SVH extends lease on Carinalli property
The Sonoma Valley Health Care District board of directors, at their regular meeting on Thursday, announced the successful renegotiation of a new, extended lease agreement on the parcel of land between Hayes Street and Fourth Street West, south of the hospital, known as the "South lot" or Carinalli property.
The purpose of the lease is to create replacement parking space for the 44 spaces that will be lost to the building expansion set to begin in the spring of 2012, to be completed in 2013.
The new agreement, with North Valley Bank, extends the current four-year lease - of which two remain - to 10 years, giving Sonoma Valley Hospital an additional eight years of parking security on that lot. The new agreement also reduces the annual cost and will save $16,000 a year in payments.
During the construction period (through mid-2013), the lease payments will be made from the general obligation bond funds.
The agreement contains an option to purchase the property for a price negotiated down from $4.4 million (in the current lease option) to $2.5 million in the new agreement, with a bonus of $250,000 if the board decides to exercise the option in the next five years. 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 gets purchased.
District 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 City and the district board.