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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: NOVEMBER 7, 2023
FROM: PLANNING AND BUILDING DEPARTMENT
SUBJECT: ANNUAL REVIEW OF DEVELOPMENT AGREEMENT
NO. 2007-00003 FOR THE KAISER HOSPITAL CAMPUS
PROJECT
ATTACHMENT (Y/N): YES ITEM # 03
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, determine, on the basis of the evidence submitted by Kaiser Foundation Hospitals, that the property owner has complied in good faith with the terms and conditions of Development Agreement No. 2007-00003 for the 2023 review period for the Kaiser Hospital Campus Project, located at 3400-3450 East La Palma Avenue and 959-1001 North Grove Street.
DISCUSSION:
A Development Agreement is a contract between the City and property owner that provides certainty to the developer that the approved project will be exempt from future changes to zoning laws and requires the developer to provide benefits to the City in exchange for that certainty. On June 24, 2008, the City of Anaheim and Kaiser Foundation Hospitals (Kaiser) executed Development Agreement No. 2007- 00003 (“Agreement”) to govern the development of the Kaiser Hospital Campus Project (Project) at 3400-3450 East La Palma Avenue and 959-1001 North Grove Street. The Agreement is included as Attachment 2.
The Project consists of development of a medical office campus that Kaiser will build in multiple phases over a nearly 25-year period (completion by 2033). The Project includes a 360-bed hospital, administrative offices, medical office buildings, a central utility plan, retail areas, and associated parking. Build-out of the Project will result in 1.2 million square feet of total building space and an estimated 3,782 parking spaces.
Kaiser has completed construction of the 260-bed hospital building, a medical office building attached to the hospital, a freestanding one-story medical office building, a central utility plant, a four-story office building, and a six-story parking structure.
Forthcoming project elements include an additional medical office building, Annual Review of Development Agreement No. 2007-00003
November 7, 2023
expansion of the hospital to add 100 beds, and a second parking structure. Kaiser expects to begin construction on the remainder of the project by 2025.
Pursuant to the Development Agreement, the City Council is required to determine annually if Kaiser has complied in good faith with the terms and conditions of the Development Agreement.
Demonstration of good faith compliance includes conformance with all terms and schedules set forth in the Development Agreement. If the Council finds that the property owner has demonstrated good faith compliance, the review for that period is complete.
The Development Agreement required Kaiser to contribute $2,000,000 to the City for an “Infrastructure Improvement Fund” within two years of the execution date (June 24, 2010), provide fair share funding for traffic improvements prior to the issuance of the first building permit, and obtain the first building permit within five years of the execution date (June 24, 2013). Kaiser has fulfilled all of these milestones. There are no performance milestones in this Annual Review.
Kaiser has submitted the attached Annual Review Letter dated October 5, 2023, requesting a determination of good faith compliance with the Agreement. Staff confirmed that Kaiser has complied with their obligations under the Agreement. Therefore, staff recommends that the City Council determine that Kaiser has complied in good faith with the terms and conditions of the Agreement for this review period.
IMPACT ON BUDGET:
There is no budgetary impact. Kaiser pays for the processing costs associated with this annual review.
Respectfully submitted,
Ted White
Director of Planning and Building
Attachments:
1. Development Agreement Annual Review Letter
2. Development Agreement
3. Vicinity Map