TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a Lease Agreement with MWN Community Hospital, a California limited liability company, for the operation and potential development of City-owned property, located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 East Wilton Street, including the provision of an acute care hospital, for a period of 45 years, with the option of two 10-year extensions;
Amend the grant deed restriction to allow a for-profit health care organization to operate an acute care hospital, and allow for non-acute care health services upon the occurrence of certain conditions at the Subject Property; and
Authorize City Manager to reimburse Tenant up to $1,000,000 per year on an annual basis for the first five years, and up to $2,000,000 per year on an annual basis for years 6 through 15 of the Lease, to assist with seismic retrofit construction costs of the hospital facility.
(District 4)
DISCUSSION
On March 22, 2011, the City Council authorized the execution of Lease No. 32175 with Long Beach Memorial Medical Center (MemorialCare) for the use of the City-owned property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 E. Wilton Street (Subject Property) for the operation of an acute care hospital and other health care services. The Subject Property includes approximately 8.7 acres of land with multiple facilities and medical office buildings.
On March 5, 2018, MemorialCare formally notified the City of its decision to terminate its lease agreement for the Subject Property effective July 3, 2018. Shortly after, the City Council directed the City Manager to conduct a targeted process to identify potential operators with the demonstrated ability to operate a general acute care facility, including an emergency department with basic support services, at the Subject Property. The City received five non-binding proposals from potential operators and received further dire...
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