MINNEAPOLIMEDIA NEWS | Troubled Crystal Nursing Home Emptied and Set for Permanent Closure

CRYSTAL, MN (September 29, 2026). The last resident has been moved from The Terrace at Crystal, leaving the 85-bed nursing home empty and preparing the facility for permanent closure after state intervention uncovered extensive health, safety and financial problems.

The Minnesota Department of Health assumed temporary control of the facility in July after determining that its owner’s financial difficulties could place residents in jeopardy. The nursing home, located at 3245 Vera Cruz Avenue North and also known as Centennial Gardens for Nursing and Rehabilitation, had 58 residents when the state intervened.

Pathway Health Services, the management company hired to operate the home during the state receivership, reported finding rodents, mold, standing water, urine-stained mattresses and other hazardous conditions. The facility also lacked working water fountains and adequate refrigeration, forcing operators to bring in bottled water and ice.

The nursing home had remained on a federal special-focus watchlist for more than two years because of repeated health and safety violations. The Centers for Medicare and Medicaid Services ultimately moved to terminate its federal certification and funding.

Federal payments supported approximately three-fourths of the home’s residents. The state negotiated a temporary continuation of those payments through September 25 while officials searched for appropriate placements, including for residents with complicated medical needs.

The closure removes additional skilled-nursing capacity from Minnesota at a time when the state’s elder-care system is already under pressure. Minnesota has lost more than 30 percent of its licensed nursing-home beds during the past two decades, even as the aging population is expected to increase demand for long-term care.

The home’s owner, George Katz, was reportedly one week behind on payroll when the state assumed control. Katz was also associated with The Terrace at Cannon Falls, which permanently closed in 2023 following flooding, structural damage and repeated care violations.

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