Pass: 6602 / 78.21% Yes votes ...... 1839 / 21.79% No votes

See Also: Index of all Propositions

Impartial Analysis from the City Attorney

Proposition F is an advisory measure being presented by the Coronado City Council seeking a determination of the community's support of a proposed transaction involving the purchase of the real property occupied by the Sharp Coronado Hospital (the "Hospital") by the Community Development Agency of the City of Coronado (the "Agency"). The proposed transaction involves a purchase of the property over a 15-year term, with the Agency acquiring a 1/15 interest in the property with each annual payment to the Coronado Hospital Foundation (the "Foundation"), the owner of the property.

The total amount of payments to be made by the Agency is approximately $20,100,000, based on a current value of $12,589,000, amortized over the 15-year period at 6.5% per annum, with equal annual payments to be made for each proportionate interest being acquired. The funding for the proposed acquisition would come from a loan by the City of Coronado (the "City"), to the Agency, from the City's general fund reserves.

At the end of the 15-year period, provided all of the payments are made, the Agency would lease the property back to the Foundation for one dollar ($1.00) a year; the Foundation would continue to lease the property to Sharp Coronado Hospital and Healthcare Center under its existing lease. The purchase payments would enable the Foundation to continue its philanthropic purpose to support operations of the Hospital.

Proposition F also seeks a determination of whether the Agency should amend its existing owner participation agreements with the Foundation by (a) increasing a forgivable loan of Agency funds to the Foundation from $10,000,000 to $17,000,000, for capital improvements, (b) reducing the Foundation's obligation to match the Agency's loan (through community contributions) from 100% (i.e., "dollar for dollar") to 50% (i.e., 'fifty cents for each Agency dollar"), and (c) eliminating the requirement that all matching funds from the Foundation are to be limited to the acquisition, construction, and installation of capital improvements at the Hospital. By eliminating the Foundation's matching contribution obligation toward capital improvements, all of the Foundation's financial resources could be devoted to supporting operations of the Hospital.

As an advisory measure neither the City nor the Agency is bound by the results of the vote. Should the measure fail, the City and the Agency can still proceed with the proposed transaction; conversely, should the measure be approved, the City and the Agency can choose not to proceed with the transaction.

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• Voters get say on buying hospital land - 9/25/08