TITLE
Recommendation to authorize City Manager, or designee, to execute all documents necessary for a short-term lease (Interim Lease) with MWN Community Hospital, LLC (MWN), a California limited liability corporation (Lessee), for the lease of property owned by the City of Long Beach (City) at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 East Wilton Street (Subject Property); and
Authorize City Manager, or designee, to execute 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, for approval by the City Council once completed. (District 4)
DISCUSSION
On June 19, 2018, the City Council authorized an Exclusive Negotiation Agreement with the Lessee to negotiate the terms and provisions of a ground lease for the operation of an acute care hospital (Hospital) at the Subject Property. Recently, the City and Lessee reached an agreement regarding the major terms and provisions for reopening the Hospital. City staff recommends entering into the Interim Lease so the Lessee may immediately begin preparing the facility for inspections that are required to reopen a Hospital at the Subject Property, while both parties finalize the terms and provisions of a long-term replacement lease. Completion of the replacement lease is expected to take up to 60 days. Staff expects to bring the replacement lease to the City Council for approval no later than May 17, 2019.
Per the terms and provisions of the Interim Lease, the Lessee shall be responsible for all day-to-day maintenance of the Subject Property (Leased Premises) upon execution thereof. Should successful negotiation or approval of a replacement lease not occur, the City will reimburse the Lessee for start-up and operating costs expended during the term of the Interim Lease and reasonably documented by the Lessee, up to an amount not to exceed $1,000,000.
The Interim Lease includes the following m...
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