Santee Partners would spend $15.9 million to buy the land near Edgemoor Hospital. The firm, which outbid a handful of competitors at a county auction this week, would pay $100,000 for a one-year option on the land. Pending city council approval of the firm's development plans, Santee Partners would buy the land from San Diego County.

The property has been appraised at $5.8 million. County officials plan to rebuild Edgemoor Hospital on adjacent land and will use proceeds from the sale, other with other redevelopment funds, to help offset the cost.

Santee rezoned the 21 acres to allow seven to 14 dwellings per acre, up from two to seven, plus an undetermined amount of commercial development. Santee Partners is also involved in plans to develop a parcel in downtown El Cajon.