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Business & Tech

Hospital Lease to include Option on South Lot for Parking

While moving to create replacement parking, SVH puts money down on new purchase price.

In an effort to address community concern about the , the Sonoma Valley Health Care District SVHCD Board of Directors announced on Thursday the successful renegotiation of a new, extended lease agreement on the parcel of land known as the “South Lot.”

The land between Hayes and Fourth Streets, south of , is held in lease through . The purpose of the renegotiated lease is to create replacement parking space for the 44 spaces that will be lost to the building expansion due to begin in the spring of 2012 and completed in 2013.

The new agreement extends the current four-year lease (of which two remain) to 10 years, giving SVH an additional eight years of parking security on that lot.

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The new agreement also reduces the annual cost and will save $16 thousand a year in payments. During the construction period (through mid-2013), the lease payments will be made from the .

The agreement contains an option to purchase the property for $2.5 million, a price negotiated down from $4.4 million in the current lease option. If the SVHCD decides to exercise the option in the next five years, there’s a “bonus” of $250,000, or 10 percent. The cost of the option is $250,000, which would be applied against the price of the property, along with a portion of the lease payments, if the property is purchased.

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SVHCD representatives emphasized that should the property be considered for purchase at any future time, the permanent use of the land will be subject to hearings in which the stakeholders will have ample opportunity to weigh in with both the and the SVHCD Board.

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