TITLE
Recommendation to authorize City Manager to execute any and all documents necessary for the termination of Lease No. 27140 with Community Hospital of Long Beach, Inc., a California public benefit corporation, for City-owned property at 1720 Termino Avenue; and
Authorize City Manager to execute any and all documents necessary for a Lease with Long Beach Memorial Medical Center, a California non-profit public benefit corporation, for City-owned property at 1720 Termino Avenue for a term of 55 years at a rental rate of one dollar per year for the operation of a licensed health care facility. (District 4)
DISCUSSION
On January 23, 2001, the City Council authorized the execution of Lease No. 27140 with Community Hospital of Long Beach, Inc. (CHLB) for the use of City-owned property at 1720 Termino Avenue (Site) for the operation of an acute care non-profit hospital and other hospital health care services. The Site, composed of approximately 8.7 acres of land with facilities, offices and equipment, had been formerly operated by Catholic Healthcare West (CHW) as Long Beach Community Hospital. In 2000, ownership of the Site was conveyed to the City upon the closure of the hospital operations by CHW. Immediately thereafter, a concerted community effort led to the formation of CHLB and the subsequent lease of the Site for continued health care operations. Lease 27140 provides for an initial 20-year term with two 10-year options to further extend the term. The rent for the initial term is one dollar per year. The initial term will expire on January 31, 2020.
Recently, Memorial Care Health System, a California non-profit public benefit corporation and operator of Long Beach Memorial Medical Center (Memorial), executed an agreement with CHLB to provide specific consulting services. The parties also explored the transfer of the Lease so that the hospital could be retrofitted to meet state seismic regulations. Under present California law, CHLB will be requir...
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