Developers of the proposed Las Soleras project on Santa Fe's southwestern fringe are seeking clearance to include a five-story hospital along with a hotel and business park.

Presbyterian HealthCare Services, a nonprofit company that owns eight hospitals in New Mexico, has signed a $15 million purchase agreement for 40 acres with The Crossing LLC, an Albuquerque-based developer.

While the proposal could mean eventual construction of a hospital the size of St. Vincent Regional Medical Center, Presbyterian spokesman Todd Sandman said not to expect a hospital to rise on the horizon anytime soon.

"We have no plans right now for a facility of this size or any other facility," said Sandman, who characterized the deal as part of a long-range plan.

A 157-acre project called The Crossing, near the existing Santa Fe Outlets mall, is part of an area between Interstate 25 and Cerrillos Road that has been a source of contention between the city and county officials over control of Santa Fe's southern sprawl. The county has successfully resisted a City Council initiative to annex land in the area.

John Mahoney, president of JJ Mahoney and Associates and spokesman for the commercial real estate developer, could not be reached for comment Thursday.

On Aug. 30, the developers will seek approval from the Extraterritorial Zoning Authority -- a joint city-county body dominated by county officials -- for a five-story hospital
(85 feet high). The county's building-height limit for that area near the highway is 36 feet.

The developers also seek approval for a "luxury hotel" and conference center as well as a "business park/medical office park," both with a height of 45 feet, which would exceed the county's existing limits.

The Extraterritorial Zoning Authority is scheduled to hold a public meeting on the matter at 6 p.m. Thursday in the Santa Fe County Commission Chambers.

"Our recommendation supports their variance request," said Shelley Cobau, Santa Fe County's development review division director.

But, she added, "it's going to be up to the zoning authority."

The intent of the county's height limit is to keep the views near the highways open. The developers say they can drop the proposed hospital down into the terrain so that it doesn't stick out so much. They argue a horizontal hospital would be less efficient.

No developer has been allowed to build above the current height restriction, according to a county memorandum about The Crossing Master Plan.

Following the zoning authority's decision, the project is expected to go through the county's development planning process, which includes a series of public hearings.

Though no designs have been drawn up for a hospital, the developers seek approval for a 400,000-square-foot facility with a helicopter pad. If all the clearances go through, Sandman said, Presbyterian will complete the land purchase.

"The more we know about what the county would favor," he said, "then we'd be inclined to go through and finalize the agreement."

But Sandman emphasized construction is expected to be many years away.

"Our analysis is that right now a second hospital wouldn't be well served," he said. "This is really about the future. If Santa Fe continues to grow, could it warrant a second hospital? I think St. Vincent is meeting the community need today."

Currently, Presbyterian's only stake in Northern New Mexico is Española Hospital.

St. Vincent Regional Medical Center, a private nonprofit, has long been Santa Fe's only general hospital. This spring, a surgical hospital opened, bringing unprecedented competition. Physicians Medical Center of Santa Fe is a 12-bed facility owned by some local physicians and a chain called National Surgical Hospitals.

"Of course, we have felt some impact, but we're doing fine as an organization," St. Vincent chief executive officer Alex Valdez said.

Should Presbyterian open a regional hospital here, the impact would be much greater financially because St. Vincent would no longer be the sole community hospital -- a designation that brings extra federal money to the hospital.

The threat isn't immediate, Valdez said, because Presbyterian officials have told him a move into Santa Fe would be
10 to 15 years away.

Valdez said he hopes Santa Fe wouldn't become another Las Cruces, where the number of hospital beds exceeds the number of patients and all institutions lose out.

"We have to make sure we do not end up with so much excess capacity that no one does well enough, ... and I know that's a concern of Presbyterian, and it's definitely a concern of mine," Valdez said. "Otherwise, we end up building white elephants."

Meanwhile, in addition to expanding its emergency department, St. Vincent is building a stronger presence on Santa Fe's growing south side. Adjacent to the Camino Entrada Pediatric Clinic, which will soon have radiology services, the hospital plans to open an urgent-care center this fall.

And in an effort to retain a good staff, the hospital now has 44 doctors on staff, compared with 10 doctors two years ago, Valdez said.

"We are continuing to work to expand our service delivery, not only in the hospital but also outside of the hospital -- and we will continue to do that," he said.

Sandman said what Presbyterian did in Rio Rancho is similar to what could happen in Santa Fe. Over a 20-year period, it purchased land, opened primary-care clinics and a standalone emergency department. In 2010, Presbyterian plans to open a 100-bed hospital in Rio Rancho.

Contact Diana Del Mauro at 986-3066 or dianadm@sfnewmexican.com.