St. Ann's assisted-living facility gifted $1 million 'lifeline'

DULUTH — St. Ann’s Residence recently received a $1 million donation from Bullyan RV founder Joe Bullyan — in addition to $500,000 he gave the assisted-living facility during the pandemic.

The nonprofit organization has struggled to return to pre-pandemic occupancy levels and keep up with the rising costs of inflation, according to Scott Johnson, St. Ann’s executive director of eight years.

Brielle Bredsten / Duluth Media Group

The organization began serving seniors in the community in 1890 from a western Duluth training hospital. In 1963, St. Ann’s moved to its current location, 330 E. Third St., near downtown.

The facility has the capacity to serve up to 167 residents. From 2014-2019, occupancy was typically 84%-90%, or 140-150 residents, Johnson said. However, it has hovered at 90-100 residents since the pandemic.

Eleven St. Ann’s residents died of COVID-19 during the pandemic's peak.

“You had people that were fearful of community living as well,” Johnson said.

However, external factors played an even larger role in the reduced occupancy levels that were seen throughout many of Minnesota’s senior living facilities, Johnson said.

With hospitals statewide ceasing elective procedures during the progression of COVID, fewer patients underwent hip and knee replacements at that time. As a result, there were fewer seniors checking into rehab facilities and fewer transitioning into long-term assisted care settings like St. Ann's.

In April 2020, St. Ann’s was awarded $483,400 in Paycheck Protection Program funding to retain 74 jobs, according to the U.S. Small Business Administration.

The assisted living facility was also one of the beneficiaries of a COVID relief fund pooled together by five area nonprofits. Those funds aided in the cost of increased hazard pay to help retain essential staff and to hire more nurses and health experts at St. Ann’s.

Clint Austin / File / Duluth Media Group

“For the nonprofit community, those are huge during the time that that happened,” Johnson said. “I don't know how any of us would have made it without those pieces not being there.”

The disruptions to the facility’s organic means of gaining residents were met with “grossly inflated” operational costs toward the tail-end of the pandemic, Johnson said.

St. Ann's raised its rates 2%-3%, but utilities and food costs have increased at least 30%, he said.

According to its website, rates range from nearly $2,000 for a studio unit to over $3,000 for a two-bedroom apartment, and include three meals a day, utilities and weekly housekeeping for those 62 years and older.

“It is very affordable and they have round-the-clock care,” Johnson said. “We’re actually one of the few that have 24-hour human beings at our front desk.”

Clint Austin / File / Duluth Media Group

Many St. Ann's residents receive government assistance and are already impoverished, Johnson said.

The facility receives funding for daily operations through the federal elderly waiver program, which is administered by the state for its qualifying residents. Forty apartments also qualify for a state Housing and Urban Development program.

“Now the state has come back and they passed some legislation last year to increase the elderly waiver rate, which will help us,” Johnson said.

However, an immediate relief won’t be seen as the increased elderly waiver rate is not implemented until each individual is rescreened during their annual assessment.

“It’s a slow grind as to the effectiveness of that program,” Johnson said.

Meanwhile, the facility needed immediate help with its overdue credit lines with vendors, he said. That’s where the Bullyan family provided a “lifeline” with their recent donations to keep the organization afloat.

In a March 19 letter to the Bullyans, St. Ann’s expressed its appreciation on behalf of its board and residents.

“You and your family have been remarkable partners, and your generosity allows us to keep our organization at the forefront of long-term care in Duluth and the surrounding area,” the letter said. “We deeply appreciate all that the entire Bullyan family has done to support numerous efforts throughout Duluth — having a lasting impact on so many.”

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St. Ann’s is run by a team of volunteer board members. Each is elected to a three-year term with the ability to serve two consecutive terms.

Joe Bullyan’s father, Marco Bullyan, previously resided at St. Ann’s.

“St. Ann’s is a much needed facility,” Joe Bullyan said. “They got a beautiful operation there and Scott is doing a good job, but they don't get enough money from the state and county to maintain them.”

Board Emeritus Harry Podgorski had initially inquired with Joe Bullyan to request the large financial gifts. They served together as Skyline Rotary members and shared a background in local real estate and development.

“Joe had actually some very specific criteria with his donation,” Johnson said. “He wanted to help make sure that we could stabilize and move forward.”

Although Joe Bullyan and his wife, Nancy Bullyan, have long-retired, their business is very much family oriented, Johnson said. The RV and motorhome businesses they started around 1954 are now operated by their son (also named Joe), and two grandsons, (another) Joe and Joshua.

At 95 years old, Joe Bullyan, of Tower, spends the winters in Florida but remains well-connected within the Hermantown community and its surrounding areas.

His support can be seen in projects such as the Lutheran Social Service Bethany youth shelter and family resource center in the Morgan Park neighborhood and its new building, the donation of the building which houses UDAC, as well as with the Duluth Heritage Sports Center Foundation.