Q& A About the Healthy Living Campus
Q: What comes next for BCHD after Measure BC was defeated?
A: Following the election, our team is exploring alternatives to replace revenue and reduce expenses as the old South Bay Hospital building is decommissioned in early 2027. This building has funded community health programs like social workers for older and disabled adults, LiveWell Kids and the Center for Health & Fitness. We continue to work on the Healthy Living Campus, launching a fundraising campaign for allcove Beach Cities, and proceeding with the due diligence period for the Residential Care for the Elderly and relocation of the Center for Health & Fitness. Unfortunately, we cannot fund the open space at this time.
Q: How does BCHD plan to address the old South Bay Hospital building?
A: Safety is BCHD’s primary concern, and since the cost of retrofitting the former hospital building is not financially feasible, the District plans to demolish the building in 2027. In 2018, Youssef & Associates concluded that demolition of the 514 N. Prospect Avenue building is prudent due to its vulnerability and poor performance of similar buildings in past earthquakes. While not required, seismic updates are recommended. The Redondo Beach General Plan suggests such buildings be "upgraded, relocated, or phased out." Additionally, in February 2023, Los Angeles County supervisors initiated steps toward mandatory retrofitting of older concrete buildings. The building also faces escalating maintenance costs diminishing revenue used to fund programs and services.
Q: How is BCHD funded?
A: BCHD has a diverse funding structure, maximizing your tax contribution and allowing the District to provide residents with a wide range of community health and wellness programs. FY23-24 Incoming Funding:
• 33% ($5m) – Property Taxes
• 27% ($4.1m) – Property Leases
• 15% ($2.4m) – Grants, Interest
• 14% (2.1m) – AdventurePlex/Center for Health & Fitness user fees
• 11 % ($1.7m) – Limited Partnerships
BCHD has maintained a balanced or surplus budget for the last decade. The only exceptions were during the pandemic, and those shortfalls were later reimbursed by FEMA. We are projecting a revenue shortfall two years from now when the old South Bay Hospital building is decommissioned and will address that shortfall through alternative revenue sources and expenditure reductions.
The District’s annual audits routinely report no issues and for the last five years, BCHD has received the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association of the U.S. and Canada (GFOA).
Q: Why is Floor Area Ratio important to the Healthy Living Campus?
A: Floor Area Ratio (FAR) is the ratio of a building's total floor area to the size of the piece of land upon which it is built. It is often used as one of the regulations in city planning.
The City of Redondo Beach is considering implementing a maximum Floor Area Ratio in its General Plan on BCHD’s campus at 514 N. Prospect Avenue in Redondo Beach.
The change specifically sets a 0.75 FAR on BCHD’s campus while allowing a 1.25 FAR for other public or institutional land use designations. The proposed 0.75 FAR equals less than Phase I of the District’s Healthy Living Campus Plan, which would significantly limit the ability to modernize our campus and would compromise the ability to provide preventive health programs and services to the community.
Members of the public can review and submit comments on elements of the the Focused General Plan Update until March 31, 2024 at https://redondo.konveio.com/focused-general-plan-update
Q: Has BCHD released a construction schedule for the Healthy Living Campus?
A: No. A draft version of a construction schedule was made public by the City of Redondo Beach in response to a Public Records Act request. In February 2023, prior to its release, BCHD issued the following statement: “Any comments or information provided based on this schedule being made public is speculative.” As predicted, our opponent is taking this information as if it were finalized, when in fact it was a draft and subject to change.
The schedule was provided to the City as a courtesy for use by consultants hired to review documents related to the project. The cover note from our consultant, Nick Biro of Blue Mountain Development, speaks for itself: “this draft schedule… includes items that have not been fully worked out.”
Q: Are seismic repairs required?
A: As of now, seismic updates are not required, but are a prudent move given the performance of non-ductile concrete buildings in recent earthquakes. A seismic report of the building can be found here: Nabih Youssef Seismic Evaluation
The Redondo Beach General Plan suggests non-ductile concrete frame buildings, such as 514 Prospect, should ultimately be "upgraded, relocated or phased out."
Related to this, on February 28, 2023, Los Angeles County supervisors took the first step toward approving mandatory earthquake retrofitting on certain older concrete buildings that include a defect discovered in the 1971 Sylmar earthquake that can lead to a catastrophic collapse. The measure targets "non-ductile" concrete buildings owned by the county and those located in unincorporated areas and calls upon officials to prepare new rules for such a mandate. The city of Los Angeles approved a similar retrofit requirement in 2015.
Q: What changes have been made in response to concerns from neighbors and the community about the project?
A: BCHD has made the following changes in response to public concerns and input from experts:
• The construction period was shortened from 15 year in 3 phases to six years in 2 phases;
• The number of units was reduced from 420 to 217;
• Underground parking was eliminated, partly due to concerns about the number of truck trips that would be necessary to remove soil for the excavation;
• The RCFE building was relocated from the eastern edge of the campus (overlooking Torrance) to the northern edge, where it backs up against the Vons shopping center;
• Open green space has been made a priority after study circle meetings with the community in 2018.
