BURLINGAME, Calif. - After five years of wrangling with local officials, Mills-Peninsula Health Services won approval to build a $488 million replacement hospital by 2013. Under a 50-year land-lease contract approved by the Peninsula Health Care District, Sutter Health-affiliated Mills-Peninsula will build a seismically safe, 450,000-square-foot hospital to replace 380-bed Peninsula Medical Center, which it has leased from the district since 1985. It will also pay the district $1.5 million a year in rent. The hospital's design must next be approved by the California Office of Statewide Health Planning and Development. Under the unanimously approval contract, if OSHPD decides the design needs costly modifications, Mills-Peninsula has the right to propose a replacement project. If the district fails to accept or denies the replacement project within 60 days, it would automatically be disapproved. In addition, if Mills-Peninsula decides to sell the hospital before the 50-year term, the district would have a year to pull together resources, like a general obligation bond, to buy the facility. District residents must still vote on the contract.