News

Erickson: As separate entity, Brooksby safe

By Stacie N. Galang
Staff Writer
Published: October 15, 2009

PEABODY — The future of Erickson Retirement Communities is uncertain, but company officials say Brooksby Village won't be affected because it's a separate entity owned by a nonprofit.

News of Erickson's financial woes have raised questions about the retirement community's viability. Erickson built Brooksby, opened it in 2000 and still manages the property. However, it does not own Brooksby.

"Erickson develops retirement communities and leases them to not-for-profit corporations, which then raise bonds to purchase the real estate from the developer," Erickson spokesman Mel Tansill said by e-mail this week.

It was not clear when the nonprofit board purchased the real estate from Erickson's development business, but city assessor records say "related corporations" purchased the land and buildings in November 2006 for $17.34 million.

At a meeting with Erickson Chairman John Erickson on Friday, Brooksby Village residents were told their community was among those Erickson deemed "mature" and would therefore be largely unaffected by the company's finances.

Tax filings with the state attorney general's office in 2007, the most recent year available, say the nonprofit was formed in Maryland in July 1998. Its board of directors lists only one Brooksby Village resident, Warner Smith.

Smith yesterday did not comment.

James Wingardner, Brooksby Village's executive director, is listed as a board officer. Two messages left with him this week were not returned.

The addresses for seven of the board members, including Wingardner, were listed as being in Baltimore, Md., the state where Erickson is based.