Teaching hospital comes a step closer
One of the things we've been hearing about is one step closer to happening. :D
FAU nears lease for new teaching hospital
By Kimberly Miller
Palm Beach Post Staff Writer
Tuesday, June 13, 2006
Boca Raton Community Hospital would pay Florida Atlantic University $21.2 million over 10 years to lease land for a new teaching hospital on the school's main campus under a proposal released Monday.
The plan, which a committee of FAU trustees will discuss this week, outlines a payment schedule, gives the hospital the option of trying to buy the land after all lease payments are made and requires the hospital to work with FAU's new four-year medical program.
The full trustee board is scheduled to vote on the plan June 28. The proposal also is subject to the approval of the Florida Cabinet.
"This is a partnership that is important to the hospital, the university and the community," FAU President Frank Brogan said. "Certainly it's important to the state of Florida because it will be turning out more physicians."
If approved, the 550-bed hospital would be built on 38 acres of vacant land in the southeast portion of the Boca Raton campus along Glades Road. Construction could be complete by 2011, Brogan said.
The original agreement between the not-for-profit hospital and FAU was for the hospital to build on the school's land after finding a comparable piece of property somewhere else that could make up for the loss of space by FAU.
But when no land could be found that was acceptable to the school, the two sides instead decided on the lease, which was finalized Thursday.
The hospital's lease would be for 68 years, which is the remainder of the 99-year master lease that FAU has with the state. It could be renewed when FAU renews its master lease.
The sides agreed on $21.2 million after an appraisal that took into account the unique characteristics of the property, including that it is technically state property and is governed by the school's master plan instead of city zoning ordinances.
The property's estimated value is about $29 million but the school is willing to take less because of the benefit to FAU of having a teaching hospital on its campus, Brogan said.
FAU was given approval last year to partner with the University of Miami's medical school for a four-year program where students attend all classes at FAU. Previously, FAU students took their last two years of study at the University of Miami.
The hospital's rent would help pay for parking garages at FAU that would take up less space but would be more expensive to build. In March, school officials said it would cost about $27 million to build two parking garages.
"Clearly, the $21 million does not equal the actual valued amount of the property, but in this deal, there is a value to the university of having a teaching hospital on its campus, and a value of property to the hospital, so each of us enjoy benefits," Brogan said.
FAU - THE REAL SLEEPING GIANT