Request from from LSU Health Care Services Division to Approve a Request to Sellthe Former Earl K. Long Hospital PropertyDate: September 11, 20201. Bylaw CitationPursuant to Article VII, Section 1B.The transfer of title or ownership to any immovable property to or from the Board,whether by sale, assignment, donation, or other mechanism.2. Summary of MatterThe LSU Health Care Services Division (HCSD) requests approval by the Board of Supervisors tosell property located at 5825 Airline Highway, Baton Rouge, Louisiana 70805.The property is the site of the former LSU Earl K. Long Medical Center. As a result of thepublic/private partnership entered into between LSU and Our Lady of the Lake in April of 2013,the hospital building and other adjacent structures were vacated and later demolished leavingmostly vacant land at this 14 acre site. HCSD has no further use for the site, and there areunfunded maintenance costs associated related to this site making it difficult to maintain the site.HCSD is seeking Board approval to request the Division of Administration, to handle the processof selling the property to include securing an appraisal and site survey of the boundary,advertising and gathering bids and contracts, as well as any and all additional issues associatedwith the property.3. Review of Business PlanHCSD is proposing that proceeds from the sale of the property be returned to HCSD to be usedto address deferred maintenance issues on its remaining property.4. Fiscal ImpactThe property would be sold for an amount approved by the Division of Administration and LSUin accordance with state law.The former Kmart facility was renovated to accommodate the Administrative and Business Officeof the Health Care Services Division in 2012 at a cost of 2.1M. The renovation was an interiorrenovation that did not include the replacement of the roof. Roof leaks have developed sinceHCSD has occupied the building putting the interior office space, equipment, medical records aswell as business records in jeopardy. A capital outlay request was submitted to replace the roofin 2014, but to date has not been funded. Upon approval by the Board of Supervisors, HCSDintends to submit a request to the Commissioner of Administration to retain the proceeds fromthe sale of the property to fund the cost of replacing the roof.
5. Description of Competitive ProcessHCSD is requesting approval for the Division of Administration to handle all processesassociated with the sale of the property.6. Review of Legal DocumentsTo be submitted for review when property is sold.7. Parties of InterestBoard of Supervisors of Louisiana State University and Agricultural and Mechanical College, theLSU Health Care Services Division and the Division of Administration.8. Related TransactionsHCSD would request the Division of Administration to handle the process of selling the propertyto include securing an appraisal and site survey of the boundary, advertising and gathering bidsand contracts, as well as any and all additional issues associated with the property.Upon approval by the Board and the Commissioner of Administration, HCSD would use thefunds from the sale of the property to offset the cost of replacing the roof on the Administrativeand Business Office of HCSD.9. Conflicts of InterestNone.10. AttachmentsI.II.Letter from Chancellor Larry HollierAsset Management ReportRESOLUTIONNOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors of Louisiana StateUniversity and Agricultural and Mechanical College hereby authorizes Thomas C. Galligan, Jr.,Interim President of Louisiana State University, or his designee to:1.Request the Division of Administration to approve the sale of the LSU Health CareServices Division property located at 5825 Airline Highway, Baton Rouge, and tohandle the process of selling the property in accordance with all applicable laws; and2.Request the Division of Administration to deliver the net sales proceeds to the Boardof Supervisors of Louisiana State University and Agricultural and Mechanical College2
for the benefit of the LSU Health Care Services Division be used for deferredmaintenance issues.BE IT FURTHER RESOLVED that Interim President Galligan be authorized to sell the formerEarl K. Long site thereof, and that Interim President Galligan be authorized to execute an act ofcash sale and any and all other documents necessary to accomplish the transaction and to includein such act of cash sale or other documents any terms and conditions as he deems to be in the bestinterest of LSU.3
Request from LSU Health Sciences Center - New Orleans to Approve an Intent toLease Agreement between the LSU Health Foundation and the LSU Board ofSupervisors for the Lease of the Clinical Education, Dibert, and L&M BuildingsDate: September 11, 20201. Bylaw CitationPursuant to Article VII, Section 1C.Lease of Immovable Property2. Summary of MatterThe LSU Health Sciences Center – New Orleans (LSUHSC-NO) proposes to enter into an Intentto Lease Agreement with the LSU Health Foundation, New Orleans (Foundation) for the ClinicalEducation, Dibert, and L&M buildings and land (Properties). The purpose of the Intent to LeaseAgreement is to provide an outline of the process and guidelines that the Foundation intends toobserve in connection with the competitive selection of vendors and the negotiation of proposedagreements with one of more sublessee(s) for the redevelopment of the Properties and returningthem to commerce for LSUHSC-NO students, residents, faculty, staff, visitors and the generalpublic and for such other uses as are consistent to support either residential or mixed uses, relatedservices and other missions and functions of LSUHSC-NO. Once confected, the final LeaseAgreement between the Foundation and the LSU Board of Supervisors (LSU Board) will besubmitted to the Foundation's Board of Directors and, following approval by the Foundation'sBoard of Directors, to the LSU Board (and any other agencies required by law) for review andapproval. Any subsequent amendments to the Lease Agreement shall follow the same reviewand approval process.3. Review of Business PlanNot applicable until such a time as Foundation proposes a project presented by a vendor.4. Fiscal ImpactNot applicable.5. Description of Competitive ProcessNot applicable until such time as the Foundation solicits proposals from qualified vendors todevelop the Properties.6. Review of Legal DocumentsThe final Intent to Lease Agreement will be reviewed by the LSU Office of General Counsel priorto signature by Interim President Galligan or his designee.
