Modesto City Council Approves $880M Bond Issuance for Kaiser Permanente Projects

Modesto City Council has approved the issuance of $162 million in tax-exempt bonds to support the construction of a new 105,000 square-foot medical office for Kaiser Permanente, a significant step towards enhancing healthcare facilities in the region. This decision was made during a public hearing on July 22, 2025, as part of a larger $880 million bond issuance coordinated by the California Statewide Communities Development Authority (CSCDA).

The bonds will finance various capital projects at Kaiser Permanente facilities across California, with Modesto's allocation specifically aimed at improving local healthcare access. The public hearing was a necessary step under federal tax law, allowing community members to voice any concerns regarding the financing. However, no public objections were raised during the meeting.

Deanna Christiansen, the city’s finance director, emphasized that the city would bear no financial responsibility for the bonds, which are solely the obligation of Kaiser Permanente. This arrangement allows the city to facilitate the funding process without incurring any liability.

Kaiser representatives confirmed that construction is ahead of schedule, with the new medical office expected to open in February 2026, earlier than the initially projected spring/summer timeline. The project is being managed by Swinerton, a construction firm, which is collaborating with local contractors to ensure community involvement in the development.

Council members expressed their support for the project, highlighting its potential to improve health services in Modesto. The approval of these bonds marks a significant investment in the city’s healthcare infrastructure, reflecting a commitment to enhancing community health and well-being.