Annual Review of Hoag Memorial Hospital Presbyterian Development Agreement (PA2025-0046) Site Location: 1 Hoag Drive

This item is the annual review of the Development Agreement (DA) No. 5 for Hoag Memorial Hospital Presbyterian, located at 1 Hoag Drive. The DA, originally executed in 1994, has been amended multiple times, most recently in November 2021, extending its term to 2040. The purpose of this review is to determine if Hoag has complied in good faith with the terms of the agreement, as required by municipal code and state law.

Key Findings:

• Compliance: Staff found Hoag to be in good faith compliance with the DA's terms for the period of March 2023 to March 2025.
• Construction: Construction has been limited to interior improvements and routine maintenance, with no major new construction or additions.
• Landscaping: Ongoing maintenance and watering have resulted in continued health and coverage of landscaping areas on the lower campus.
• Co-Gen Plant: The Cogeneration Plant has operated in accordance with plume reduction protocols and noise mitigation efforts.
• Noise: Sound testing was deemed unnecessary by homeowner associations due to no changes in the Cogeneration Plant's condition. No noise complaints have been received.
• Public Benefits: Hoag has fulfilled its financial obligations for public benefits, including funding the Melinda Hoag Smith Center for Healthy Living and making annual payments to the City. Payments totaling $2,400,000 have been made towards the public benefit obligations.

Environmental Review: The review is exempt from CEQA as an enforcement action.

Public Comment: Jim Mosher submitted comments questioning the accounting of Hoag's public benefit payments, suggesting that two more $300,000 payments may still be due under the terms of the 2021 amendment.