DALEVILLE -- A Memphis, Tenn.-based company will take over operations of The Glebe in Botetourt County as part of a strategic plan to correct the facility's multi-million dollar financial troubles.

CRSA will take over marketing, financial and daily operations of all four of the Virginia retirement communities operated by Virginia Baptist Homes, including The Glebe. CRSA, a 20-year-old company, manages 21 retirement communities in 12 states and has "experience in turnaround situations," said Randall Robinson, VBH's president.

The struggling economy and the downturn in the real estate market have been cited by VBH as obstacles to senior citizens being able to afford to move to The Glebe.

The continuing care retirement facility opened in 2005 and has failed to attract enough residents to pay its six-figure entrance fees and pricey rents to make it a profitable venture. While The Glebe has been able to cover its operating expenses, it defaulted in July on a bond payment to investors and faced the threat of foreclosure. Overall, The Glebe has to repay $55 million in tax-exempt bonds that it sold through the Roanoke County Economic Development Authority -- financing that was used to build the facility.

Because of the default, the Virginia State Corporation Commission has stepped in. It's the state agency that granted Virginia Baptist Homes a license to operate a health care facility at The Glebe. To protect new residents who move to The Glebe from the potential of losing their life savings, the SCC has ordered The Glebe not to accept any more entrance fees until its finances improve.

"The Board of Trustees of The Glebe has concluded that we will have the best opportunity for success at The Glebe with a new team of high-level managers with experience in turnaround situations," said Robinson, who added that he will remain chief executive officer of VBH and will continue to be involved in decisions affecting the facilities.

The Glebe has about 200 residents and 170 employees. Its occupancy rate has hovered around 70 percent since it opened three years ago. In general, retirement communities must have occupancy rates closer to 90 percent to be profitable, Robinson said.

CRSA will take over operations next month. It will also manage VBH's other three retirement communities in Richmond, Newport News and Culpeper, Robinson said.

Those facilities have been successful, but some have also been slow recently to fill empty beds.

"If we just did it for The Glebe it would be very expensive," Robinson said of hiring CRSA. "If we do it for the whole company ... it certainly spreads that expense across each of those" facilities. "We're using their people because they're better trained and more qualified to help us do what we need to do."

Wednesday's announcement was intended to reassure investors that VBH is working to turn around its financial performance. VBH and CRSA will work together on a strategic plan that will examine the facility's debts and create a new repayment plan.

"The outcome of that long-term plan is to look at the debt structure and create a new schedule of debt service," Robinson said.

The Glebe has other financial issues pending. It has been embroiled in a legal battle with Botetourt County, which challenged the facility's tax-exempt status as a religious and benevolent organization. The Virginia Supreme Court is expected to rule this month on whether it will uphold a lower court ruling that The Glebe pay the county about $500,000 in back taxes and penalties, as well as estimated future annual payments of about $227,000.

Robinson and CRSA officials said these are tough times for the retirement community industry.

"With today's real estate and credit market, we have found that quite a few of the newer retirement communities are experiencing difficulties reaching their occupancy projections," said Ben Decker, a CRSA executive who will become director of operations at The Glebe and oversee operations at the other VBH properties. Decker has been involved in 47 turnaround communities as part of a 28-year career in the retirement community industry, according to a news release from The Glebe.

"Some retirement communities planned a few years ago are at a competitive disadvantage. CRSA's experience with communities across the country equips us to respond to current trends and anticipate future demands in the marketplace," Decker said in the news release.

Robinson said CRSA will develop a range of financial and marketing issues affecting The Glebe and look for cost saving measures that can benefit all of the VBH communities. The changes, he said, should be seamless for residents.

Attempts to reach several residents at The Glebe on Wednesday were unsuccessful.