Council to Negotiate Development of Former Kaiser Permanente Site in Special Session

The Pasadena City Council will convene a special closed session Monday to negotiate with potential developers for the long-vacant Kaiser Permanente property on North Lake Avenue at Villa Street, marking a major step toward transforming the site into a mixed-use development.

The April 28 meeting at 4 p.m. in Pasadena City Hall will primarily focus on price and payment terms for the 2.38-acre property at 434-470 North Lake Avenue. City Manager Miguel Márquez is scheduled to lead negotiations with 12 development organizations, including both nonprofit affordable housing developers and for-profit mixed-use specialists.

The City purchased the property in late 2023 using a congressional stimulus funds allocation of up to $12 million, and declared it “surplus property” in July 2024 under the State Surplus Land Act, paving the way for redevelopment.

Among the negotiating parties are prominent affordable housing developers Bridge Housing, LA Family Housing, and Mercy Housing, alongside for-profit firms such as City Ventures, The Olson Company, and Cypress Equity Investments.

The former medical office building, constructed in 1977, has sat unused for over a decade. Future development plans must align with the North Lake Specific Plan, which requires housing, at least 15,000 square feet of office space, and neighborhood-serving retail.

In a separate agenda item, the Council will also consider initiating litigation in one potential case, but details were not disclosed in the meeting notice.

The City has engaged residents about the property’s future through community meetings, including one held in March 2025.