Local News in Brief : Hospital Sale Approved
A federal bankruptcy judge has awarded the right to buy Lake View Medical Center to Phoenix House, which plans to operate a drug rehabilitation center there bearing First Lady Nancy Reagan’s name.
Phoenix House offered $7.7 million for the Lake View Terrace property, but the offer is contingent on getting a conditional-use permit from the city to operate the Nancy Reagan Center.
Although Phoenix House still must arrange financing for the center, David Gould, an attorney representing the court-appointed trustee for the property, recommended that its offer be accepted. Gould said it appears that Phoenix House, a nonprofit drug services agency, can come up with the money.
Phoenix House plans a 150-bed adolescent treatment unit, a 60-bed unit for young adults and space for training and research.
Judge Kathleen T. Lax’s ruling drew immediate criticism from neighbors of the medical center, who fear that Phoenix House will turn it into a magnet for crime and drugs. Two residents’ groups vowed to campaign against the project when its permit request comes before the Los Angeles Planning Commission.
Doctors Service Group, a rival bidder proposing a traditional hospital that was favored by residents, lost pleas for more time to finance its $7.5-million cash bid.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
