BCHDs allcove - a $6.3M Grant with a $172M Cost

BCHD applied for a $6.3M grant for an allcove building. Allcove is currently housed in an ocean-view, purpose-remodeled suite on 4th floor of 514 N Prospect.

In order to get the $6.3M, BCHD had to agree to the two key terms:

• Operate the new allcove building for a MINIMUM of 30 Years

• Provide allcove services to the Priority Populations of LA County SPA8 for a MINIMUM of 30 Years

BCHD's acceptance of the terms expanded the service area for allcove from 120,000 population of the District Cities to the 1.4M population of SPA8. The District is 9% of SPA8 on a population basis. On a Priority Population basis, the District Cities are likely no more than 2% of the allcove service area's target population.

BCHD conducted NO FINANCIAL ANALYSIS of the 30-year liability of operation for 1.4M population SPA8. Based on credible estimation, that 30-year liability is $172M in return for a $6.3M grant.

https://www.stopbchd.com/post/details-of-the-170m-bchd-district-taxpayer-liability-for-allcove-all-caused-by-bchd-accepted-a

The document below highlights the key terms of the BCHD allcove grant deal for $6.3M.

Since the District is only 9% of SPA8, yet bears 100% of the 30-year cost, it's unclear why BCHD would foist such a negative NPV deal onto Taxpayers of the District only. There is no long term funding.