BCHD Autopsy of a BAD BAD Deal for Taxpayers

BCHD is renting 30,000 sqft of the brand new, expensive facility for $1.57M a year and only charging $1.5M a year to the private developer for the land lease.

BCHD is renting PACE (95% non-resident use) space for $850,000/YR

BCHD is renting "allcove" (91% non-resident use) space for $430,000/YR

BCHD is renting office space for its staff (6000sqft) for $300,000/YR

BCHD HAS BEEN TELLING THE PUBLIC IT WILL NET $2.2 - $3.3M/YR AFTER EXPENSES FOR THE USE OF DISTRICT RESIDENTS - THAT SEEMS COMPLETELY IMPOSSIBLE NOW THAT BCHD WILL BE PAYING THE PRIVATE DEVELOPER FOR THE RCFE "DEAL"

BCHD POOR NEGOTIATION PLACES 100% OF THE RISK OF PROJECT FAILURE ON THE PACE OPERATION FOR 95% NON-RESIDENTS

FROM BCHD PACKAGE FOR 6-16-20

FROM BCHD BOARD PACKAGE FOR 9-28-22

Private Developer/Owner/Operator Pays BCHD $1,500,000/YR for the 95 YR Lease to 3 Acres of Redondo Beach Public Owned & Zoned Land

BCHD Makes the LAND LEASE for the Developer FREE By Renting more than $1.5M a year in space back from them each year. BCHD rentals are for facilities for 91 to 95% NON-RESIDENT USE ("allcove" and PACE). BCHD will send the developer a check for $70K a year.