Eastshore Consulting, LLC at Mendocino Coast Hospital District

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This Lease Agreement, executed on May 5, 2020, outlines the terms under which Mendocino Coast Health Care District (Landlord) leases a critical access hospital facility and existing FF&E to Adventist Health Mendocino Coast (Tenant). The lease term commences on the 'Commencement Date' (an unfixed date contingent on various approvals) and continues for 30 years. Tenant agrees to pay an initial annual Base Rent of $1,750,000, which may increase to $2,950,000 after three years based on financial performance and subsequently adjusted by CPI. The agreement details responsibilities for maintenance, compliance, and includes provisions for an annual $2,000,000 Improvements Fund and a Restricted Capital Fund for seismic compliance and facility development. Tenant is granted a Purchase Option for the hospital assets.

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This Lease agreement outlines a 30-year tenancy for a critical access hospital and its FF&E between Mendocino Coast Health Care District (Landlord) and Adventist Health Mendocino Coast (Tenant). The lease commences upon satisfaction of electorate and regulatory approvals, with Tenant assuming operation of the hospital. Annual Base Rent starts at $1,750,000 for the first three years, potentially increasing to $2,950,000 with CPI adjustments thereafter based on the Medical Business's EBITDA. The Landlord commits to an annual Improvements Fund of $2,000,000, also subject to CPI adjustments, for facility maintenance and new FF&E. Tenant has an option to purchase the property after the third anniversary of the Commencement Date. The agreement details responsibilities for maintenance, compliance, hazardous substances, indemnification, insurance, and defines conditions for default and remedies for both parties.

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This document is a proposal from Lutz for professional accounting services to Mendocino Coast Health Care District. Lutz emphasizes its client-focused approach, team stability, and healthcare expertise. The scope of services for fiscal year 2026 includes transaction recording, monthly financial statement preparation, analysis, review, and reconciliation. Fees are based on time incurred, with estimated monthly fees ranging from $800 to $1,100. The proposal also outlines the client engagement team, the ThreadWorks client portal, and the onboarding process. Terms and conditions regarding dispute resolution and liability limitation are included.

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HOSPITAL ASSESSMENT CONSULTING SERVICES (HACS)