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Gatesway Foundation to sell real estate assets

Journal Record - 6/4/2018

BROKEN ARROW Gatesway Foundation of Broken Arrow is selling its real estate assets to eliminate debt and improve liquidity. The foundation was founded in 1962 by Helen Gates to provide services for people with intellectual disabilities. The assets include Gatesway’s 41-acre campus, a commercial building in the Rose District and several other properties. Some of the assets are no longer able to be efficiently operated for the intended purpose of providing housing, meals, transportation, and other services for the intellectually disabled clients. Upon completion of the sale, Gatesway will be better positioned to deliver services to its clients with newer and more efficient buildings on its campus and through leased and professionally managed buildings. The properties are listed through Chinowth & Cohen Tulsa.“The organization’s liquidity has been adversely impacted by years of inadequate funding, both from the state as well as private resources,” said Gloria Morton, Gatesway’s president. “While the state’s announcement of increased rates effective July 1 will help our operations, the reality is that the last several years of underfunding can’t be reversed without a retroactive adjustment.” Morton went on to say that the last rate increase by the state for Gatesway’s clients was in 2012, which was followed by a rate cut in 2014. “This prolonged underfunding, combined with industry-wide challenges including the increasing cost of care, overtime, and turnover, has resulted in the loss of over $5 million in the last several years,” Morton said. “Over the last year, Gatesway has undergone significant transformation activities including wage reductions, layoffs, and outsourcing. The sale of these assets to eliminate the outstanding line of credit balance is a crucial step of these transformation efforts to reduce overhead, interest, and improve liquidity.”

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