California Northstate halts 400-bed Elk Grove hospital project to ‘consider all options’

California Northstate University halted its plans to build a medical center on the west side of Elk Grove this week — only days after the project was rejected by the city’s planning commission.

A spokesperson for the school said in a prepared statement Friday that the developers were reevaluating the project, which would have included a 13-story hospital tower east of Interstate 5, an outpatient clinic, a student dorm, two parking garages and a helicopter pad to support trauma services.

“Following last week’s action by the City of Elk Grove Planning Commission, California Northstate University is pausing activity related to the approval process for its Elk Grove hospital project in order to fully consider all options going forward,” said Brian Holloway, a spokesperson for the project.

Three planning commissioners voted unanimously to recommend denial of the project while two other commissioners recused themselves for potential conflicts of interest. The medical center was not yet scheduled to come before the City Council where it would have faced similar odds.

Since the hospital plan was announced in December 2018, California Northstate moved aggressively to drum up support for the project.

University officials contributed heavily to the re-election campaigns of former Mayor Steve Ly who did not win a third bid for re-election. Developers for the project raised concerns about potential conflicts of interest on the City Council that ensured two lawmakers — council members Pat Hume and Darren Suen — would not vote on the project. And in recent weeks, the school sent mailers to homes that cited economic benefits for the city that have been disputed by an economist.

Many nearby residents and environmental groups, including the Sacramento Sierra Club, were opposed to the planned hospital’s location which would have neighbored the Stone Lakes National Wildlife Refuge.

A consultant from Ascent Environmental, which conducted the environmental impact review for the hospital project, suggested the school could consider at least three alternatives during the planning commission meeting last week.

The school could reduce the hospital’s size down to 280 beds, which would cut the hospital tower down by eight stories. Another alternative would move the hospital to the Lent Ranch Marketplace, a special planning area near the northwest corner of Kammerer Road and State Route 99, according to the presentation.

The final option would be to scrap the hospital project altogether.

This story was originally published February 26, 2021 at 10:43 AM.