Jilted by Elk Grove, California Northstate teaching hospital may land in Rancho Cordova

After being rejected in Elk Grove, California Northstate University is negotiating with city officials in Rancho Cordova about building a new teaching hospital there, officials said Wednesday.

The for-profit college opened its first campus in Rancho Cordova in 2008 but has not yet determined the scale or location of the teaching hospital it now wants to build in the city. California Northstate operates medical, pharmacy, dental and psychology schools.

In a prepared statement on Wednesday, the city of Rancho Cordova said they had just started to evaluate the idea and that a hospital is a “much-desired community asset” that could bring thousands of jobs and other benefits to the region.

“Building a hospital in Rancho Cordova has long been a desire of the City Council, and we are excited to be exploring that possibility with California Northstate University,” Rancho Cordova Mayor Garrett Gatewood said.

For more than two years, California Northstate planned to build a 400-bed medical complex in Elk Grove next to another CNU campus. The plans came to include 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.

Estimated to cost $750 million, the facilities would have neighbored the Stone Lakes National Wildlife Refuge and residential communities in the city’s southwest corner. The project faced early opposition from residents and environmental groups who contested the location.

‘A catalyst for further regional growth and innovation’

Last month, the Elk Grove Planning Commission issued a recommendation of denial to the City Council, signaling a potential defeat for the years-long effort. Days later, California Northstate officials said they were considering “all options” for the project.

Dr. Alvin Cheung, the school’s president and chief executive, said other communities expressed interest in the meantime.

“We are gratified that a number of jurisdictions reached out to CNU representatives, recognizing the stature of the proposed teaching hospital for our region,” Cheung said in a prepared statement. “It is equally gratifying to feel included in the community and in the process.”

A spokesperson for the school did not say whether talks in Rancho Cordova put an end to their plans in Elk Grove.

The potential development in Rancho Cordova was greeted warmly by some in the business community. The original project already counted the Greater Sacramento Economic Council and various building trade groups, among its supporters. The Sacramento Region Business Association added its name to the list Wednesday.

“Region Business supports the proposed CNU Medical Center in the City of Rancho Cordova we believe that it will provide thousands of high-wage jobs, improve public health, and provide key educational opportunities for medical professionals for decades to come, said Lisa Nicolls, president of the organization’s board.

“We look forward to seeing this project come to fruition and act as a catalyst for further regional growth and innovation.”

This story was originally published March 10, 2021 at 12:49 PM.