Beach Cities Health District pledges to demolish hospital by 2027

Beach Cities Health District is facing a crucial decision regarding its future, with a potential bond on the table, budget cuts already in effect, and a looming expenditure to demolish its old hospital building. The district has been grappling with shrinking lease revenue from the outdated 1960 building, leading to a significant budget reduction and a partial hiring freeze.

A public-private deal with developer PMB to build an assisted living facility and tear down the old hospital has been put on hold, prompting CEO Tom Bakaly to explore alternative options, including the possibility of a bond. The projected $30 million bond would cover the cost of demolishing the old hospital, which is necessary due to seismic concerns.

If the bond is approved, the district plans to downsize the Healthy Living Campus and reduce the number of units in the new building. However, if the district has to cover the demolition costs itself, it would result in further budget cuts and reduced services.

The decision on whether to move forward with the bond will be made by the health district board in July, coinciding with a potential change in state law that could lower the voting threshold for bond approval. The district’s funding sources include property taxes, leases, interest, grants, and proceeds from various facilities.

The community has been engaged in discussions about the potential bond, with a recent meeting held at Hermosa Beach city hall. Despite efforts to reach out to stakeholders for comment, responses were not obtained. The future of Beach Cities Health District hangs in the balance as it navigates these critical financial decisions.