Watsonville hospital’s leaders ‘cautiously optimistic’ as bond measure trends toward approval.

Inside downtown Watsonville’s newest spot to see and be seen, those concerned for the future of Pajaro Valley’s hospital gathered at Watsonville Public House, where they sipped beer created by pastor-basketball coach-brewmaster Robby Olson as they wound down a busy Election Day and awaited the fate of Measure N, a bond meant to upgrade the deteriorating healthcare facility and further cement its public ownership.

A small but steady stream of people trickled into the brewpub, including Monterey County Supervisor Luis Alejo, back in his hometown of Watsonville, as well as various hospital officials and current and former elected officials. As they grabbed a tamale and a plate of fruit, they turned their gaze to the projection on the screen, where Olson was trying to find a news station with local results but ended up on CNN.

But as the clock turned to 8pm, the lively chatter dulled down as attendees were glued to their phones, refreshing the Santa Cruz and Monterey counties election websites, anxious for information.

As of the first round of results released just after 8pm on Tuesday, March 5, Measure N, which requires two-thirds in favor to pass, garnered 70 percent of the vote in Santa Cruz County with 7,256 votes counted. In Monterey County, voters were 64 percent in favor out of 439 votes counted so far.  

While close to the 66.7 percent cutoff, the results came in about as expected, landing about where earlier polling indicated, says Tony Nuñez, president of the Pajaro Valley Health Care District board, which placed the measure on the ballot. 

“I’m cautiously optimistic,” he says. “Everyone put in so much work and did everything they could to get us to tonight. We’ll hope we make up a few points here and it’s a little more decisive. It’s a really great start.”

Watsonville Community Hospital is the closest hospital for roughly 6,500 North Monterey County residents, about 15 or so minutes closer to the next facilities in Salinas.

The hospital was saved from closure after last-minute legislation by State Sen. John Laird to create the Pajaro Valley Health Care District and a flurry of fundraising to purchase it from former owner Halsen Healthcare, which filed for bankruptcy in December 2021.

The $64 million purchase brought the hospital back into public ownership after more than two decades of ownership from various for-profit entities.

While the efforts staved off the closure, the hospital’s new operators say the job is far from finished.

The healthcare district’s board decided to place the bond measure on the ballot, which had no filed opposition. The measure would add $24 per $100,000 of assessed value on property tax bills for the next 30 years on properties within the district, which stretches from Pajaro and Royal Oaks in North Monterey County, up to areas of Aptos and Corralitos in Santa Cruz County.

The bond would raise $116 million to purchase the building and land it sits on near the Watsonville Municipal Airport, saving $3 million in rent the hospital pays annually to an Alabama property owner.

In addition, funds will go toward renovations, including for the emergency room, HVAC systems and other areas, as well as purchasing new equipment such as CT scanners and MRI machines.

With the results trending toward the measure’s approval, what’s next for Watsonville Community Hospital?

The district will begin creating a citizens’ oversight committee, which will keep an eye on how the district is spending the money and ensure it meets the bond’s requirements.

Officials will then begin the process of purchasing the land and building.

“From the second this board was put together, it was, ‘OK, the hard work is done, now the hard work begins,’” Nuñez says. “If it passes, let’s make sure we follow through on everyone’s commitment. Our community needs this. It’s not just Watsonville, it’s not just the Pajaro Valley, but the entire Central Coast. We’ve got to put on the big boy pants and do the work.”