Memory-care company asks court to stay the course

FORT COLLINS — The company attempting to wrest control of Fort Collins Memory Care from its operators doesn’t understand what a memory-care facility is nor is it being honest with the court about its intentions, the memory-care company told Larimer County District Court this week.

BRMK Lending LLC asked the court in February to place Aspens at Fort Collins, a facility operated by Fort Collins Memory Care LLC, into receivership because of imminent danger to the facility from a sprinkler leak. 

The judge complied, but when the state of Colorado intervened, the judge reversed course. The state said that the receiver was not licensed to operate a memory-care facility and did not comply with state regulations, thus placing patients in danger.

BRMK said in a motion to the court filed March 12 that the court erred because it was seeking an “asset receivership” not an “equity receivership” that would imply that it had operational control and patient responsibility.

Fort Collins Memory Care responded to that motion Monday saying that “a memory care facility is not an office or strip mall” and that BRMK used filings that “were identical to those used for office buildings and strip malls. The pleadings designated the receiver to be ultimately responsible for the health and well-being of approximately 59 memory care patients, a task for which the receiver is neither licensed nor qualified.”

Further, “the order appointing a receiver was a transparent attempt by the lender to sell FCMC as a going concern, i.e., with a revenue stream generated by 59 residents,” the motion claimed.

The memory-care company and its lender have been engaged in an ongoing conflict over whether the lender will permit the borrower to repay the loan; Fort Collins Memory Care has said that it has a local lender willing to finance the operation.

The filing Monday said that BRMK has been unable to “reconcile how FCMC is able to operate and comply with applicable regulations if it has no money (rental fees) and does not have access to the real property and personal property …or its books and records” as might be required under an asset receivership.

The company asked the court to not reverse course again. “Reconsideration is not warranted and should be denied entirely,” the response said.

The case is BRMK Lending LLC v. Fort Collins Memory Care LLC, case number 2024cv30090, filed in Larimer County District Court.

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