Contract for new hospital approved

0 Comments | Oakland Tribune, Oct 19, 2005 | by Christine Morente, STAFF WRITER

BURLINGAME -- With a $125,000 check on the table, Peninsula Health Care District Chair Don Newman signed six hefty copies of a master agreement that will bind the district and Mills-Peninsula Health Services together for 50 years and build the new Peninsula Medical Center.

The company's CEO, Robert Merwin, penned his signature next to Newman's on Monday afternoon at the hospital.

A hearty handshake between the two ensued, and a round of applause followed from the small audience of company and district officials.

"That was fun," Newman said as he slipped thecheck -- representing a month's rent -- into his coat pocket. "It's a great relief. Now I can relax."

Under the contract, Mills-Peninsula -- a Sutter Health affiliate - - will pay the district $1.5 million a year in rent.

It took about five years of negotiations between the two entities and heated debate with district residents before the district board could approve the land-lease contract in August.

Now, signs of the $450 million project are apparent, with the leveling of the old blood bank at 1791 El Camino Real and the medical office building on 1515 Trousdale Drive where an 809-car garage is going up.

Soon, the hospital's design will go to the Office of Statewide Health Planning and Development (OSHPD) for review. Later, the district's residents will vote on the contract.

"We're thrilled that the process has come to a successful completion," Merwin said. "We can go on and build for the future."

The hospital will meet the state's seismic standards. It must be completed by 2013.

Staff writer Christine Morente covers Burlingame, Millbrae, San Bruno and Hillsborough. She can be reached at (650) 348-4333 or at cmorente@sanmateocountytimes.com.