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Lancaster council authorizes ground lease, CEQA notice for proposed 96‑bed behavioral health hospital
Summary
The council unanimously approved a CEQA notice of exemption and Resolution 25‑47 allowing the city manager to finalize a ground lease with UHS Incorporated for a proposed 96‑bed behavioral health hospital backed by an $83 million state award.
Lancaster City Council unanimously approved a California Environmental Quality Act (CEQA) notice of exemption and adopted Resolution 25‑47 on a ground lease with UHS Incorporated for a proposed 96‑bed behavioral health hospital.
Nicole Jones, who presented the staff report, said the project is tied to an award from the California Department of Health Services’ Bond Round 1 Launch Ready program. “As you know, in May, we were awarded, for round 1 in the amount of $83,000,000, for an acute psychiatric hospital in partnership with Palmdale Regional Medical Center,” Jones said. She asked the council to authorize the city manager to finalize, negotiate and execute the ground lease substantially in the form presented and to sign related program funding agreements and attachments.
The resolution and the CEQA notice of exemption are procedural steps required to accept the state funding and proceed toward construction, Jones said. She confirmed the city has not yet chosen a name for the facility and that the city had referred to it as “the behavioral health facility.” Council members asked about workforce commitments; Jones said a community workforce agreement will be included.
Staff stated a target state deadline requires the project to be completed and operational by 2030, though Jones said the city’s goal is to finish earlier than that. The council voted to adopt the resolution and approve the CEQA notice of exemption by unanimous vote.
What happens next: city staff will finalize the ground lease and execute program funding documents with the state and project partners, then proceed with the steps required to advance design and construction. The council did not set a final facility name during the meeting.
Ending — next steps and timeline: With the resolution and CEQA action approved, the city manager is authorized to complete lease and funding agreements; staff said state timelines call for the hospital to be operational by 2030.
