Providence Health issues RFP for Bethany Redevelopment Project

July 11, 2002

CONACT: Marlena Rennie
Dynamis Advisors, Inc. (216-595-3999)


FOR IMMEDIATE RELEASE:
Over the past year, Providence Health (“Providence”) has actively sought community partners to transform the former Bethany Medical Center into a community care hub for medical, mental health and social services. As the next phase of this process, Providence Health is accepting Requests for Proposals (“RFP”s) from organizations interested in the purchase or donation of the entire project or portions of Bethany Plaza Campus, at 12th and Central Avenue, Kansas City, Kan.

"Across the country, health systems face the challenge of what to do with urban core healthcare facilities which no longer function as hospitals," said Scott Keller, president, Dynamis Advisors, a national firm based in Cleveland Ohio, with expertise in this field. "Providence Health has been exemplary in its efforts to transform the Bethany campus and significant progress has been made over the last 12 months. Providence Health is now looking for the final piece to put the project over the top. Taking this project forward requires partners who can assume the development and landlord role."

The Bethany Plaza Campus is the 14-acre site of the eight buildings (comprising ~450,000 sq. ft.) of the former Bethany Medical Center, which ceased operations as an acute care hospital in July 2001. Since that time, Providence Health has secured new tenants and worked aggressively to solidify arrangements with major partners to lease 30,000 or more square feet as anchor tenants.

“The project has attracted tremendous interest,” said James T. Paquette, Providence Health CEO. "We have leased space to new tenants and have discussions pending with several more. We also continue to meet with potential partners as we issue the RFP."

"The fact remains that Providence Health is not in the business of being a developer or a landlord. Our primary mission is healthcare services. For this reason, we have reached a very important juncture where Providence Health needs one or more partners committed to take this redevelopment project forward. We know from other redevelopment projects that finding those partners is the key factor in determining long-term success.”

For several months, a partnership to establish an assisted living facility at Bethany Plaza appeared to be the largest prospective anchor tenant. That initiative was withdrawn due to budget constraints.

Pete Zevenbergen, executive director of Wyandot Center for Community Behavioral Healthcare, has expressed interest in the Bethany Redevelopment Initiative as a community revitalization effort. Representatives from his Board of Directors and staff toured a similar project in Detroit where a former hospital was revitalized into a multi-purpose campus. "We are seriously considering space at Bethany Plaza and becoming a partner in the redevelopment initiative," Zevenbergen said.

The Bethany Redevelopment Initiative has received federal support from an $800,000 grant from the Health Resources and Services Administration (HRSA). Additional federal funds are being sought this year to make the buildings more efficient for other than hospital use. In recent years, Providence Health invested in capital improvements to the campus including a new security system, new telephone system and other renovations.

In addition to the physicians and other healthcare services already based at Bethany Plaza, several new tenants have relocated to the campus during the past year:

  • The Dream Works;
  • John Henderson, M.D., psychiatrist;
  • The Kansas City, Kansas Branch of the NAACP;
  • The Shepherd’s Center of Kansas City, Kansas;
  • Turner House Clinic; and
  • The University of Kansas Medical Center/Region VII Quality Improvement Center for Disabilities.
  • To receive information about the RFP, interested organizations should contact Marlena Rennie, Dynamis Advisors at 216-595-3999 or mrennie@dynamis-hc.com . There is a $150.00 RFP application fee. RFPs will be due by Aug. 30, 2002 with a decision on partners to be made in October 2002.

    FACT SHEET

    Contact Persons

    For questions regarding the RFP, please contact:

    Dynamis Healthcare Advisors, Inc.
    30100 Chagrin Boulevard, Ste. 203
    Cleveland, Ohio 44124
    Tel: (216) 595-3999
    Fax: (216) 464-7119
    Scott Keller, President skeller@dynamis.hc.com

    Due Dates / Process: The process will be broken down into two phases. Respondents will be required to submit written proposals by August 30, 2002. Providence Health will select the finalists by September 15, 2002, who then will be asked to make more formal presentations during the last two weeks of September. Providence Health intends to make its final selection by October 1, 2002.

    Confidentiality: Due to the sensitivity of the selection process, Respondents are asked not to share information or discuss their plans with third parties, other than their own advisors and/or joint venture partners.

    Authorized Recipients: The RFP will only be transmitted to authorized principals of the Respondent.

    Discussions with Potential Users: Respondents should not contact potential users directly. If Respondents need information about potential users and their respective interests, Respondents should contact Providence Health’s consultant, Dynamis.

    Joint Venture Partners: Respondents, if submitting joint venture proposals, must fully describe the legal entity, percentages of ownership and control, and their respective roles, as well as any history of working together.

    At any time during this process, at Providence Health’s discretion, Providence Health may suggest to two or more Respondents or potential Respondents that they should consider a joint venture approach to the RFP.

    Transfer Agreement: The property will be transferred all or in part on an "as is", "where is" and “with all faults” basis. Respondents are encouraged to perform necessary due diligence prior to the submission of their proposals.

    Once Providence Health selects a finalist(s), the finalist(s) will be required to deposit refundable monies with Providence Health. These funds will be returned at closing. If the finalist defaults or fails to close, the deposit will be retained by Providence Health as liquidated damages.

    Restrictions: Providence Health desires to place several restrictions on the use of the property. These restrictions are designed to ensure the property is utilized for the benefit of the community and remains an important asset for the neighborhood.

    Buildings Description (Approximate square footage for buildings)
    Building/Gross Sq. Ft.
    Medical Office Building (MOB)/53,380
    South Building/266,050
    Center Building/39,444
    Brotherson Building/76,141
    Purchasing Building/12,688
    Hastings Hall/26,829
    West Wing/47,905
    North Building/11,768

    Total Space: 501,206 sq. ft.

    Central Plant: 10,165

    Transition: After Providence Health has made the final selection, Providence Health’s advisor, Dynamis, is available to consult (at new owner’s cost) with the new owner on the continuation of the reuse project, if so desired.

    Site Visits: Bethany Plaza representatives will provide access to its properties and related equipment during scheduled site tours. Respondents are encouraged to send representatives experienced in facilities maintenance to these tours. For a tour, please contact: Fred Troutman (913) 281-8975

    Available Documents: Respondents desiring to view or copy information may do so, at Respondents’ expense and according to the terms of the Confidentiality Agreement, by contacting: Fred Troutman (913) 281-8975

  • Site Surveys
  • Floor Plans and Site Plans
  • Statement of Conditions
  • Environmental Report
  • Insurance Carrier’s Report
  • Leases with Confirmed Tenants