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BCHD Board Selects Partners, OKs Contract for
Campus Revitalization
Wednesday night, the Beach Cities Health District (BCHD) Board of Directors approved the land lease agreement for WRC PMB Redondo Beach, the joint venture between PMB and Watermark for developing and operating the Health District's proposed Healthy Living Campus.
The Board voted 3-0 to approve the 3-acre land lease with the developer, operator and design/build team for the proposed Healthy Living Campus. The agreement is for a 65-year term, with two potential 15-year extensions.
PMB, which has developed more than 100 health care projects, and Watermark, the ninth largest senior living operator in the U.S., will be the developer and operator, respectively, for the Residential Care for the Elderly (RCFE) facility on the BCHD campus. The design-build team includes Callison RTKL, a multinational design-build architecture firm that’s worked on more than 100 projects in and around Los Angeles; and Suffolk Construction, with 39 years of general contracting experience across the U.S., including the design of more than 800 senior living units in California.
Materials from last night's Board meeting are available at bchd.org/board-directors-meetings.
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How BCHD Lease Arrangements Benefit the Community
Beach Cities Health District has a long history of partnering and/or facilitating leases for health services. In addition to lease arrangements for 510 and 520 Prospect Avenue, BCHD also manages successful lease agreements with Sunrise Assisted Living, Silverado Memory Care, Beach Cities Surgery Center, UCLA Health and South Bay Family Health Care - a federally qualified health center.
These public/private partnerships, like what will be in place with PMB and Watermark, provide revenue that helps fund the dozens of BCHD preventive health programs and services at no additional cost to residents/taxpayers. With the proposed Healthy Living Campus, these programs and services will continue for decades to come via a proven, sustainable financial model that provides more stable cash flow, with low risk for BCHD or taxpayers.
Revenues generated by the Healthy Living Campus will be reinvested in the community through services like substance use prevention, health grants, mental health services, school gardens, senior care management, paramedic services and more.
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HISTORY OF LAND LEASES
A proven funding model BCHD has implemented with the 510 and 520 N. Prospect buildings.
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LAND OWNERSHIP
BCHD will retain ownership of the 11-acre campus.
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LEASE TERMS
Initial 65-years with two 15-year extensions.
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CAMPUS REDEVELOPMENT
WRC PMB will be responsible for demolition of the 514 building, development of the open space, surface parking and new building for RCFE, PACE and BCHD's programs and services (allcove Beach Cities, Community Services).
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NEW GREEN & SEISMICALLY-COMPLIANT BUILDING
The new building will be modern, environmentally friendly, meeting LEED and WELL standards; as well as a seismically-compliant building in accordance with the Redondo Beach General Plan.
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SERVING THE COMMUNITY
The new revenue stream will enable BCHD to sustain its current level of programs and services for the community for generations to come.
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LEASE AGREEMENTS
$1.5 million per year with a 10% escalation every 5 years.
BCHD will lease back space in the new building from Tenant at the following rates per year*:
- Community Services: $295,327
- allcove Beach Cities: $428,574 (grant funded)
- PACE: $847,797 (subleased to PACE partner)
*Rates are subject to change; assumes District & PACE partnership pays for Tenant improvements.
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Project Changes Based on Community Feedback
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After more than 60 meetings, open houses and study sessions drawing more than 1,000 comments since 2017, plans for the campus have undergone significant changes based on feedback from residents and expert financial, seismic and architectural consultants. | |
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Fewer Units & Smaller Building Area
Residential Care for the Elderly units dropped from 420 to 217 and new on-campus building area dropped 18%.
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Less Construction Time
Active construction time is shortened from nine years to five years in two phases instead of three.
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Acres of Open Space
There will be approximately two soccer fields of open, green space to replace acres of asphalt.
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BCHD’s Healthy Living Campus Next Steps
The next step in the process is submitting a Conditional Use Permit (CUP) application to the City of Redondo Beach. The “pre-application” was submitted in February, 2022 and can be viewed online at bchdcampus.org.
WRC PMB Redondo Beach, the joint venture serving as developer and operator for the Healthy Living Campus project, are now involved with the BCHD Team to submit the formal CUP application to the City, expected in early 2023.
What is a Conditional Use Permit (CUP)?
Conditional use permits (CUPs) are uses permitted on a permanent basis within a district as long as the governing body’s conditions are met. Permitted conditional use permits are expressly listed for each district in the zoning ordinance.
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Coming Soon: allcove Beach Cities
In October, the allcove Beach Cities center will open at BCHD’s campus in Redondo Beach. Created to serve young people ages 12 – 25, it is part of an innovative network of integrated youth mental health centers designed with, by and for youth that reduce stigma, embrace mental wellness, increase community connection and provide access to services.
Led by a team of eight Youth Advisory Group members, and supported by Stanford University’s Center for Youth Mental Health & Wellbeing and a team of local experts, allcove Beach Cities will provide unique peer-to-peer collaboration and guidance in areas ranging from substance abuse and educational support to mental and physical wellness services.
By taking a regional approach, BCHD was able to apply and receive a $2 million grant from the State of California, bringing needed professional mental health resources to youth in the Beach Cities and South Bay. Congress has also provided another $1 million for allcove Beach Cities, thanks to the efforts of Representative Ted Lieu and his team.
Learn more at www.bchd.org/allcoveBeachCities
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