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Citrus Heights Messenger

Dignity Health Finally Breaks Ground on Medical Complex, Eyes 2019 Opening

May 24, 2017 12:00AM ● By Story and Photo by Jacqueline Fox

Officials break ground on new Dignity Health Mercy Medical Group office building in Citrus Heights. From left are Citrus Heights City Manager Chris Boyd, Alan Shatzel, DO, Incoming CEO Mercy Medical Group, Inc., Sister Bridget McCarthy, vice president, Mission Integration, Dignity Health, Sigrid Owyang, vice president, operations, Dignity Health Medical Foundation, Michael Korpiel, Interim CEO, Mercy San Juan Medical Center and Citrus Heights Mayor, Jeff Slowey.

Dignity Health Finally Breaks Ground on Medical Complex, Eyes 2019 Opening [2 Images] Click Any Image To Expand

After nearly two years of delays involving legal challenges, financing issues and wet weather, the first of a multi-phase construction plan for Dignity Health’s three-story medical complex at Greenback Lane and Fountain Square Drive is underway.

Groundbreaking for Dignity Health’s long-anticipated, 68,000-square-foot medical building took place Monday, paving the way for the first phase of construction for the project on the former city hall site, which has been sitting vacant since the old structure was demolished in 2015.

“We are all very excited and thrilled to finally be able to bring this terrific project forward,” said Dignity Health Spokeswoman, Brooke Burgess just prior to the groundbreaking ceremony.

According to Burgess, the new medical professional building will offer a range of primary and specialty care services delivered by a team of roughly 50 medical providers and an additional 120 support personnel. Those services will include primary care, pediatrics, family medicine and dermatology, Burgess said.

In addition to the jobs being created and the addition of critical medical care services, the project is being widely lauded as the first of what are likely more efforts by officials to attract a mix of new businesses to the city, which some agree is too reliant on retail, a sector of the economy struggling to compete against the fast-paced growth of online retailers, as well as large, outdoor retail “experience” malls, offering a mix of shops, eateries, cinemas and community gathering space.

“This is a very important project for the city, not only because of the great services it will bring in and the jobs being created here in Citrus Heights, but also because it will contribute a great deal to our plans to diversify our economy,” said Monica Alejandrez, assistant to the city manager. “We are retail heavy here and this new project is going to be a very beneficial addition to our city.”

The Dignity Health complex is part of what began as a hotly-contested $53.2 million project approved by the city in spring of 2015 that included demolition of the old city hall complex and construction of a new one, which now sits a block away and directly across the street from the Citrus Heights Police Department. Although challenged by at least one law suit initially, the Dignity Health project carries a $7 million lease agreement with Dignity Health for the vacant site. Those funds, city officials have said, are intended to be used to help offset the costs for construction of the new city hall complex.

So far, however, the city has received only a $1 million “good faith” payment from Dignity Health, as well as another roughly $1 million to cover costs associated with the demolition of the old city hall complex, Alejandrez said. Once in place, consistent payments from Dignity Health will start to flow.

There were initial delays on the project, due to at least one law suit challenging its environmental impact on the site and community, including traffic and congestion concerns. Although legal challenges have been settled and the project has been cleared to go for months, Alejandrez said the company incurred further setbacks after several failed attempts to secure financing for construction. Dignity Health has since made the decision to pay for the project out of its own pocket, but groundbreaking plans have been further delayed due to protracted wet weather this past winter, she said.

“It’s been a combination of weather and Dignity Health’s ability to obtain its financing,” said Alejandrez. “Now they have decided to just finance the project themselves, so there are no more hold ups.”

The project build will take place in three phases over the next two years, beginning with initial construction, which is expected to take a minimum of one year, followed by six months of what Burgess described as “tenant improvements,” and another six months after that to complete interior infrastructure-related components. All told, roughly four years will have passed between demolition of the old city hall and Dignity Health’s grand opening.

“We are anticipating we will see the doors open to the new building some time in spring of 2019,” said Burgess. “We are moving on a project that is going to take time for all phases to be completed, but it will ultimately be a significant addition to the community of Citrus Heights.”

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