California investors won a $250 million bidding war to take over ailing Long Island College Hospital and operate a new medical facility, officials said Thursday.
Winning investors, under the banner Brooklyn Health Partners, plan facilities including 300 to 400 beds and surrounding medical offices.
They also want to build 1,000 residential units, with 30 percent set aside for affordable housing in the Cobble Hill section of Brooklyn.
The winners were selected from nine finalists. BHP was named the winner at a SUNY board of trustees meeting on Thursday.
The million-square-foot deal would be one of the largest property transactions in the borough’s history.
“Selecting a new operator of the LICH site will allow SUNY to return to its core academic mission while continuing to serve Brooklyn’s health care,” said SUNY Chairman H. Carl McCall.
Thursday’s announcement likely settles one of Brooklyn’s most contentious political-and-business battles.
SUNY Downstate owners have been trying to close LICH, which loses about $13 million a money and has about a half-billion dollars in liabilities.
But labor unions, community groups and then-mayoral candidate Bill de Blasio pushed hard to keep doors open at the Cobble Hill hospital. De Blasio was even handcuff and arrested at save-LICH rally in July.
“SUNY will work with BHP to make the transition as smooth as possible, allowing the community to have the health care services they desire and SUNY to return to its important and ongoing mission to protect and preserve SUNY Downstate,” said SUNY Chancellor Nancy L. Zimpher.
The new hospital will employ about 2,000 people.
Union representing LICH workers said they were “cautiously optimistic” that the deal would finally secure long-term medical services for Cobble Hill and surrounding Brooklyn neighborhoods.
“Our coalition has fought tirelessly to preserve LICH as the full-service hospital that Brooklyn patients need — but our work is not done,” said RN Jill Furillo, executive director of the New York State Nurses Association.
“We must ensure that LICH patients have a seamless transfer of care, LICH does not close for any period of time, and that the Brooklyn Health Partners team treats LICH employees and their collective bargaining representatives with respect.”
Kevin Finnegan, director of politics and legislation for SEIU Local 1199 added: “[Local] 1199 caregivers are cautiously optimistic about this proposal for a full-service hospital, which the community and patients have been fighting for throughout the process of keeping LICH open.”
BHP’s $250 million bid won even though Peebles Corp promised $260 million and included partnerships with North Shore-LIJ, Maimonides Medical Center, ProHealth and the Institute for Family Health.
SUNY officials said the BHP proposal was superior, despite the lesser price tag, because it promised to keep hospitals doors open even during construction.
“The ability to provide medical services was one of the key considerations,” according to a SUNY statement.
“Brooklyn Health Partners has said it will run a `bridge facility’ that will include a minimum of 150 beds, an emergency department, ambulatory care, intensive care, surgery, acute care and supported medical services.”
A bid by Fortis Property Group and NYU Langone finished third, according to trustees.
Sources close to other bidders believe they still have a shot if BHP can’t tie up a host of loose ends.
The winning bidders haven’t shored up funding sources and could still run into zoning and development challenges because of their ambitious building plans, sources said.