From the onset of the discussions surrounding the Henry Mayo expansion proposal there have been many individuals, including myself, that suspected that this project was primarily targeted at maximizing medical office space and profit.  This would give Henry Mayo management and G&L Reality the economic advantage of being able to build at a higher density than previously allowed.  If we as a community expect to attract additional hospital services in the Santa Clarita Valley we need to provide them an equal opportunity.  

Henry Mayo spokesman Roger Seaver has continually denied this allegation and has consistently stated that the amount of office space being planned was sized to support hospital expansion.  So, it has been interesting to watch the number of offices building shrink as Mr. Seaver and his team has tried to nail down an agreement.  It does not seem to matter that Henry Mayo hospital property is surrounded by a residential area, that McBean will, most likely, not be able to handle the added traffic or that this plan may have a profound negative effect on local homeowners.  

But finally at the September 25 Santa Clarita City Council Meeting the truth came out.  In the mist of a heated discussion relating to building the expansion under the guise of a Conditional Use Permit vs. Development Agreement Mr Seaver removed all drought. Mr. Seaver stated that Henry Mayo is currently holding $150 million dollars of red ink and plans to borrow $350 million dollars to cover debt and expand the hospital.  He went on to state that the construction of three office building would be required in order to obtain the necessary loans.  It appears that having a Development Agreement that pre-approves expanded office buildings increases the value of the property and increases the probability that financing for improvements can be obtained. Councilmember Ferry expressed no surprise and cited that that was precisely the method used in the sale of the Bermite property and indicated that it is an appropriate method used to enable development.

So the cat is out of the bag.  Bailing out Henry Mayo once again is in my opinion short sighted and will impede the development of additional hospital facilities in our valley.  When you realize that the Henry Mayo G&L Reality plan is, at best, targeted to serve only 50% of our valley and provides no guarantee that any Hospital construction will take place, I believe you will understand the importance of supporting a long term solution which provides a level playing field.  In the best interest of the whole Santa Clarita Valley the City Council should reject the Henry Mayo proposal and require any expansion to stay within current density and height guidelines.  This will provide a greater incentive for other provides to establish hospital facilities on both sides of the Santa Clarita Valley.

 

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