Touro hopes to end lease, buy land at Mare Island

Touro hopes to end lease, buy land at Mare Island
By Jessica A. York/Times-Herald staff writer
Posted: 04/05/2009

Touro University's two-year bid to upgrade from being a Mare Island renter to property owner may be on the immediate horizon, a school official said Friday.

The college of osteopathic medicine's campus, on nearly 44 acres, has rested on leased land for nearly 10 years. For two of those Touro officials and property owner Lennar Mare Island have been negotiating the land's sale, said Michael Harter, Touro Western Division senior provost and CEO.

The original lease agreement indicated that university officials would have a purchase option, according to a city Planning Department staff report.

On Monday, the Planning Commission is set to consider a request to make the 43.9 acres available for sale to Touro.

Harter said the sale could be complete as early as April 30. Though he could not provide the exact cost of the land, because the university has been paying toward the purchase, he said the remaining balance is more than $3 million.

Land ownership will serve multiple purposes, Harter said. Money invested in remodeling buildings will be protected investments and federal grant administrators favor property owners over renters, he said.

"By buying the land and buildings, we are demonstrating to students, parents and the community that we are here to stay," Harter added.

About eight buildings on the land, such as the former Lincoln Hospital, have not been developed, Harter said. By buying the land and about 23 buildings with it, the school will benefit from eventual university expansion.

"We believe that we have so much unused space there, our plan is that as we develop new programs, we will utilize the space," Harter said.

The 191,000 square feet of property is generally bordered by Railroad Avenue, Nereus Street and Club Drive on the southern part of the island.

Lennar Mare Island, part of a 21-company partnership in the midst of voluntary Chapter 11 federal bankruptcy proceedings, will need bankruptcy court approval before completing the sale, company spokesman Jason Keadjian said.

Contact staff writer Jessica A. York at (707) 553-6834 or jyork@thnewsnet.com.