Editor's note: The projected cost of construction of the new senior housing proposed by Cura would be between $18 million and $25 million. This story has been updated since initial publication to correct those figures.
WILLMAR — While not widely known at the time, the nonprofit senior care provider Cura has been operating in Willmar since last year.
Cura took over operation of the CentraCare — Willmar Care Center and Therapy Suites under an arrangement with CentraCare, which for several years has leased the city-owned Rice Memorial Hospital and other Rice assets also owned by the city of Willmar.
Headquartered in Paynesville, Cura is a nonprofit organization started in 2022 by Tom Opatz and Fred Struzyk. Both men have spent their lives in hospital administration and between them are responsible for many health care facilities across central and southern Minnesota alongside their company Premier Health Care Management. When Struzyk decided that he was nearing retirement, the two wanted a way to maintain their legacy without selling the facilities they ran to a for-profit organization.
“Part of our goal was to not sell to a for-profit entity as Fred nears retirement but to have a legacy of care,” President and CEO Tom Opatz said in an interview this week with the West Central Tribune. "So we formed and got approved for a nonprofit. As we move forward, these purchases from CentraCare will go into Cura and our assets of these other locations will go into Cura. So everything will be in Cura."
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The Willmar City Council earlier this month authorized city staff and the city attorney to take the necessary steps for the transfer of the real estate of the skilled nursing and rehabilitation facility, located at 1801 Willmar Ave. S.W., to Cura. At that meeting it was explained that CentraCare has decided not to continue operating long-term care facilities.
Cura has been operating the care center since Oct. 30, 2023. While the process of conveying the care center property to Cura is pending, Cura is also seeking to purchase adjacent parkland property to construct additional senior housing.
According to Opatz, Willmar is in need of affordable senior housing and the construction of this housing project would bring an additional 100 to 120 units to Willmar. Opatz expects it would cost between $18 million and $25 million for construction.
The Willmar City Council in February approved a $150,000 purchase agreement with Cura for 5.54 acres of parkland between the care center location and Bill Taunton Stadium. Further city action is required before a sale could be completed.
“What makes the land desirable is that it is adjacent to the care center. That makes it affordable. What Willmar lacks is affordable living for seniors,” Opatz said.
Cura has followed the structure of having a care center with adjacent senior living in many locations such as its facilities in Benson, Monticello, Melrose and Sauk Centre.
“Two years ago we purchased the care center in Paynesville. We just completed the brand-new living unit in Paynesville. Our model is one of care,” Opatz said.
While city planning and economic development officials have spoken favorably about the senior housing proposal at the location, Municipal Utilities staff have raised concern about the potential impact on the city's southwest well field in that same area.
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Members of the city's Planning Commission also raised concerns about whether the city should be giving up parkland, and whether stormwater management needs can be adequately addressed.
At a Planning Commission meeting earlier this week, Opatz stated that without that land, Cura would be going somewhere else for their senior living and care facility.
“We are going to do senior housing, so if it can’t be done in Willmar, then it may be a question of the care center then would be rebuilt somewhere else. Because there is no property here that is affordable,” Opatz said at a Willmar Planning Commision meeting.
When asked to clarify in a later interview, Opatz said that if the parkland location is not available, Cura would not provide senior housing in Willmar but the care center would remain unaffected.
The Planning Commission vote to approve the land sale ultimately failed on a 3-3 tie. The Willmar City Council can overturn that action with at least five affirmative votes. The council is expected to take up the issue again at its April 15 meeting, when a public hearing is scheduled for the ordinance authorizing the land sale.
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