The District Board has worked extensively over the last six years to craft the best possible terms to build the new hospital on District land with no new taxes.

After years of study and public input, the District Board and MPHS came to an agreement on the terms to restructure their relationship. In order to solicit public input on these new terms, the District Board held over 100 public meetings to review the draft agreement terms, including six special meetings held throughout the District last fall. The terms for the agreement has greatly benefited from the public’s response and the final terms have been modified based on the feedback received from the community and elected officials.

The District Board is proud of the final terms of the agreement which ensure:

• MPHS will build a new, privately funded, $488 million state-of-the-art modern medical campus that meets seismic safety standards at the El Camino Real/Trousdale site

• MPHS will pay the District $1.5 million annually in rent (adjusted using COLA) for the 50-year term of the lease

• The community will have a state-of-the-art medical facility that will include new, modern medical equipment and technology in order to improve the quality of health care for our community

• The District will have more oversight over the new hospital operations than it does under the current lease agreement, including oversight of any proposal to terminate core services such as obstetrics and surgery, ensuring that vital services are offered within the District, not somewhere else

• MPHS will transfer back to the District six properties including:1730 Marco Polo Way, 1515 Trousdale Drive (land only), 1811 Trousdale, 1791 El Camino Real and 1848-50 El Camino Real, settling a long-standing legal dispute regarding the 1985 merger

• The District will also receive $6 million from MPHS for the District’s 50 percent interest of the medical office building at 1720 El Camino Real

• Transfer the hospital back to the District at the end of the 50-year lease, subject to book value reimbursement (the depreciated value at the termination of the lease.)

This is a fair deal that builds a new public hospital with private funding, and at no taxpayer expense, and also yields vital revenue to the District.  These rental payments will augment the District's revenues to accumulate a reserve fund to ensure the hospital’s future, and additional monies to continue funding community programs that improve the health of District residents through our Community Grants program.

The first monthly rent payment to the District by MPHS was received at the time of groundbreaking on the new parking lot in October of 2005.