TITLE
Recommendation to authorize City Manager, or designee, to execute the First Amendment to Amended and Restated Lease No. 35432, and necessary documents, with MWN Community Hospital, LLC (Tenant), for modifications to various provisions of such Lease; and
Adopt resolution finding that the Community Hospital and surrounding campus remains necessary for the City of Long Beach use as a general healthcare campus with related community-serving uses and authorizing the recordation of amended covenants so restricting use of the Subject Property. (District 3)
DISCUSSION
On October 19, 2019, the City Council authorized Amended and Restated Lease No. 35432 (Lease) with MWN Community Hospital, LLC (Tenant), for the operation of an acute care hospital and other health care services on City of Long Beach (City) owned property located at 1720 Termino Avenue, 1760 Termino Avenue, and 4111 E. Wilton Street (Subject Property) (Exhibit A to the Resolution). The use restriction is memorialized as a Deed Restriction recorded on the Subject Property. As part of the use restriction to operate the Subject Property as an acute care hospital, the Lease also requires the Tenant to pursue seismic-strengthening and building-code related improvements mandated by the State of California Assembly Bill 2190 (AB 2190).
Over the past two years, the Tenant worked with the City, State, and community organizations to reopen the hospital and secure approval for seismic construction plans prior to the January 1, 2022 deadline for groundbreaking as established by State law. Unfortunately, over this time, seismic construction costs increased by 50 percent over initial estimates and demand for acute care services failed to reach levels to sustain acute care hospital operations. On January 14, 2022, the California Department of Public Health (CDPH) confirmed in writing that the Tenant had surrendered its General Acute Care Hospital License effective December 31, 2021.
Notification of Termin...
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