Watermark to terminate management contracts with 7 Legacy properties in New York

Tucson, AZ-based Watermark Retirement Communities filed a Worker Adjustment and Retraining Notification (WARN) Thursday with the state of New York, announcing the termination of management contracts with several Legacy retirement communities in the Rochecher, NY, area. 

The WARN was a legally required step as the affected communities are under receivership. Under state law, covered businesses must provide early warnings of closures and layoffs to the state department of labor and all affected employees

“Ownership of seven Legacy communities (Cranberry Landing, Erie Station, Fairways, Grande’Vie, Park Crescent, Parklands and Willow Pond) is in the process of being transferred to the lender through a receivership proceeding,” Watermark Director of Communications and Public Relations Vicki Doyle, APR, told the McKnight’s Business Daily. 

“While Watermark will no longer manage day-to-day operations at these Legacy communities, we and the owner group are committed to a smooth transition to the new owner and management team,” she added.

According to the notification, almost 400 employees could face layoffs on March 2. Rochester news station WHAM, however, reported that, according to the court-appointed receiver, attorney Michael Flanigan, “no jobs will be lost or eliminated as the entities are ‘just jumping through the hoops under NY law to move employees from one employer to another.’”

Watermark will continue as the operating manager for Legacy at Clover Blossom and Legacy at Maiden Park in the Rochester area, Doyle said. Overall, 36-year-old Watermark Retirement Communities manages more than 60 senior living communities in 19 states. 

“Watermark values our Legacy senior living communities across Rochester and is immensely proud of the success we have achieved as their operating management company since 2017. We realize that many owner groups — the entities who secure our services — are facing challenging economic environments nationwide, which can prompt property manager changes unrelated to manager performance,” Doyle said.