Phoenix House, the nonprofit organization planning the Nancy Reagan Center for drug rehabilitation, Thursday received an extension through Dec. 31 on an option to buy the bankrupt Lake View Medical Center.
A federal bankruptcy court granted the eight-month extension after a competing bidder, First Chance Productions, failed to convince the bankruptcy trustee that it could provide the money to back up its $8-million offer.
First Chance, an entertainment industry group, hoped to place a recording studio, television studio and performing institute on the 14-acre property.
In the face of community opposition, Phoenix House received a zoning permit earlier this month to convert the former hospital into a 210-bed live-in treatment program. Opponents have vowed to appeal that decision to the Board of Zoning Appeals and the City Council.