Mayor says CPMC expansion talks include community benefits; city will fold them into a development agreement

Mayor Lee told the Board of Supervisors that his office has pushed for a broad set of community benefits in negotiations over the proposed California Pacific Medical Center (CPMC) expansion and intends to incorporate those benefits into the city's binding development agreement with the hospital.

"We're paying very, very close attention to this project," Mayor Lee said during the question-and-answer period. He listed areas where he had sought benefits: health care for the needy, the future of St. Luke's Hospital, affordable housing, workforce development, transit and pedestrian improvements, and measures to limit transportation impacts.

Supervisor Ekumar asked whether the mayor would require CPMC to enter into a community benefits agreement (CBA) before the city approved the project. The mayor responded that his office has "made good progress towards the community benefits goal" after "well over a year of discussion" among stakeholders and that when discussions conclude, "these community benefits will be incorporated into a development agreement, which is the city's binding legal agreement with CPMC so that the city can stand behind them and bring its resources to bear in any action to enforce them."

Lee also said his staff would work closely with the City Attorney to draft "a tight and enforceable agreement with strong remedies in case of default and clear oversight and monitoring" and that the public would have time to review the agreement before final approval.

He urged the hospital and community coalitions to meet directly to address outstanding issues, while noting there are "topics that our office cannot get into" and encouraging direct negotiation between CPMC and community groups.

The Board did not vote on the project during the mayoral appearance. No formal development agreement language or timing for final approval was provided at the meeting.

Speakers and supervisors emphasized that community groups have sought the ability to enforce benefits provisions. The mayor's statement that the development agreement will incorporate community benefits was intended to address that enforcement concern while acknowledging legal limits on what a development agreement can contain.

The transcript does not record a formal vote or a binding legal conclusion; it records the mayor's commitment that his office will work with the City Attorney to draft enforceable language and allow public review prior to any final approval.