San Jose, Calif., Studies Uses of Former Medical Center
Jul. 16–The former San Jose Medical Center site could be converted into a retirement home and a separate health care clinic under a recommendation Friday by city officials who reviewed proposals for the hospital property.
But none of the half-dozen proposals included a viable plan for another hospital or 24-hour urgent care clinic. So, the four city officials and three independent experts who reviewed them alternatively recommended looking at other possible uses for the 13.5-acre site.
The San Jose City Council will consider the report and its recommendations at an Aug. 16 public meeting.
Friday’s report deflated many who still hold out hope of bringing another hospital downtown to replace San Jose Medical Center on East Santa Clara Street, which closed Dec. 9.
“It wouldn’t provide the urgent care presence we’d like, so we’re not happy,” said Rosylin Dean of the Save San Jose Medical Center Coalition, which plans to meet today to study the recommendations and prepare a formal response.
The city in March solicited proposals for health care services at the hospital site. The property is still owned by San Jose Medical Center’s corporate parent, HCA, which moved its trauma center operation to Regional Medical Center on McKee Road. HCA opposes another hospital at the downtown site that would compete with Regional.
The city ultimately received only six responses, and the evaluation team found just two viable. Among the responses:
–The group rejected a proposal by developer Barry Swenson to build market-rate housing with a small health care component, arguing the city’s request was for health services, not housing.
–The team also shelved a response from a group called Friends and Neighbors of Hospital Properties described as “a vision for community and academic partnerships on the site.”
–Silicon Valley Health Alliance’s proposal for medical and health care services “did not provide adequate financial capacity or proven track record.”
–Santa Clara County’s Health and Hospital System officials expressed interest in operating a clinic downtown, but only if the city acquired and developed a site for it.
The county’s proposal had its drawbacks. The city would have to acquire the property from HCA at considerable cost. The San Jose Redevelopment Agency had recently appraised it at $36 million. HCA and county officials said it would likely be more than that. Also, county officials indicated a downtown clinic is not high on their funding priorities list.
Holding out hope that either HCA or another company would some day build another hospital there would deprive both the city and HCA of income for years.
The proposals considered potentially viable included:
–A joint project by Pleasanton-based non-profit Cornerstone Affiliates, its subsidiary American Baptist Homes of the West and Greystone Communities of Texas for a continuing-care retirement community.
The retirement community would include as many as 275 independent apartments, 50 assisted-living units, 20 support suites and 45 skilled nursing beds. It would be built with up to $200 million in tax-exempt bonds. The applicants say the city would not have to contribute financially.
–A proposal by San Jose non-profit Gardner Family Health Network to relocate its St. James Health Center to about two or three acres of the hospital site. Gardner currently specializes in treating low-income residents, but indicated it could provide health care to the entire community.
Cornerstone and Gardner told city officials they could work together on a joint project if council members agree to pursue their respective proposals, according to the staff memorandum.
Victoria Emmons, spokeswoman for property owner HCA, said the hospital corporation would be interested in further talks about those proposals.
“We’d like to get fair market value for our land and work with the city to create an economically viable development,” Emmons said. “It’s expensive to maintain the old building, so we’re very anxious to move the process forward.”
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