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KAISER EIR CSA AMENDNtENT N0.2 2 October 5, 2009 <br />In the last year, with the economic uncertainty surrounding land value, retailing activity, <br />financing, etc. Kaiser and ICI Development Company met exhaustively to finalize their contract. <br />On June 12, 2009, Luke Sims, Community Development Director received a letter from Nora <br />Klebow, Project Director of the San Leandro Medical Center stating that Kaiser Permanente was <br />withdrawing their permission for the ICI Development to apply for entitlements on property <br />owned by Kaiser. The letter stated the following: "Due to changes in the economy relating to <br />new retail development, we have been unable to reach agreement with ICI Development <br />Company for the sale of the northern portion of our site and we are no longer able to conduct a <br />project level analysis of the ICI retail-mixed use development project previously known as <br />Marina Point." On July 22, 2009, Kaiser submitted an application for the San Leandro Medical <br />Center Project, which included a slightly modified plan for the Medical Center and a <br />programmatic level of detail for the retail development. The request from Kaiser Foundation <br />Hospitals is for a project level Environmental Impact Report (EIR) for the San Leandro Medical <br />Center and includes a program only level analysis for a retail development without a specific site <br />plan. <br />(A project level EIR comprehensively analyzes a specific project; a program level EIR covers <br />broad concepts, such as square footage of a particular use, and acknowledges subsequent <br />environmental study will be necessary when the full details of the proposal are available. In this <br />case, with no site plan for the retail portion, just proposed square footages, subsequent <br />environmental analysis will be needed.) <br />Kaiser proposes to develop the approximately southern 38 acres of the site with a Kaiser <br />Permanente Medical Center (the "Kaiser Medical Center Project"). The Kaiser Medical Center <br />Project would be implemented over two or more phases, with the construction of a hospital and <br />support facilities between 2012 and 2014 with the opening of Phase I in early 2014; other <br />possible phases would be completed by 2030. Phase I would consist of an approximately <br />436,000 square foot ,six-story, 264-bed hospital, a Hospital Support Building ("HSB") of up to <br />six stories and 275,000 square feet, a 31,000 square foot Central Utility Plan ("CUP"), a 20,000 <br />square foot outdoor service yard, and parking necessary to meet the parking demand at any <br />particular phase of construction. Total parking for Phase I would not exceed 2,100 stalls and <br />could include surface parking or, at Kaiser's discretion, an additional parking structure for a <br />portion of the required Phase 1 parking. Build-out of the Kaiser Medical Center may include the <br />potential expansion of the hospital and/or the construction of new medical offices or other uses <br />after the initial complement of construction is completed and through January 1, 2030. Build-out <br />could include expansion of the Kaiser Medical Center by an additional 375,000 square feet <br />including a 175,000 square foot 120-bed hospital, the construction of two 100,000- square foot <br />medical office buildings and any associated expansion of the CUP, with Kaiser Permanente <br />retaining the flexibility to allocate buildout square footage between medical office, hospital and <br />other permitted uses, based on a total buildout "trip bank" to be determined in conjunction with <br />the traffic analysis. <br />The approximately 25 acres of land reserved for a future retail component would continue to be <br />owned by Kaiser until such time as the retail market improves and Kaiser sells this portion of the <br />project for development as a retail center. The retail project would be a 387,000 square foot <br />shopping center to consist of large format stores, multi-tenant uses, restaurants, soft goods, and <br />service-oriented retailers, and is expected to be completed between January 1, 2014 and January <br />1, 2018, depending upon the demand for retail services at the location. The retail project also <br />