Elk Grove planning commission rejects CNU hospital project, sends final vote to council

Planning commissioners dealt a massive Elk Grove hospital project its first rejection early Friday, sending California Northstate University’s proposed medical center to the city council without a positive recommendation.

Three of the planning commissioners unanimously agreed by a vote of 3-0 not to approve changes to the city’s general plan that would allow the proposed 400-bed medical center to be constructed in a 200-year flood plain. The five-member body denied a recommendation to approve an environmental impact statement and grant a variety of other entitlements, zoning amendments and permits.

California Northstate wants to build a 13-story hospital tower east of Interstate 5, an outpatient clinic, a student dorm and two parking garages. The facilities would neighbor the Stone Lakes National Wildlife Refuge and residential communities in the city’s southwest corner. The project is estimated to cost as much as $750 million.

“We respectfully disagree with the Planning Commission’s decision to reject its own staff recommendation, but appreciated the robust public discussion and look forward to the upcoming hearing before the City Council,” said Brian Holloway, a spokesman for California Northstate.

As expected, the meeting Thursday evening lasted for several hours as residents lobbed pointed remarks toward the school and the developers tried to ease their concerns. The project generated the most concern among environmental groups and in the Stonelake community, which has close to 1,500 homes surrounded by the preserve.

Planning commissioners did not vote until after midnight.

Two planning commissioners recused themselves from the decision because of potential conflicts. Andrew Shuck did not attend because he has close family in the affected area and Tony Lin chose not to attend because California Northstate supports an organization where he volunteers.

Debate over completion date for construction

California Northstate has long said the building will be constructed by 2022, a target that many found unrealistic. During the meeting, Allen Warren, whose company New Faze Development is a consultant for the project, said they were unlikely to meet that goal and that it was more aspirational.

Warren said the projected completion date would be 30 months from the day they receive final approval from the city, noting that state regulators must also sign off on the project.

Planning commissioner Mackenzie Wieser noted that there were inconsistencies between what was told to the community and the truth.

“I’m not sure based upon the volume of calls that came in tonight that the community outreach and engagement was done in the proper manner at the beginning, middle or end of this project,” Wieser said.

“It seems as if CNU has a bold and audacious and aspirational goal that they are trying to achieve, and I applaud that. However, it’s very pertinent that when you’re trying to build trust in the community and those around you and become a good neighbor, you be as transparent as humanly possible.”

‘CNU didn’t meet with the community’

Although the meeting marked the school’s first public rejection, the community had rebuffed the idea a long time ago.

When the project was announced, protesters from a newly formed group called Neighbors Ensuring Stonelake Transparency stood outside the school’s campus. Tenants in the Stonelake Landing shopping center who would be displaced by the hospital said California Northstate hid its true intentions when it purchased the struggling retail center.

Residents became increasingly skeptical of their claims as the university sent direct mail to homes in an attempt to boost support for the project. The latest misstep came last month after a University of the Pacific economist cast doubt on the findings in an economic impact study authored by Varshney and Associates for the hospital project.

“CNU didn’t conduct a listening tour. CNU didn’t meet with the community. They went out and told the community what they were doing — take it or leave it,” Jake Rambo, president of the Stonelake Homeowners Association, said during the meeting.

“For over a year there has been a standing invitation from the (homeowners association) — CNU’s closest neighbor — to meet with us to discuss mitigation and options for improving this project. To date, CNU has never met with our association. Instead, they have offered to have a press officer come and give us a presentation to explain why our concerns are not valid.”