From Brooklyn Health Partners to Don Peebles

Top LICH pitch implodes, leaving luxury developer up next

The Brooklyn Paper
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The state has ended negotiations with the developer that won the right to redevelop Long Island College Hospital and is moving on to the runner-up, which plans to dismantle the medical center and build housing in its place.

The State University of New York told Brooklyn Health Partners on Monday that it is unable to “execute a satisfactory contract agreement” with the medical developer. The spurned bidder says it gave the university everything it wanted and even put down a $25 million, non-refundable down payment. A spokeswoman for Brooklyn Health Partners said it is considering suing to get back in the bargaining seat and that her bosses have no idea what they did wrong.

“What unanswered questions has BHP not delivered?” said Brooklyn Health Partners spokeswoman Donnette Dunbar. “The community stakeholders have adamantly stated they want a full-service hospital. BHP is delivering on that.”

A state spokesman declined to say on what grounds specifically it torpedoed talks. The university will start negotiating today with The Peebles Coproration, which offered the highest purchase price of $260 million and which plans to build an unspecified type and amount of housing and partner with Maimonides Medical Center, North Shore—LIJ, and ProHealth to build an ambulatory surgery center, specialists offices, and a healthcare center somewhere in Gowanus or Red Hook.

The settlement agreement that sparked the latest round of bidding was designed to award highest scores to plans that kept the 156-year-old Cobble Hill hospital a hospital.

When asked how Peebles came in second place without a hospital in its plan, a state spokesman pointed to the state’s request for proposals. The document states that offers could receive a higher score if they included a full-service hospital with at least 100 inpatient beds, a teaching hospital, or an affiliation to a teaching hospital, and if they called for maintaining some healthcare operations after the state drops Long Island College Hospital like a hot potato. Proposals that lacked a full-service emergency room, intensive care unit, and inpatient beds were supposed to receive lower scores, according to the call for pitches, which came out of a court agreement that ended a yearlong legal battle over the state’s attempts to close the hospital. The medical campus sits on real estate valued at as much as $500 million.

A lawyer who represented six community groups in the lawsuit against the state said yesterday that he could be back in court on Tuesday or Wednesday. An anti-closure activist that he represents said he and other anti-closure advocates are still weighing what they do next.

Peebles head Don Peebles has political ties to State University of New York chairman H. Carl McCall, Crain’s New York Business first reported.

The state has said it will walk away from the hospital on May 22 at 7 am, no matter if someone is lined up to take it over or not.

Reach reporter Megan Riesz at or by calling (718) 260-4505. Follow her on Twitter @meganriesz.
Updated 10:17 pm, July 9, 2018
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Reasonable discourse

BK from BK says:
Finally somebody in the media is asking WHY & HOW real estate developers Peebles & Fortis ended up in the 2nd & 3rd place spots. Just look at the score charts that were made public. SUNY evaluators gave Peebles & Fortis top scores for full hospital services when neither proposal included a hospital. Looks like SUNY rigged the scoring to get their line-up in place.

Another scandal in Brooklyn
May 6, 2014, 12:19 pm
CG says:
Why doesn't BHP understand that continuation of LICH services in this community is the most important thing & closure for any amount of time is not acceptable? Don't they remember they won with a proposal to have a bridge hospital starting when SUNY leaves? Now they say they aren't going to deliver uninterrupted services LI CH because they don't plan to open the bridge hospital right away (so now there's not even a "bridge" hospital) & LICH will be closed for many months with maybe just some doctor's offices or a clinic open. Not even an emergency room would be operating. They gave SUNY a reason to dump them when they announced that they won't start the bridge hospital until sometime after November & only IF they could get a license then. Stopping all services except doctors office & a clinic & closing LICH doors & the emergency room for many months was not the deal that won 1st place.
May 6, 2014, 12:35 pm
disgusted from brooklyn says:
Peebles has financial ties to SUNY chairman Carl McCall. They invest together. Gov Cuomo has financial ties to Fortis. They buy him with campaign donations. They all get rewarded with real estate. Such is the way business is conducted by NYState.
May 6, 2014, 12:40 pm
Licher from Bayridge says:
The scandal is how these community groups wasted hundreds of millions of dollars of taxpayer money on a hospital a half a billion in the red. The major news organizations NY Times, Daily News, Post, and Wall Street Journal are NOT saying one word positive about LICH. Why, they see the folks supporting LICH are telling lies lies and more lies. Time for the Attorney general to bring these LICH folks in for wasting every single NYS taxpayers money.
May 6, 2014, 1:29 pm
Disgusted from Brooklyn says:
As BK says, look at the RFP score sheets. One SUNY scorer gave a score of 0 out of 70 to all hospital bidders and gave Fortis -- with no hospital -- a score of 70/70. The whole thing was bogus. Judge Baynes should tear up SUNY's setttlement agreement with community litigants -- since SUNY has not honored even its minimal commitments under that agreement -- and send SUNY back to court for contempt. Then tappoint a trustee to oversee the hospital's future.
May 6, 2014, 5:41 pm
CommonCents from Crown Heights says:
So it goes when you let bureaucrats control healthcare...
May 6, 2014, 5:47 pm
Curious from Want to Know says:
I still don't understand why the hospital has to close now that Obamacare is up and running. Wasn't Obamacare going to save all the hospitals and make everyone healthy?
May 6, 2014, 9:22 pm

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