BCHD's "Justification" for a 65-95 Year PRIVATE Lease is Flawed and Without Net Benefits

At its September 28. 2022 Board Meeting - BCHD plans to approve a multigenerational 65-95 year lease of our public owned and zoned land to a PRIVATE DEVELOPER/OWNER/OPERATOR of a COMMERCIAL, MARKET PRICE FACILITY.

The BCHD analysis is flawed and ignores the inconvenient fact that 80-95% of the project is for NON-RESIDENTS with NO BENEFIT to the District. Furthermore, 100% of the damages accrue to Redondo Beach - the City that is asked to permit this non-resident damaging project.

BCHD’s PROPOSED 80-95% NON-RESIDENT PROJECT DOES NOT BENEFIT THE CITIES AND TAXPAYERS THAT OWN AND FUND BCHD – THE 95 YEARS OF CONTINUED DAMAGES TO REDONDO BEACH OUTWEIGH ANY POSSIBLE BENEFITS UNDER THE RB MUNICIPAL CODE

Bakaly’s “staff” memo recommending the Wealthy Living Campus 65-95 year lease to a private DEVELOPER/OWNER/OPERATOR is riddled with errors and mistruths.

NON-RESIDENT PROJECT - BCHD IS BUILDING FOR 80% to 95% NON-TAXPAYERS/NON-RESIDENTS

As stated, MDS found that 80% of assisted living tenants will be non-residents. Per the BCHD “allcove” SP8 contract, “allcove” is 91% non-residents by service area. Based on the National PACE Association’s data, a full 95% of the PACE enrollees will be non-residents.

DANGEROUS FUEL STORAGE AND ELECTRICAL EQUIPMENT HIDDEN FROM PUBLIC

BCHD repeated hid its intention to put anywhere from 30-75,000 gallons of fuel oil in above ground tanks along Diamond, along with 16,000 to 4,000V transformers, and roughly two locomotive sized electric generators. BCHD repeatedly refused to disclose this hazardous setup in Public Records Act responses due to the undoubted fecal flurry that would come its way. So instead, BCHD hid.

BCHD IGNORED THE PUBLIC’S INPUT

PROJECT HEIGHT INCREASED

Since 2017, BCHD has ignored the surrounding public’s input, while increasing the height of the proposed campus from 60-feet (2019 EIR NOP) to 76-feet (BoD Approval June 2020) to 103-feet (2021 EIR DEIR).

PROJECT BUFFER REMOVED

Also in 2017, BCHD committed in a written presentation to the Community Working Group (CWG) to buffer the surrounding neighborhoods using surface parking and greenspace. Instead, at its first opportunity, BCHD proposed the “Great Wall of Redondo” built all along the site perimeter. Subsequently, BCHD raised the height, but kept the facilities on the perimeter. The 300,000 SQFT RCFE runs along the perimeter of the site from Prospect & Beryl to Beryl & Flagler toward Flagler & Towers. The 8-10 story parking ramp towers above the west Torrance, Diamond and Prospect neighborhood. The pavilion closes the area from the 510 to 520 privately developed/owned/operated commercial office buildings.

PROJECT SURFACE BUILDINGS SQFT INCREASED

BCHD removed 160,000 SQFT of underground parking from the 2019 to 2020 to 2021 plans, adding an 8-10 story parking ramp at Prospect & Diamond. Even after netting BCHDs reduction in assisted living units, BCHD increased the overall surface buildings in the plan.

NO SEISMIC RETROFIT OR DEMOLITION EVER REQUIRED

BCHD continually misrepresents the finding of Youssef Engineers that were presented to the CWG. Youssef clear stated in January 2018 that no seismic upgrade was required by any ordinance, that “best practice” allowed for 25 years continued use, and that any action was voluntary. The 514 building was built in the 1960s in two phases and represents a cohort in age of roughly 40% of the commercial stock in California. Clearly, BCHD misrepresents its own engineering reports. To be clear, when asked in CWG, Bakaly acknowledged there was no requirement for any seismic upgrade.

BCHD MADE NO ATTEMPT TO GAIN PUBLIC FUNDING – BOARD WANTED A COMMERCIAL PROJECT

From Day 1 of the CWG process in 2017, BCHD was clear that it was seeking a development opportunity, because BCHD believed the public would not approve the project nor a bond issue. Unfortunately, BCHD denied the public the opportunity to vote on facilities that would be COST-BASED, not FULLY FOR-PROFIT AT MARKET PRICES-BASED. BCHD instead ignored the public and many from the CWG and cut the public out of the process. So here we all sit, with a $12-15K/month full market rate facility in progress that will price most of Redondo Beach out of the market. Per BCHD’s MDS consultants, only 20% of the assisted living is for the three Beach Cities with the rest using our Public Owned and Zoned Land for non-residents who have not paid one-cent in property taxes or bond repayments.

PROJECT FAILS CONDITIONAL USE PERMITTING, PLANNING COMMISSION DESIGN REVIEW, AND RESIDENTIAL DESIGN GUIDELINES MUNICIPAL CODE REQUIREMENTS

100% OF BCHD RCFE DAMAGES FALL TO REDONDO BEACH (9% REDONDO BEACH TENANTS)

Redondo Beach is the permitting authority for the BCHD project. As such, it is unclear how Redondo Beach will weigh non-resident damages with regard to CUP, PCDR and Residential Design Guidelines to assess the massive damages to Torrance. Assume for the moment that Redondo Beach suffers 100% of the damages, neighborhood character damage, property value impacts, inconsistent architecture and quality-of-life damages. Redondo Beach residents receive on a pittance of the benefits. Even though Redondo Beach residents could be 9% of the assisted living tenants, there are no benefits since the facility is MARKET PRICED. As such, those residents could be at Kensington, Sunrise Hermosa, or any of the other facilities in Torrance or Manhattan Beach.

100% OF BCHD “allcove” DAMAGES FALL TO REDONDO BEACH (4% REDONDO BEACH USERS)

Similar to the RCFE, Redondo Beach residents receive no incremental benefits from the “allcove” program’s administration by BCHD. The contract for SP8 was going to be awarded, and it is entirely likely that Beach Cities could have received funding without the damage of 91% non-resident traffic and transport. Therefore, there are no incremental benefits to the residents of Redondo Beach.

100% OF BCHD PACE DAMAGES FALL TO REDONDO BEACH (2-3% REDONDO BEACH USERS)

PACE is only 2-3% Redondo Beach resident enrolled, however 100% of the travel and transport damages accrue to Redondo Beach residents. There is no mythical benefit-to-cost analysis that BCHD can provide that will demonstrate Redondo Beach residents will enjoy more PACE benefits than damages – when measured by CUP, PCDR and RDG standards.

BCHD’s 2 ACRES OF GREEN SPACE ARE A RED HERRING

BCHD has an adjoining lot corner with Dominguez Park, a 20+ acre facility. BCHD’s 2 acre planned addition is small and of inconsequential value. Furthermore, BCHD’s $2M investment banker indicates that 3 acres will be leased for 65-95 years, so the 2 acres will be under the control of the developer/owner/operator of the RCFE. BCHD has been requested – and BCHD refused – to place a conservation dedication on the 2 acres for the use of the public.

In short, little that BCHD claims is anything other than propaganda and misleading and must be discarded.

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