LAGUNA BEACH : Hospital Open Space Proposal Modified

After hearing two hours of testimony from hospital staff and residents, the City Council modified a recommendation that South Coast Medical Center give the city 8.9 acres of open space in return for city approval of hospital expansion.

Instead, the hospital will retain ownership of the entire parcel and deed to the city development rights for the 6.8-acre section currently zoned for open space. The remaining 2.1 acres will be left zoned for institutional use.

Deeding of development rights to the city means that the hospital is responsible for taxes and keeps the land but cannot build on it, said Jack Connors, city zoning administrator.

The meeting was held because of an appeal of a city decision to dedicate the entire parcel to the city in exchange for approval of a new four-story parking garage and medical office building at the community hospital.

Hospital officials asked the city not to take the vacant land on Sunset Avenue in back of the facility, saying such a move would hinder the hospital’s ability to expand in the future.

Michael Murray, the hospital’s president, said the hospital may use the 2.1 acres to build a skilled nursing center for senior citizens and a ward for AIDS patients.

Murray said the hospital has agreed to keep the remainder of the parcel as open space. But giving the land to the city would jeopardize the hospital’s $5.1-million mortgage and could affect new bond financing for the facility.

However, other residents argued that the hospital should give all the land to compensate for the impact of the expansion which will block views and add traffic to already crowded South Laguna streets.