City of Palo Alto gives green light to rebuild, expand Stanford hospitals

The Palo Alto City Council on Monday voted unanimously to certify the final environmental impact report (FEIR), grant land use approvals and execute a Development Agreement with Stanford Hospital & Clinics, Lucile Packard Children's Hospital and Stanford University, including a $175 million community benefits package as part of the renewal project. These approvals pave the way for a historic investment in modern medical facilities at the Stanford University Medical Center and come after four years and nearly 100 public meetings.

"We are very grateful for the city council's decision and thank them for their support and collaboration during this process," said Christopher G. Dawes, president and CEO of Lucile Packard Children's Hospital. "This project is critical for us to continue to serve our community needs and will enable us to provide the most advanced treatments and breakthroughs to our patients – including the children and expectant mothers who rely on us for care."

The renewal project will rebuild Stanford Hospital and expand Packard Children's Hospital to assure adequate capacity, meet state-mandated earthquake safety standards, and provide modern, technologically advanced hospital facilities. The project also includes replacement of outdated laboratory facilities at the Stanford School of Medicine and remodeling of Hoover Pavilion.

The Palo Alto City Council's certification of the final environmental impact report – a comprehensive evaluation of all environmental impacts of the project – and decision to approve the land use changes, permits and development agreement complete the legislative actions needed for the renewal project. Future grading, building and other permits will be reviewed by the city's public works and planning department, along with the Office of Statewide Health Planning and Development (OSHPD).

"Our vision is to heal humanity through science and compassion, one patient at a time," said Stanford Hospital President and CEO Amir Dan Rubin. "These new facilities will ensure that we can fully achieve that transformative potential. We are grateful to all involved in the extensive community dialogue that has occurred over the past four years."

Part of the development agreement includes a comprehensive and generous benefits package that will be directed towards several community initiatives, including: $12 million for projects and programs that address climate change and sustainability; $23.2 million to support infrastructure, and sustainable neighborhoods and communities in Palo Alto; and $4 million for community health and safety programs in the city.

Pursuant to the development agreement, $18.1 million in funds will be paid to the city of Palo Alto within 45 days of project approval. In addition, the medical center will provide $3.35 million for pedestrian and roadway improvements in order to better link the Palo Alto Transit Station to El Camino Real, Quarry and Welch roads.

Two further payments of $11.7 million each will be made when the first foundation permit is issued and upon occupancy of the first completed hospital building. Other benefits include substantial funding of transportation measures, including $91 million in Caltrain Go Passes for new and current medical center employees in order to offset peak-hour trips for the next 51 years. The renewal project is estimated to provide $18 million in taxes and fees to the city as a result of the construction, as well as provide an estimated 2,243 new jobs by 2025.

In order to address potential traffic concerns, the medical center has agreed to provide the city of Menlo Park with $3.7 million to be used towards the traffic impact fee and other programs that directly or indirectly lessen the impact of future traffic.

Highlights of the project include:

Enlarged emergency department that serves both hospitals

Additional 144 patient beds at Stanford Hospital & Clinics and 104 patient beds at Lucile Packard Children's Hospital

Improved patient safety, privacy and comfort through individual patient rooms

Increased space for families to be with their children during treatment and recovery

New surgical, diagnostic and treatment rooms at both hospitals

Timely compliance with seismic safety regulations and other code requirements

The hospitals expect to begin utility improvements and related work in July 2011. Construction of the new facilities will take about six years.

For more information on the renewal project, please visit www.stanfordpackard.org