7. Parties of InterestAll parties relevant to the approval of this agreement do not have any related interest in theagreement nor will they receive financial gain from this approval.8. Related TransactionsNot applicable.9. Conflicts of InterestNone.10. AttachmentsI.II.Intent to Lease Agreement, with property descriptions, and campus map with propertylocation (Exhibit "A")Letter from Chancellor Larry Hollier, MDRESOLUTIONNOW, THEREFORE, BE IT RESOLVED that the Board of Supervisors of Louisiana StateUniversity and Agricultural and Mechanical College does hereby authorize the President ofLouisiana State University, or his or her designee, to approve the proposed Intent to LeaseAgreement (Agreement) with the LSU Health Foundation, New Orleans (Foundation) for theClinical Education, Dibert, Butterworth, Hutchinson and L&M buildings and land.BE IT FURTHER RESOLVED that the President of Louisiana State University, or his or herdesignee, is hereby authorized by and empowered for and on behalf of and in the name of theBoard of Supervisors, in consultation with General Counsel, to include in the Agreement any andall provisions and stipulations that he deems in the best interest of the Board of Supervisors.2
ATTACHMENT IINTENT TO LEASE AGREEMENT FOR THE LSU HEALTH SCIENCESCENTER – NEW ORLEANS, DIBERT, L&M, AND LSU MEDICAL SCHOOLBUILDINGSBetweenBOARD OF SUPERVISORS OF LOUISIANA STATE UNIVERSITY AND AGRICULTURALAND MECHANICAL COLLEGEandLSU HEALTH FOUNDATION, NEW ORLEANSTHIS INTENT TO LEASE AGREEMENT FOR THE LSU HEALTH SCIENCESCENTER-NEW ORLEANS, DIBERT, L&M AND LSU MEDICAL SCHOOL BUILDINGS,AND LAND (herein "Agreement") is entered into effective as of the day of , 2020(the "Effective Date"), by and betweenBOARD OF SUPERVISORS OF LOUISIANA STATE UNIVERSITY ANDAGRICULTURAL AND MECHANICAL COLLEGE, a public constitutionalcorporation organized and existing under the Constitution and laws of the State ofLouisiana, domiciled in the Parish of East Baton Rouge, said State, appearing hereinthrough Daniel T. Layzell, Vice President for Finance and Administration and ChiefFinancial Officer of Louisiana State University, duly authorized and empowered by saidBoard of Supervisors (hereinafter referred to as the "LSU Board"),andLSU HEALTH FOUNDATION, NEW ORLEANS, a private nonprofit Louisianacorporation having a principal place of business located at 2000 Tulane Avenue, NewOrleans, Louisiana, 70112, and represented by Matt Altier, its duly authorized andempowered President and Chief Executive Officer (hereinafter referred to as"Foundation"), provides as follows:WHEREAS, the LSU Board is a public constitutional corporation organized and existing underthe laws of the State of Louisiana, and Louisiana State University Health Sciences Center at New Orleans(the “University”) is an institution under the LSU Board’s supervision and management pursuant to La.R.S. 17:3215;WHEREAS, the Foundation is a private, non-profit corporation organized and existing underthe Louisiana Non-Profit Corporation law (La. R.S. 12:201, et seq.) whose purpose includes the supportof and benefit for the educational, scientific, research and public service missions of the University;WHEREAS, pursuant to La. R.S. 17:3361, et seq., the LSU Board is authorized to lease to theFoundation any portion of the campus of the University;WHEREAS, the LSU Board and the Foundation seek to further the mission and functions of theLSU Board through the redevelopment of several unused buildings in the New Orleans Medical District1737655v.7
area and returning these buildings to commerce as either residential or mixed used properties forUniversity’s students, residents, faculty, staff, visitors and the general public and for such other uses asare consistent therewith; andWHEREAS, the LSU Board and the Foundation have agreed to enter into this Intent to Lease tooutline the proposed relationship of the parties and the project.NOW THEREFORE, the parties agree as follows:1.PurposeThe purpose of this Intent to Lease Agreement is to provide an outline of the process andguidelines that the Foundation intends to observe in connection with the selection of vendors and thenegotiation of proposed agreements with one or more sublessee(s) for the redevelopment of severalunused buildings in the New Orleans Medical District area and returning these buildings to commercemixed used properties generally supporting the University’s students, residents, faculty, staff, visitorsand the general public and for such other uses as are consistent therewith to support University’s mixeduses, related services and other missions and functions of the University (herein the “Project”). If anagreement is reached between the Foundation and a sublessee that is acceptable to LSU, LSU intends tolease to the Foundation the following described property; as such property is more fully described furtherdefined in EXHIBIT “A” hereto:A. DIBERT BUILDING, bearing a municipal address of 340 South Claiborne Avenue,New Orleans, LA 70112;B. L&M BUILDING, bearing a municipal address of 1620Tulane Avenue, New Orleans,LA 70112;C. LSU MEDICAL SCHOOL BUILDING, bearing municipal address of 1542 TulaneAvenue, New Orleans, LA 70112;Any such lease shall be for the construction and operation of the Project (as will be morespecifically described in any resulting lease agreement) pursuant to the authority of La. R.S. 17:3361, etseq. or other applicable law.2.ProcessThe Foundation will develop a process to manage the development of the Project.development phase of the Project is expected to involve the following:TheA.Through a competitive process, and with the consent of University, the Foundation willseek proposals for one or more sublessees with significant experience in projects similar to the Project.The Foundation will engage in an appropriate competitive process to evaluate potential sublessees.B.Based on the above outlined process, the Foundation, with the University’s approval, willselect one or more sublessees possessing significant experience in projects similar to the Project, withwhich Foundation will negotiate one or more proposed agreements and/or subleases between theFoundation and the sublessee(s).21737655v.7
Interim President of Louisiana State University, or his designee to: 1. Request the Division of Administration to approve the sale of the LSU Health Care Services Division property located at 5825 Airline Highway, Baton Rouge, and to handle the process of selling th