El Cajon council pauses proposed zoning change affecting Kaiser site, asks for progress report by July 8

The El Cajon City Council on April 22 agreed to delay final action on a zoning-code amendment that would remove hospitals as an allowed use in certain commercial zones for one property owned by Kaiser Permanente.

Kaiser representatives asked the council for a continuance to negotiate assurances that would allow them to proceed with a hospital on the former El Cajon Valley Hospital site; the council agreed to continue the discussion and requested a progress report or draft term sheet by July 8.

Skyler Denniston, representing Kaiser Foundation Hospitals, said the site at Greenfield and Main had been acquired "for the sole purpose of developing a medical, hospital there" and requested additional time to negotiate. "We would like to commit to building a hospital, a state of our hospital for this community," Denniston said.

Jennifer Lynch, outside counsel for Kaiser (Manatt, Phelps & Phillips), warned the council that if it proceeded to remove hospital uses for the specific property, Kaiser could raise equal-protection and other legal claims. "If the council moves forward with this rezoning tonight, we'll be violating Kaiser's rights to equal protection," Lynch said, asserting that the city—s stated land-use rationale did not match documents and correspondence she had reviewed.

City staff told the council the proposed amendment to the commercial land-use table would affect 327 parcels currently zoned OP (office professional) and CN (neighborhood commercial). The staff analysis recommended replacing conditional hospital listings in some zones with a prohibition (a land-use table "x"). During an initial hearing, Councilmember Steve Gobel was disqualified from participating in section 20 because he lives within 500 feet of the affected property; the council planned a straw vote on the Kaiser-related portion with Gobel temporarily absent.

Council members expressed frustration at what they described as repeated delays in development at the site. Mayor Wells and other council members said residents consider the property an eyesore and want a firm commitment or enforceable schedule from Kaiser.

Rather than adopt the commercial land-use change at the same time as other zoning-code amendments, the council voted unanimously to introduce the zoning-code ordinance with section 20 (the commercial land-use table change) omitted and to continue the Kaiser-specific matter. The council directed staff and Kaiser to pursue a development agreement, term sheet or memorandum of understanding and to return with a progress report or draft term sheet by the July 8 meeting.

Why it matters: The property in question comprises the former El Cajon Valley Hospital site; zoning changes would affect whether a large, 24-hour hospital could be permitted in OP and CN zones. The council—s request for a development agreement signals it seeks enforceable commitments before the city enacts a land-use change that could preclude future hospital construction.

Decisions and next steps: The council unanimously adopted the CEQA resolution and introduced the zoning-code ordinance excluding section 20. The Kaiser-specific section will be revisited on July 8 with a progress report or proposed term sheet; the council also indicated it may pursue a development agreement that could obligate construction timelines or other enforceable commitments.

No final rezoning decision for the Kaiser parcel was made at the meeting; staff and Kaiser representatives both asked for the continuance, and the motion to set a July 8 follow-up carried unanimously.