King-Harbor was shutdown in 2007 after a series of highly publicized incidents, including a woman who died in the hospital's waiting room.
The plan, unveiled on Wednesday, would turn the facility and surrounding area into a medical campus.
"It's such good news, and so much has been done, we thought we'd be well served to share it with the people of the county of Los Angeles and this community," said L.A. County Supervisor Mark Ridley-Thomas.
The facility would reopen with 120 beds at a cost of $200 million.
"We do need that trauma center. Plus this community is not that rich, so they have no insurance to go other places and all that," said Watts resident Alex Bradbury.
The L.A. County Board of Supervisors will hear a formal presentation of the plan next week.
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