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Welcome to Smart Growth SCV—an organization of reasonable citizens united to promote managed growth in the Santa Clarita Valley. SCV's population is expected to climb to nearly 1/2 million in the next 20 years and public services must grow in kind. We understand this.

But looking at the G&L Realty/Henry Mayo Newhal Memorial Hospital Master Plan, questions arise as to how our master planned community will move forward. In an effort to meet a dire need for acute care (inpatient) beds, their entire proposal includes only one building with patient beds. Worse yet, their proposed contracts have failed to commit even to this -- not once, not twice, but FOUR times.

The developer has repeatedly refused to provide scale renderings that demonstrate accurate viewshed - residents paid for these. Tan buildings represent existing structures and magenta are new construction. Total build out is roughly 1.2 million sqft - about 1.5 Valencia Town Centers on less than half the lot size.

Only one new building will actually have inpatient beds - and there´s no commitment even to this! G&L Realty wants approvals for all three of their office buildings now. In return? No commitment to a single "Centers of Excellence" and just one vertical column of rebar for the hostpial foundation. With this, G&L gets all it wants.

 

Here are a few thoughts:

> Why has this developer --for three years-- repeatedly failed to include any commitment to build the proposed hospital patient tower?

> Why has this developer --for three years-- repeatedly failed to to put ANY of the proposed services in writing?

> In fact, an independent study found that the proposed hospital space has been cut back so severely that it is less than 50% of industry stadnards - that the hospital's economic viability may be impacted. Wasn't a top-notch hospital the goal of this project?!


So, what's the plan? Our Transitional Care Unit (TCU) closes and cuts off services for seniors, the entrance to our hospital is clogged with impossible traffic, a much-needed medical center for our east valley is delayed for years, and the local residential area becomes an industrial zone. There’s plenty of room for an expanded hospital and balanced care but it somewhere the priorities just don't make sense.

In a shady 2003 land deal, Henry Mayo’s executive board sold ten acres --1/3 of their gifted land-- to emerge from bankruptcy. Property and improvements providing nearly $300,000 in lease revenues were sold to a for-profit, Beverly Hills-based office developer called G&L Realty for pennies on the dollar.

G&L got nearly ten acres for $3.5 million; a parcel worth at least 5-10 times that amount. Why would our hospital sell income-producing property so far below market value?

The sweetheart land deal doesn't stop there. According to the hospital's CEO in an April 2007 interview, the Master Plan proposal hatched shortly thereafter allows G&L Realty to own ALL of the buildings on the campus, regardless of their location. So, is this a "community hospital expansion" or a G&L Realty office development? Our little hospital will now lease all of its needed spaces back from a developer. But this is for our good, right?

In a 15-year Development Agreement sought by the partners, G&L Realty attorneys drafted a Development Agreement contract—written by their attorneys— guaranteeing protections for their “Master Plan”. Here are a few highlights:

> Developer can build out medical office buildings immediately with no commitment to a single square foot of their highly-touted "Centers of Excellence" and never expanded inpatient tower. After four years, the best we have is one vertical column of rebar before they can build the final MOB.

> Developer may build nothing at all, allowing it to sell the entire parcel for a large profit with new rights on title.

> Regardless of impacts, no future city council or slow growth measure can change the terms of the agreement. The city is locked into this for 15 years where public review and input are removed from the process moving forward.

Way back in 2005, the hospital's environmental report for their original 1.75 million sqft. project "forgot" to include anything but the 55 beds that result from space reallocation. It surely appears that this expansion never really was about the hospital at all. To be sure, our planning commission rejected the Development Agreement contract in February 2007 because it failed to offer any community benefit, including an actual hospital expansion - and nothing has changed since then.

Making matters worse, the plan includes many impacts that are significant to both planning and medical care.

Among them:

1) ONE 5-story building consisting of 125,000 sqft. This will be as tall as the Valencia Hyatt—the tallest building in Valencia.

2) THREE medical office buildings from 3-5 stories tall will add 200,000 sqft of offices for a total of 300,000 sqft. This results in a TRIPLING of office space with less than a 50% increase in hospital space—to whose benefit?

3) THREE 3-5 level parking garages towering over homes and streets—24/7 car alarms, horns, and loitering will be the norm.

4) Eminent Domain has always been necessary to accomodate this massive project. Though they now try to bury this problem, it is still plain in the report: five homes must be removed or traffic will fail terribly at the main entrance.

This massive regional medical facility will be built in the middle of a Residential Low zone with only one road for access - why would we plan a city or medical care this way?

G&L Realty and Henry Mayo claim that they must have three office buildings in order to attract "top specialists"- all before a patient tower is built. But if experts already see a subpar hospital that may not be viable, why would top specialists be attracted to it?

Doctors need operating rooms and beds for their patients - our community wants this too! While seven O/Rs are currently needed to support current demand, the hospital will support only four - after adding 200,000 sqft of office space. What "top doctors" will be attracted to waiting in line?

As it stands, G&L Realty will get entitlements worth perhaps 20 times their purchase price with no obligation to ever build a hospital. No one is guaranteed to benefit from the scheme except G&L Realty - and maybe CEO Seaver whose compensaiton is tied to its approval.

This is NOT a NIMBY issue - this is a valley-wide health care problem.

 

Community Need vs. Corporate Greed.

The hospital claims that there is a shortage of beds—we agree. But becasue of office space prioritizing, the plan will add a meager 55 beds over the next decade. This is nearly 100 beds shy of half the community need. Even in the next 20 years, they refuse to commit to any more beds than this!

Does it make sense that this will be the regional medical center in 15 years when people can’t get here now? Why delay access for the majority of our valley and destroy a local community for such an inadequate facility? And why do they claim that they can't accurately predict bed demand? The need is now but they use this excuse to avoid commitment to an actual hospital expansion!

The Conclusion.

The community gets nothing in the short-term and the city is locked up with a restrictive contract for 15 years. Monopolized care will lock up acute care beds for decades. Promising nothing to our citizens and locking out qualified providers from building here is not in this community's best interest. Don't buy the hospital disguise. This is a wolf in sheep's clothing.

The City has an obligation to regulate growth and ensure adequate emergency services for our citizens. Reducing this project will create an opportunity for another medical facility to expand here - it is desperately needed.

We don’t want zero growth, we want responsible growth; we want Smart Growth.

If this community does not demand accountability, our developers will buy our leaders the path of least resistance. Our entire valley will suffer as a result.