TITLE
Recommendation to adopt categorical exemption CE-23-134 and find the amendments to Amended and Restated Lease No. 35432 and restrictive covenants on the Property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 East Wilton Street and the transfer of the property to MWN Community Hospital, LLC are categorically exempt from the California Environmental Quality Act. (District 3)
DISCUSSION
The City has been ordered to comply with its obligations under the California Environmental Quality Act (CEQA) concerning actions taken by the City Council in relation to the Community Hospital property located at 1720 Termino Avenue, 1760 Termino Avenue, and 411 E. Wilton Street (the ”Subject Property”).
Background:
Since the 2018 closure of Community Hospital of Long Beach, the City Council has taken numerous actions in relation to the Subject Property including the following:
• On June 19, 2018, the City Council authorized an Exclusive Negotiating Agreement with Molina, Wu Network, LLC for the lease and potential development of the Subject Property as an acute care facility;
• 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 (“MWN”), 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 MWN 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 MWN 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
MWN; (b) amendment of existing deed restrictions to allow a for-profit hospital and (c) reimbursement to MWN up to $1M per year on an annual basis for the first five years of the term, and up to $2M per year on an annual basis for years 6-15, to assist with seismic retro...
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