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The developer of a proposed 650,000-square-foot Amazon distribution warehouse on 183 acres at the Waterbury/Naugatuck Industrial Park has been granted another extension by Waterbury officials to complete the sale and close on the property.

Waterbury Mayor Paul Pernerewski approved a nine-month extension of the deadline, giving the developer until next August to conduct due diligence in completing the deal. The extension comes after a small but vocal group of Naugatuck and Waterbury residents spoke out against the plans for the massive logistics Amazon facility to be built by the Bluewater Property Group, headquartered in New York City and suburban Philadelphia.

The intial presentation of the plans occurred in early September.

Thomas Hyde, chief executive officer of Naugatuck Valley Regional Development Corp. which is representing the two communities in the process, said Wednesday that the public shouldn't read anything into Bluewater's decision to seek another extension for the closing date.

"This is a big project and it takes time to work through everything," Hyde said. "At this point, the project needs approval from the wetlands commission in Naugatuck and the state Department of Transportation because of the amount of traffic this facility is expected to generate."

He said developers will sometimes purchase a property where a large facility is being planned, making the closing of the sale contingent on obtaining the necessary state and local land use approvals. In some cases, a developer will purchase the property first and then seek the necessary approvals, Hyde said.

"In some ways doing it this way is better for the communities involved," he said of the extension on the closing date. "In cases where the purchase of the property comes first, if the project falls through, then you worry about the property's owner just sitting on the property and doing nothing with it."

Pernerewski said Wednesday that city officials have remained in regular contact with Bluewater executives and "the conversations that have had with them have all been positive."

"When they sought the first extension last October, we were a little concerned because in a lot of other places they were building, they were scrapping their plans," Pernerewski said. "But they've made a lot of progress on this project since then and we're very confident this will continue to move forward. This is a very difficult site that they've chosen, especially in terms of the blasting they need to do."

Officials with Bluewater were not immediately available for comment on receiving another extension for closing on the property. A hearing on the project has been scheduled for Oct. 3 in Naugatuck.

Bluewater owns a number of logistics facilities in the Northeast, including one in Johnston, Rhode Island, and another under construction in Charlton, Massachusetts, not far from the Connecticut line and Interstate 84.

The developer's plans were first made public in January 2022.

Concerns raised by residents of the two communities at the informational meeting in early September included truck and employee vehicles snarling traffic at certain points during the day; damage to nearby structures from blasting rock to level the site during construction; any residual impact on nearby property values in having a busy industrial facility in close proximity; and the facility's overall environmental footprint.

Includes prior reporting by Liese Klein, Paul Schott and Alex Soule.

This story is part of CT Mirror Explains, an ongoing effort to distill our wide-ranging reporting into a "what you need to know" format and provide practical information to our readers.

Athena Health Care Systems has lost federal Medicare funding for nearly 200 residents living at the Abbott Terrace Health Center in Waterbury, causing the company to prepare for the closure of the nursing home.

The Centers for Medicare and Medicaid Services notified state officials and Athena that because of the “facility’s failure to meet Medicare’s basic health and safety requirements,” funding would be stopped as of Sept. 10 for any new patients and within 30 days for all patients.

The unprecedented step by federal officials in effect will close the 205-bed facility because most of its residents are Medicaid or Medicare recipients and not private payers. It comes amid growing financial problems and legislators’ concerns about patient care at Athena facilities.

Here’s what to know.

Department of Public Health officials made several visits to Abbott Terrace over the first six months of this year, during which concerns were raised about the facility itself and patient care.

The inspections showed staff shortages, particularly for nurses, large holes in the tile floors and at least one incident where an employee told a resident with incontinence problems “they could smell them in the hallway.”

[RELATED: Athena nursing home in Waterbury loses federal funding]

The federal Medicare website lists a 1-star rating for Abbott Terrace, with “much below average” health inspections and “below average” quality measures.

A spokeswoman for the company said the Department of Public Health had mandated updates to the building, particularly the flooring, and Athena invested $200,000 in renovating floors.

The company had also “earmarked additional dollars” for further upgrades, the spokeswoman, Savannah Ragali, said. She did not specify an amount.

“Our team did everything possible in the past several weeks to address the physical plant concerns identified by DPH,” Ragali said. “We have invested significant financial resources in returning our facility to compliance by upgrading floors, doors and other identified facility infrastructure. We believed that the identified issues had been successfully resolved.”

Following reports that CMS had granted a stay to Abbott Terrace, Ragali said the nursing home “has not been notified of any change to its status” and continues to prepare to close.

When asked if a stay had been granted, state officials referred The Connecticut Mirror to CMS.

A spokesperson from CMS declined to confirm or deny it, stating: “To protect the integrity of our survey process, we are unable to provide additional information at this time.”

Residents have begun receiving discharge notices ahead of the closure, said Mairead Painter, the state’s long-term care ombudsman.

Ragali said Abbott Terrace is looking for locations for its residents to move to and possible transfers to other Athena sites for its nearly 300 employees.

