Deal struck with medical group guarantees a windfall in revenue

City officials and the Palo Alto Medical Foundation have negotiated a plan guaranteeing millions in revenue for the city, quelling some fears that a proposed hospital would not generate enough tax dollars to San Carlos.

PAMF plans to build a new, 110-bed hospital and medical center at the corner of Holly Street and Industrial Road. The nonprofit is negotiating a development agreement in response to city concerns that the hospital would not generate the $30,000 per year in property taxes expected from a commercial development.

In the proposed 30-year development agreement, to be reviewed for the first time Monday by the City Council, PAMF would create a $9 million endowment guaranteeing the city at least $630,000 annually, according to a city memorandum. That figure will increase to more than $1 million per year toward the end of the agreement.

PAMF is also committed to a one-time $1 million contribution toward the city’s athletic fields and facilities and another $1.5 million to the San Carlos Educational Foundation, PAMF spokesman Ben Drew said.

“I’m comfortable with what I’ve seen so far,” Mayor Matt Grocott said.

Sol Kutner, Chairman of awatchdog group formed in response to the project, the San Carlos Citizens for Responsible Planning, said his group remains concerned about infrastructure funding, particularly for traffic mitigation, which has not been laid out in the development agreement. “It sounds like they’re contributing what I call feel-good social services like nurses and police,” Kutner said. “But to me, that’s secondary to the infrastructure.”

tramroop@examiner.com

Bay Area NewssportsTransittransportation

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

Gov. Gavin Newsom, show here speaking at the City College of San Francisco mass vaccination site in April, faces a recall election due to anger on the right over his handling of the pandemic, among other issues. (Kevin N. Hume/S.F. Examiner)
Why Gavin Newsom’s popularity could work against him in the recall election

Top pollster: ‘We’re not seeing the Democrats engaged in this election. And that may be a problem…’

Passengers ride the 14-Mission Muni bus on Friday, March 12, 2021. (Jordi Molina/Special to S.F. Examiner)
Transit officials fear Free Muni pilot could hurt already-strained service levels

Supporters say fare cuts could increase ridership, help low-income residents

The vacant property at 730 Stanyan St. in the Haight currently houses a safe sleeping site for the homeless. <ins>(Kevin N. Hume/S.F. Examiner)</ins>
Affordable housing project on former McDonald’s site delayed as city adds units

The start of construction on an affordable housing project on the site… Continue reading

Visitors read a notice hanging on the Polk Street entrance to City Hall on Thursday, March 26, 2020, shortly after the building was closed. (Kevin N. Hume/S.F. Examiner)
City Hall reopening to the public on June 7 after long closure due to COVID-19

San Francisco will reopen City Hall to the public on June 7… Continue reading

Historic streetcars are undergoing testing on The Embarcadero to prepare for their return to service on May 15.<ins></ins>
What to expect for Muni Metro’s relaunch on May 15

Significant service restoration includes downtown subway tunnels and historic streetcars

Most Read