Mar Ventures and Continental Development Corporation tabbed to pursue Ground Lease Partnership with BCHD
Local developer to work with Health District on project to redevelop campus; revenues will support community health programs
Last night (Nov. 19), the Beach Cities Health District Board of Directors named Mar Ventures and Continental Development Corporation as its preferred development team for its upcoming redevelopment of the former South Bay Hospital site. The Board authorized BCHD CEO Tom Bakaly and staff to prepare a Letter of Intent to initiate discussions to pursue a ground lease agreement and report back at the Board’s January 28 meeting with an update on discussions.
El Segundo-based Mar Ventures/Continental was one of three final proposals reviewed by the Board, following initial review by a BCHD consultant and Advisory Working Group comprised of community members, a board member, and BCHD staff.
BCHD plans to utilize a ground lease model, keeping the land publicly owned while partnering with a developer to bring new health-related services to its campus at 514 N. Prospect Ave. in Redondo Beach. This proven approach has successfully generated revenue for BCHD programs and services for 54 years, creating sustainable funding to support health and wellness programs and ensuring the campus continues to serve the community for years to come.
The Mar Ventures/Continental Proposal includes:
- Alignment with BCHD’s continuum of care model, including the integration of wellness, Residential Care Facilities for the Elderly (RCFE), and medical services within a community-oriented design.
- A financially viable structure, with the potential for a long-term ground lease and future joint venture opportunities for more revenue sharing to support BCHD programs and services.
- Responsiveness to community feedback related to building height, density, open space, and accessibility, while presenting a cohesive campus vision that connects new development with existing BCHD facilities and programs to enhance overall community benefit and accessibility.
- A local team consisting of Mar Ventures, Continental Development, Gensler, Torrance Memorial, and Silverado, bringing an established community presence and regional experience to the project.
Project Notes:
Here are some preliminary details residents should know about the redevelopment proposal submitted by Mar Ventures/Continental for the former South Bay Hospital site:
- 217 Residential Care for the Elderly (RCFE) units – including a mix of Skilled Nursing, Memory Care, Assisted Living, and Independent Living
- Medical Office Space – For doctors’ offices and medical services
- Building height of 60 feet – significantly lower than the 103 feet in the Certified EIR; BCHD’s tallest existing building is 76 feet
- Community Benefits – a host of amenities and programs, including a community garden, walking and exercise paths, an outdoor theater, an art gallery, and an outdoor community space for public events, such as farmers markets and outdoor yoga
- Ground lease revenue – will directly support BCHD programs and services. Mar Ventures/Continental’s proposal will generate $9 million for BCHD in the first 10 years of the agreement.
allcove Beach Cities’ New Location Moving Forward
In other BCHD Campus news from the November Study Session meeting, the allcove Beach Cities permanent location will move forward with plans to build a scaled-down, value-engineered facility at the southwest corner of Beryl Street and Flagler Lane, adjacent to the main BCHD Campus. The Board of Directors is reviewing methods to bridge a roughly $4 million gap in funding, utilizing debt, loans or charitable donations to complete the project.
BCHD Board Issues Request for Expressions of Interest (RFEOI) for Former South Bay Hospital Redevelopment
Effort Seeks to Find New, Innovative Uses for the Site on the BCHD Campus
As Beach Cities Health District (BCHD) continues advancing its Healthy Living Campus vision, the BCHD Board of Directors has announced that it will release a Request for Expressions of Interest (RFEOI) for potential partners to redevelop the former South Bay Hospital Site. At its June 25 meeting, the Board held a public study session regarding the upcoming RFEOI – the first step in soliciting new ideas from potential partners about how to redevelop the site and what kinds of health services could be offered where the former hospital building now stands. That building is slated to be vacated in 2027.
The District’s overarching goal is to find a partner and a plan that aligns with BCHD’s mission and vision to meet the community’s ongoing health and wellness needs. Any redevelopment plan must also create sustainable revenue to support BCHD services, address the seismic safety of the aging former hospital building, and take into account community feedback.
“Over the years, we’ve gathered valuable input from our community, and that feedback will help shape the District’s evaluation of the RFEOI responses,” said BHCD CEO Tom Bakaly. “The document includes guidelines addressing building height, density, and placement to ensure that any future development aligns with community and neighborhood expectations. Our aim is to balance community concerns with innovative possibilities that enhance local access to health-related services.”
Bakaly added that the public feedback the District has received since 2017 includes:
- Integrate the campus with the surrounding community
- Include broad community benefits
- Focus on intergenerational programming and needs
- Create useable open space for the community
- Keep building heights and density as low as possible
- Lessen impacts to the surrounding neighborhood
Potential future uses could include Residential Care for the Elderly (RCFE), affordable senior housing, or medical office and wellness services – all options that align with the scope of services BCHD is authorized to provide under California Healthcare District law.
The complete RFEOI document can be found starting June 30 at www.bchd.org/rfq
“Through this RFEOI process, we hope to spark fresh, forward-thinking proposals that meet local health needs and complement the character of our community,” Bakaly said. “There will be many opportunities for public engagement during the process, and we look forward to working together to address the former Hospital building and shape the future of the Healthy Living Campus and the overall well-being of the Beach Cities.”
The RFEOI will be issued June 30, with responses due by August 7. During the selection process, a BCHD committee will evaluate the submissions, including community engagement opportunities for public input. The committee will then deliver their recommendation(s) to the Board for approval and to determine next steps.
About Beach Cities Health District
Beach Cities Health District (BCHD), named the 2021 “Healthcare District of the Year” by the Association of California Healthcare Districts, is focused on preventive health and serves the communities of Hermosa Beach, Manhattan Beach and Redondo Beach, California. Established in 1955 as a public agency, it offers an extensive range of dynamic health and wellness programs, with innovative services and facilities to promote health and prevent diseases across the lifespan. BCHD also operates allcove Beach Cities, a youth mental health center for ages 12-25, AdventurePlex, a health and fitness facility where kids play their way to good health, and the Center for Health & Fitness, a comprehensive fitness center that is one of just two Medical Fitness Association-certified facilities in California. Visit www.bchd.org or call (310) 374-3426 for more information.