“Residents who have voluntarily decided to discharge from the center are being discharged under their rights,” Ragali said. “Based on the research from our staff at Abbott Terrace, there are 110-skilled nursing beds within a 15-mile radius of Abbott Terrace, with zero beds available on a secure dementia unit.”

Painter said her staff at the Office of the Long-Term Care Ombudsman is working with Abbott Terrace residents as well to ensure that their rights are being protected and preferences are taken into account.

Department of Public Health Commissioner Manisha Juthani and Department of Social Services Commissioner Andrea Barton Reeves said the announcement does not mean that Abbott’s residents have lost their coverage. Residents will still be covered when they move to a facility that participates in the Medicare and Medicaid programs.

An embattled Waterbury nursing home, whose Medicare and Medicaid funding recently was terminated, will remain open for an additional month as residents are being relocated to other facilities.

The Centers for Medicare and Medicaid Services had notified Abbott Terrace in August that it would lose funding beginning Sept. 10 for any new patients and within 30 days for all residents. The move by federal officials effectively closes the 205-bed facility because most of the residents are Medicaid or Medicare recipients and not private payers.

Last week, Abbott Terrace was issued a new termination date of Oct. 9. The facility now plans to move all of its 166 residents out of the building by Nov. 8, said Savannah Ragali, a spokeswoman for Athena Health Care Systems, which owns the facility.

“During this incredibly challenging time, our focus remains steadfast on our residents, their families, and our employees,” she said. “We are committed to working closely with each resident and their responsible parties to help them find suitable care at other facilities. We are equally devoted to supporting our staff — many of whom have served this community for decades — with employment opportunities, either within Athena’s network or locally.”

[RELATED: Abbott Terrace Health Center lost its federal funding. What’s going on?]

Abbott Terrace employs 287 workers, “including 11 team members who have been with us for 30 to 38 years,” Ragali said.

In their letter to Abbott Terrace managers, CMS officials noted that involuntary termination of a provider agreement is generally the last resort after all other attempts to remedy deficiencies at a nursing home are exhausted.

State Department of Public Health officials made several visits to Abbott Terrace over the first six months of this year. The inspections revealed staff shortages, particularly among nurses, large holes in the tile floors and at least one incident where an employee told a resident with incontinence problems “they could smell them in the hallway.”

Ragali said the health department had mandated updates to the building, particularly the flooring, and Athena invested $200,000 in upgrading floors in “specified areas.”

“The facility also earmarked additional dollars for further renovations to benefit the quality of life and life safety of the residents at Abbott Terrace,” Ragali said. She did not specify an amount.

The health department identified further areas needing renovation, including two doors that Ragali said were upgraded.

“Our team did everything possible in the past several weeks to address the physical plant concerns identified by DPH,” she said.

[RELATED: Athena nursing home in Waterbury loses federal funding]

Athena owns 14 nursing homes in Connecticut, including Abbott Terrace.

The state Long-Term Care Ombudsman’s office is helping residents find alternative facilities and aiding in their transition.

“The Office of the State Ombudsman is concerned whenever there is a nursing home closure because it can leave residents and their families facing uncertainty and distress,” Mairead Painter, the ombudsman, said. “Closures raise significant issues regarding the continuity of care, displacement of residents, and the overall well-being of those affected.

“We know that the sudden closure of homes disrupts the stability and security that residents depend on, potentially leading to adverse health effects and emotional distress, but we hope that this outweighs the risks associated with a facility that is not able to offer the appropriate care residents deserve.”

This story has been updated.

The federal agency that oversees long-term care facilities has informed Athena Health Care that it will no longer be getting federal Medicare funding for nearly 200 residents living at the Abbott Terrace Health Center in Waterbury.

The Centers for Medicaid and Medicare Services notified state officials as well as Athena Tuesday evening that because of the “facility’s failure to meet Medicare’s basic health and safety requirements,” funding will be stopped as of Sept. 10 for any new patients and within 30 days for all patients.

The unprecedented step by federal officials in effect will close the 205-bed facility because most of its residents are Medicaid or Medicare recipients and not private payers. State officials said late Tuesday night they will be working with the Long Term Care Ombudsman’s office to relocate residents.

“Involuntary termination of a provider agreement is generally a last resort after all other attempts to remedy the deficiencies at a facility have been exhausted,” the CMS letter states.

“In this instance, CMS has found that Abbott Terrace Health Center is out of compliance with CMS’ health and safety requirements. While we understand that relocation of residents and patients can be challenging for all parties involved, CMS prioritizes patient safety and care quality.”

Athena officials said they are “aggressively” working with state and federal lawmakers from the area to avoid closing the facility, but “at this time we must prepare for the closure.”

A spokeswoman for the company said the Department of Public Health had mandated updates to the building, particularly the flooring, and Athena invested $200,000 in upgrading floors in “specified areas.”

“The facility had also earmarked additional dollars for further renovations to benefit the quality of life and life safety of the residents at Abbott Terrace,” the spokeswoman, Savannah Ragali, said. She did not specify an amount.

