While most people agree Lakeview Hospital is an asset the community can't afford to lose, debate has begun over how the hospital can continue to grow in an already congested residential neighborhood.

A decision regarding the fate of a certain aspect of the hospital's expansion plans was moved to the Oct. 21 Stillwater City Council meeting as members look to create an ordinance amendment that, they hope, will meet the needs of both the hospital and its neighbors.

The council on Tuesday directed City Attorney David Magnuson to draft an ordinance amendment to allow special use permits to extend beyond their current two-year limit; permits would also be tied to development agreements, listing specific targets for the project. If passed, the amendment would not only affect the current hospital plans, but all future large projects that would come before the council.

The council hopes the amendment will give the hospital some assurance that its expansion process won't be put on hold due to a decision from a future council, while still allowing the public to share its concerns as the project moves forward.

Stillwater City Administrator Larry Hansen said this morning the council did a similar deal with the construction of the Washington County Government Center and noted a two-year time limit on large construction projects is sometimes an unrealistic expectation.

Hospital officials say the first two phases of its expansion will take around seven years to complete. Jeff Robertson, CEO of Lakeview Health System, told the council it is difficult for his organization to plan ahead without assurance from the council that the expansion process will get its blessing come the end of the special use permit.

When asked how he felt about the possibility of the city not passing the ordinance amendment, Robertson told the council, "With all due respect, it is unacceptable to us."

Still, the hospital has a long history of working successfully with the city. Councilman Rob Gag asked Robertson how many times the city has denied or not granted a request from the hospital.

"None, and I appreciate that," Robertson said.

Gag said it is always a better outcome when projects are able to go through Stillwater's planning process and that the city already has a "solid process" in place.

In September, the planning commission unanimously recommend the council not grant the ordinance amendment while city staff and the city attorney recommended the council allow the extension, saying it would be best to approve the longer time period to complete the project.

Councilman Adam Nyberg worried what "can of worms" the council would be opening if they passed the amendment, as there are at least four other large undeveloped parcels in the city limits, which an ordinance amendment could affect in the future.

Some argue the hospital should consider one of those locations.

Former Stillwater Mayor Charles Hooley lives across the street from the hospital on the 900 block of Greeley Street South and said he would like to see the hospital stay in the city, but move to a different location. He said the current hospital is "boxed in" and there is no room for future growth.

Local resident Art Palmer agreed.

"Why are you trying to cram more people and more cars into the smallest area in town?" he asked the council.

Yet it appears relocating isn't much of an option for the hospital.

"It would be economically devastating if we relocated," Robertson said.

Hooley, who was mayor from 1993-94, also aired several of his ideas and concerns about the possible expansion. He told the council if the hospital were to expand, it would reduce property values in the neighborhood between 25 to 35 percent. He later urged council members to conduct an environmental impact study on the expansion before they make any decisions, saying it's "the fair thing to do."

Hooley also presented the council a petition asking for an environmental impact study signed by about 50 residents.

Karen Hulstrand lives next to the hospital and told the council not to pass the amendment because she wanted to protect the neighborhood she has grown to love.

"We need to do everything we can to protect it," she said.