of Amendment to Residency Agreement – Transfer from Independent Living Unit to Assisted Living Unit APPENDIX A8: Form of Amendment to Residency Agreement – Transfer from Assisted Living Unit to Nursing Center APPENDIX A9: Form of Amendment to Residency Agreement – Transfer from Assisted Living Unit to Memory Support Home Assisted Living Unit APPENDIX A10: Form of Amendment to Residency Agreement – Transfer from Independent Living Unit to Memory Support Home Assisted Living Unit APPENDIX B: Fee Schedule APPENDIX C: Audited Financial Statements APPENDIX D: Pro-Forma of Revenues and Expenses Statement iii Continuing Care Provider. Williamsburg Landing, Inc. 5700 Williamsburg Landing Drive Williamsburg, Virginia 23185-3779 (757) 253-0303