The health department identified further areas needing renovation, including two doors that Ragali said were upgraded.

“Though we addressed all issues and had expected to achieve compliance in early September, the facility was notified by the Centers for Medicare and Medicaid that they terminated our participation in the Medicare and Medicaid programs,” she said. “In turn, this will result in the inability for Abbott Terrace to operate and require closure due to the loss of federal and state reimbursement.

“Our team did everything possible in the past several weeks to address the physical plant concerns identified by DPH.”

Department of Public Health Commissioner Manisha Juthani and Department of Social Services Commissioner Andrea Barton Reeves issued a joint statement Tuesday evening.

“Today’s relatively unprecedented decision by CMS was not taken lightly and was necessitated by the repeated failures of Abbott Terrace’s owner and management team to prioritize the health and safety of its residents,” the commissioners said.

The commissioners said the announcement does not mean that Abbott’s residents have lost their coverage. Residents will still be covered when they move to a facility that participates in the Medicare and Medicaid programs.

“Our focus now turns to ensuring that Abbott Terrace’s owner and management use the next 30 days to assist residents with finding and transitioning to new living arrangements while also adhering to the regulations governing residents’ health, safety, and well-being at the facility,” they said.

“DPH will have monitors at Abbott Terrace daily until the last resident has left the facility. Our agencies will also work with the Long Term Care Ombudsman to help ensure residents understand their rights, explore available living arrangement options, and have as smooth a transition as possible to their next home.”

Mairead Painter, the state’s long-term care ombudsman, said the termination raises “significant issues” about continuity of care, potential displacement of residents and the well-being of people who live at the facility.

“The Office of the State Ombudsman is deeply concerned about the recent announcement that Abbott Terrace, a skilled nursing facility in Waterbury, had their Medicare and Medicaid provider agreement terminated. This leaves many residents and their families vulnerable as they face uncertainty and potential distress,” Painter said Tuesday.

“State oversight agencies work to ensure that the skilled nursing facilities in Connecticut provide good quality care. However, my office and state oversight agencies can only do so much,” she said. “It is the responsibility of the facility, its owners, and management companies [to] maintain financial stability and deliver quality care. If they are not stable or choose to put profits over the residents in the facility, then the outcome and care concerns can be significant.”

Painter said while she waits to hear what’s next for the facility, her office is helping ensure residents’ rights are upheld and is providing emotional support to patients.

“We are here to listen to their concerns, offer guidance and connect them with resources that can help them through this difficult period,” she said.

Abbott Terrace is Athena’s largest remaining facility. It has 205 beds, and 192 were occupied as of the end of August, according to DSS records.

DPH officials made several visits to Abbott Terrace over the first six months of this year. The inspections showed staff shortages, particularly nurses, large holes in the tile floors and at least one incident where an employee told a resident with incontinence problems “they could smell them in the hallway.”

State officials have been considering an array of options for Abbott Terrace, including installing a temporary manager or placing the facility in receivership, according to people with knowledge of the discussions.

The Connecticut Mirror has chronicled the growing financial problems at Athena over the past 18 months and legislators’ concerns about how the fiscal troubles are impacting residents’ care.

Several employees have contacted The CT Mirror with stories of being unable to pay medical bills and having medical procedures canceled because Athena owed nearly $3 million in employee health care claims.

They also owe back taxes to several municipalities and closed two nursing homes late last year: the Crestfield Rehabilitation Center in Manchester and Middlesex Health Care Center in Middletown.

Athena also recently sold five facilities — Newtown Rehabilitation & Health Care Center, Beacon Brook Health Center in Naugatuck, Montowese Health & Rehabilitation Center in North Haven, Sharon Health Center and Evergreen Health Care Center in Stafford Springs — to National Health Care earlier this year.

Athena still owns 14 long-term care facilities including Abbott Terrace. State officials have been discussing whether there will be a need to place other facilities in receivership.

Dave AltimariInvestigative Reporter

daltimari@ctmirror.org

Dave does in-depth investigative reporting for CT Mirror. His work focuses on government accountability including financial oversight, abuse of power, corruption, safety monitoring, and compliance with law. Before joining CT Mirror Altimari spent 23 years at the Hartford Courant breaking some of the state’s biggest, most impactful investigative stories.

More by Dave Altimari

Jenna CarlessoInvestigative Reporter

Jenna is a reporter on The Connecticut Mirror’s investigative desk. Her reporting on gaps in Connecticut’s elder care system prompted sweeping changes in nursing home and home care policy. Jenna has also covered lapses in long-term care facilities, investigated the impact of cyberattacks on hospitals, and uncovered the questionable dealings of health ministry groups that masquerade as insurance. Her reporting sparked reforms in health care and government oversight, helped erase medical debt for Connecticut residents, and led to the indictments of developers in a major state project. Her work has been recognized by the National Press Foundation and the Association of Health Care Journalists. Before joining CT Mirror, she was a reporter at The Hartford Courant, where she covered government in the capital city with a focus on corruption, theft of taxpayer funds, and ethical violations.