Hospital to lease neighboring 4.6 acres

The Hospital Board emerged from a private session Wednesday night with an agreement to lease property adjacent to the facility that Chair Bill Boerum said will solve parking challenges associated with the upcoming hospital upgrade.
The 4.6-acre parcel stands to the southwest of the hospital, bordered by MacArthur Street, Hayes and Fourth Street West. Part of the land is already used for hospital parking, which will continue. The additional space will be used for construction-related staging and storage once the rebuild gets underway.
The four-year deal with owner Clem Carinalli calls for annual payments of $175,000. “It’s an appropriate amount,” said Boerum. “It’s a fair price.”
The tentative contract includes, at $100,000 per year, an option to buy the property for $4.2 million. In 2007, when the property was associated with Prop F, which failed, the asking price was $6.9.
“It gives us a lower purchase price,” Boerum said. “That was a key factor.”
Board Member Peter Hohorst said the current parking lot holds up to 40 cars. Access to the larger parcel will ultimately allow a considerable increase he said.
The negotiations were held via conference call. Boerum said a formal letter of intent will be sent this afternoon.
In 2007, during the debate over a new hospital, the same parcel was considered the “in-town” site. At the time, Boerum said “Getting that land as soon as possible … is essential to the hospital’s future.” When Prop F failed, the option was dropped.
Past plans aside it is likely the land will be, in the long-term, primarily used for parking. The upgrade and design plans do not assume the need for additional land, and dedicated parking space minimums – to accommodate an enlarged staff – are mandated by law.
Carinalli, meanwhile, is having big financial troubles. Sonoma County’s largest individual real estate investor has stopped paying some of his lenders. The most recent example is a failure to repay the Sonoma State University Academic Foundation, which will take possession of a Carinalli property near Windsor in lieu of a $1.25 million loan.