Long Beach, CA
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File #: 22-1164    Version: 1 Name: ED - Community Hospital D3
Type: Contract Status: CCIS
File created: 9/14/2022 In control: City Council
On agenda: 10/4/2022 Final action: 10/4/2022
Title: Recommendation to declare the City of Long Beach owned Property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 Wilton Street as surplus; Authorize City Manager, or designee, to execute any and all necessary documents, including a Purchase and Sale Agreement with MWN Community Hospital, LLC, a California limited liability company, for the transfer of the Subject Property in accordance with certain provisions of Lease No. 35432; and Accept the Categorical Exemption CE-22-149. (District 3)
Sponsors: Economic Development, Financial Management
Attachments: 1. 100422-R-44sr&att.REVISED.pdf, 2. 100422-R-44 PowerPoint.pdf
TITLE
Recommendation to declare the City of Long Beach owned Property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 Wilton Street as surplus;

Authorize City Manager, or designee, to execute any and all necessary documents, including a Purchase and Sale Agreement with MWN Community Hospital, LLC, a California limited liability company, for the transfer of the Subject Property in accordance with certain provisions of Lease No. 35432; and

Accept the Categorical Exemption CE-22-149. (District 3)

DISCUSSION
Since the 2018 closure of Community Hospital of Long Beach, the City Council has pursued diligent efforts towards the re-opening and operation of an acute care hospital and other health services on City of Long Beach (City)-owned property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 E. Wilton Street (collectively “Subject Property”) (Attachment A) including the following actions:

· On June 19, 2018, the City Council authorized an Exclusive Negotiating Agreement with Molina, Wu, Network, LLC (Tenant’s predecessor) for the lease and potential development of the Subject Property;


· On March 12, 2019, the City Council authorized (a) a short-term lease (Interim Lease) with MWN Community Hospital, LLC, a California limited liability company (Tenant), for the interim lease of the Subject Property and (b) a Letter of Intent related to the development of a long-term replacement lease between the City and the Tenant for the operation of an acute care facility at the Subject Property;

· On October 15, 2019, the City Council authorized (a) a Lease between the City and the Tenant for the Subject Property for the provision of an acute care hospital for a period of 45 years, with the option of two 10-year extensions by Tenant; (B) amendment to existing deed restrictions to allow a for-profit hospital and (c) reimbursement to the Tenant up to $1M per year on an annual basis for the first five years, and up to $2M per year on an annual basi...

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