State health department seeks intervention in Fort Collins Memory Care case

FORT COLLINS — The Colorado Department of Public Health and Environment has petitioned Larimer County District Court to intervene in the Fort Collins Memory Care receivership case.

Fort Collins Memory Care LLC’s Aspens of Fort Collins facility was forced into receivership by its lender, BRMK Lending LLC. The lender sought and received an emergency order that immediately threw the facility into receivership under Trident Pacific Real Estate Group Inc.

However, Colorado’s attorney general, on behalf of the CDPHE, said that Trident failed to notify the state of the change of control of the facility, in violation of the facility’s license. When Fort Collins Memory Care renewed its license, it “listed Noah Drever as the owner, operator and chief executive officer. … Mr. Drever answered detailed background questions” and was issued a renewed license effective until Dec. 4, 2024.

Drever, when contacted by BizWest today, said that even though BRMK considers the license to be an asset under its receivership control, “they can’t operate under our license. Fort Collins Memory Care holds the license,” he said, including all the liability that comes with it.

Without having operational control, Drever said, his company can’t assure that patients are treated with the care required by the license.

“They’re (BRMK) treating this like a real estate deal, but it’s a health care deal,” he said.

CDPHE said in its motion that the court ordered the receiver to take charge, including providing “written notice of the action to any persons … affected by this order.” 

“Despite this clear and unambiguous language in the court’s order requiring the receiver to apply for and obtain any necessary license and government approval, the receiver failed to contact CDPHE …”

“While the receiver and BRMK argue that no transfer of ownership occurred … the order therefore has the effect of an involuntary transfer in violation of” Colorado law, the attorney general wrote, and the facility “is now operating … without a license in violation of state law.”

The motion asked the court to permit the state’s intervention.

An email to BRMK’s attorney, Peter Murphy with Markus Williams Young and Hunsicker LLC, was not acknowledged prior to publication.

The case is BRMK Lending LLC v. Fort Collins Memory Care LLC, case number 24cv300980, filed in Larimer County District Court.

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