BCHD has offered to meet with leaders of the “community group” that is opposing the project ( “Beach Cities Health District’s Tom Bakaly calls for Healthy Living Campus detractors to meet”), but they refuse to have a conversation with us.
Q: Will BCHD be a tenant at the Healthy Living Campus, paying rent for space?
A: BCHD has successfully managed land lease deals with the 510 and 520 Prospect Ave. Buildings to help provide revenue for the free programs and services we provide to residents. For the 514 building, the details are still being worked out and paying for space is a likely scenario. It’s important to note that BCHD will receive rent from its (to be announced) PACE partner, effectively reimbursing BCHD for use of the space.
Q: What is BCHD’s overall budget?
A: In FY21-22, BCHD had a $13.9 million budget and received $4.3 million in property taxes. Other incoming funding incudes is a mix of leases (42%), limited partnerships (9%), user fees from AdventurePlex and Center for Health & Fitness (2%) and investments and other revenues (13%).
During the 2021-22 fiscal year, BCHD spent 61% of its budget ($8.5 million) on programs, services and grants. Administrative costs, including salaries, made up 18% of BCHD's expenses.
As part of District policy, BCHD provides a compensation program that is competitive, legally compliant, and equitable. The pay structures conform with California minimum wage standards and the pay grade assignments maintain internal equity for hourly, non-exempt, exempt, and management jobs. A compensation consultant reviews the compensation structure and ensures alignment with the organization structure, job content, market trends, and other developments. Currently, most BCHD salaries are at or below the market for comparable positions.
BCHD’s staff positions are established by considering similar job classifications and qualifications standards to assure that the job would be assigned to a pay grade that was competitive and aligned appropriately using the District's major internal job evaluation factors.
Myth vs Fact
With Beach Cities Health District’s Healthy Living Campus in the Conditional Use phase, we’re here to help separate myths from the facts.
FICTION/CLAIM |
FACT |
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The Healthy Living Campus project will be “a privately owned residential facility for the elderly.” | FACT. False. The plan is a public-private partnership (P3) – a finance model that utilizes private investments in public projects to bolster taxpayers’ return on investment. The result: Taxpayers pay less for the programs and services they are receiving, while also benefitting from the improvement on the community asset. In this case, the project would include a youth wellness center focused on mental health, facilities for dozens of vital community health programs, more than two acres of green space, and senior living facilities. | ||||
BCHD spends 50% of property taxes on executive pay ($2M+ annual). |
FACT: Regarding salaries, this claim distorts BCHD’s budget numbers and misrepresents the impact of employee salaries to the total budget. In FY 21-22, BCHD received $4.3 million in property taxes and spent $8.5 million, (61% of its $13.9 million budget) on programs, services and grants. Administrative costs, including salaries, made up 18% of BCHD’s expenses. BCHD policy calls for a compensation program that is competitive, legally compliant, and equitable. A consultant reviews the compensation structure and ensures alignment with the organization structure, job content, market trends, and other developments. Most BCHD salaries are currently at or below the market for comparable positions. |
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BCHD does not have the authority to create an assisted living facility. The building must remain a hospital. | FALSE. False. As outlined in Section 32121(j) of the California Health and Safety Code, healthcare districts are empowered under state law to establish, maintain and operate healthcare facilities, including retirement programs, services and facilities. Additionally, all elements of the Healthy Living Campus will comply with local zoning regulations. | ||||
The proposed Healthy Living Campus is as big as the Crypto.Com Arena (nee Staples Center) in Los Angeles. |
FACT. False. According to the Los Angeles Sports Council, the Crypto.com Area/Staples Center itself is 950,000 square feet, not including parking, and 150 feet high. The Healthy Living Campus – including the proposed parking structure – is estimated to be 792,520 square feet, according to Paul Murdoch Architects, with the tallest portion of the building being 83 feet. Using an “apples to apples” comparison (i.e., no parking), Crypto.Com Arena/Staples Center is double the size of the 473,020-square foot structure planned for the Healthy Living Campus.
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BCHD has ignored a petition from 1,200 surrounding residents |
FACT. False. The organizers of the petition effort sent the petition to BCHD on June 8, 2021, two days before the end of the comment period for the Draft Environmental Impact Report. By the time the petition was sent to BCHD, the design of the project had changed due to input from the public and expert consultants, making many of the concerns listed in the petition irrelevant or out-of-date. BCHD responded to the petition in the same way as other DEIR comments, via the Final EIR. Seventy percent (802) of the signatures are from outside the Beach Cities, including Torrance, Gardena, Rancho Palos Verdes, Lomita and others. |
Beach Cities Health District, one of the leading preventive health agencies in the nation, is working with the community to reimagine our aging, former hospital site to better reflect our mission and meet the current health needs of Hermosa Beach, Manhattan Beach and Redondo Beach residents. In pursuit of this vision, since May 2017 we’ve collected feedback from the community, consulted with experts and publicly vetted numerous designs and concepts for the 11-acre site with our board of directors.
This once-in-a-generation project is our community’s unique opportunity to chart the future of health in the Beach Cities by purposefully building a vibrant campus where people of all ages can engage in healthy behaviors, form meaningful connections and be well … for many years to come.