Sonoma Valley hospital board delays South Lot sale

Uncertainty over fate of parcel tax may affect bids, worry district officials|

Worried about the effect of a June 6 hospital bond election on Sonoma Valley Health Care District’s options for their South Lot property, the district’s board of directors met in a special session on Wednesday, March 22, and voted to delay the date when proposals to develop or purchase the lot are due.

When Measure B – the 5-year renewal and $55-increase of the current hospital parcel tax – failed to gain the two-thirds majority necessary for passage, the current tax of $195 per lot was put on the clock for expiration at the end of June. With little time for delay, the board decided to put essentially the same measure – calling for an increased $250 parcel tax – on the June ballot.

“There’s obviously concern on everybody’s part as to what might happen if the bond measure doesn’t pass, because as we know the hospital is completely dependent on that revenue stream,” said board chair Jane Hirsch.

In early February, the district had issued a Request for Proposals (RFP) on the sale or development of the South Lot, a 2.9-acre property the district owns not far from the hospital. That RFP called for an April 15 deadline for proposals.

With the defeat of the bond measure, however, board members became concerned that uncertainty about the district’s revenue might affect the number of bids received, and the amount of the bids themselves.

“Given the unfortunate results of the election, there was concern that some of us would be occupied making sure this election goes as smoothly as possible,” said Hirsch. “And we were concerned that perhaps the uncertainty of the election might cause some developers to either not submit, or perhaps to submit something different than they had intended.”

The recommendation to change the date of acceptance for the proposals was offered this week by district board member Peter Hohorst.

In Wednesdays’ special session – a “call-in” session, as most of the board members were not available to attend in person on short notice – the board voted to delay the RFP deadline to June 15.

“Unfortunately, the Board will not be in a position to make a reasoned decision on the future use of the South Lot until after the Measure E election on June 6, 2017, as the future of the Hospital itself will be uncertain until the results of the election are known,” reads the recommendation as proposed by Hohorst.

The process of reviewing the proposals will remain the same, though delayed by two months: a review by the board, a chance for the developers to present their proposals, and public comment prior to a vote.

The due date was changed to a full two months later than the original deadline.

Only Sharon Nevins and Hohorst were attending in person, with Hirsch, Josh Rymer and Bill Boerum calling in.

During the special meeting, the district’s Chief Financial Officer, Ken Jenson, told the board that he had only heard from a couple developers indicating they would be submitting proposals.

The board hopes that a delay to the weeks following the June election should make clearer the options open to the district.

“We would not then be making any review or discussion or decision until after we find out the results of the election,” said Hirsch. “So we’ll know for sure what we’re dealing with.”

Email Christian at christian.kallen@sonomanews.com.

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