Beach Cities Health revenue plans

Beach Reporter - 2/22/20

Beach Cities Health District (BCHD) tells the public that by 2022 they will be financially in the red and need a new plan to generate revenue. Due to its track record as a lucrative investment vehicle, an assisted living facility was chosen as the solution to increase revenue.

As many of us know, past performance is no guarantee of future results. Are they gambling with our public land and property tax money?

Recent realities challenge the notion that dependence upon an assisted living facility as a consistent money maker is a risky assumption. For example:

1. Assisted living occupancy rates are currently at the lowest levels ever recorded, impacting potential income. (National Investment Center for Seniors Housing & Care)

2. Due to low interest rates, the number of new senior living facilities has increased, creating an over supply of facilities. (Senior Housing News)

3. The current model of big box facilities are not the product that Baby Boomers, the target consumer, are looking for. Like big box stores, their time has come and gone. (Senior Housing News, Welltower REIT)

4. And, that Silver Tsunami? Many Boomer retirees are cashing out and moving to low tax states such as Arizona, Idaho, Texas and Washington. (Curbed - blog)

What if the promised revenue never materializes and the investment loses money? Will the assets be sold to a private investment company or REIT? Will we be faced with decades of empty buildings as litigation drags on? BCHD must rethink its “need” for additional revenue and abandon this RISKY investment strategy.

—Sheila Lamb, Redondo Beach

Unhealthy speculation

Dear ER:

Beach Cities Health District has told the public that by 2022 they will be financially in the red and need a new plan to generate revenue. An assisted living facility has been decided upon as the solution to provide the needed revenue. Are they gambling with our public land and property taxes. Recent realities challenge the notion that dependence upon an assisted living facility as a consistent money maker is a risky assumption.  For example: BCHD’s proposition to enhance their organization’s revenues is a highly risky endeavor that has important consequences for Redondo. What if the promised revenue never materializes? Will the assets be sold to a private investment company or REIT? Will we be faced with decades of empty buildings? The proposed senior housing project is not in the best interests of Redondo Beach residents.

Sheila W. Lamb

Redondo Beach

Service in place

Dear ER:

If the goal of the Beach Cities Health District is to help Redondo Beach seniors “age in place,” then a 95-foot high concrete wall is not the answer. But the answer just might be more in-home services. I lived at Seasons Senior Apartments for seven years. Though most seniors at Seasons appreciate the BCHD help, they believe more help with substance abuse, shopping, cleaning, post-surgery issues and maybe even an on-call nurse would go much further towards keeping them “in their homes,” rather than building expensive housing that none of them can afford to live in.

Ross Yosnow