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PRIORITY ISSUE: Facilitate the Development of a Hospital in Eugene's Central Core <br />Contact: Dennis Taylor, City Manager, 682-5336 <br />Susan Muir, Staff Lead, 682-6077 <br />Reporting period: October -December 2005 <br />Initial City Council discussions about hospital expansion and siting in conjunction with PeaceHealth <br />took place in 2001. Since that time, the City Council has taken several actions designed to encourage a <br />hospital to locate in the City's central core. McKenzie-Willamette Medical Center initially indicated <br />interest in locating on the Eugene Water and Electric Board (EWEB) site, which would be within the <br />council-approved incentive zone for hospital development. At the time the original action plan was <br />developed, the two entities signed an agreement stating that EWEB intended to sell its downtown <br />property to McKenzie-Willamette, contingent upon each entity completing due diligence on relocation <br />issues. <br />OUTCOMES <br />• McKenzie-Willamette Medical Center chooses a location for its new facility within the City's <br />central core. <br />Land use actions are successfully completed, including possible annexation, Metro Plan <br />amendment, and zone change. <br />McKenzie-Willamette designs and constructs a new medical center. <br />• The City designs and constructs any agreed-upon infrastructure improvements. <br />PROGRESS SINCE LAST REPORT <br />Although control over the decision about where to locate a private hospital facility does not belong to <br />the City of Eugene, staff has worked diligently to accomplish this priority action plan goal. When it <br />appeared that the EWEB site would not work for a hospital location, the council unanimously passed a <br />motion directing the City Manager to immediately begin a swift, high-priority initiative to pursue a <br />signable purchase option on PeaceHealth property and that of other property owners in the vicinity of <br />12~' Avenue and Willamette Street. <br />Staff work on the 12`i' Avenue and Willamette Street site included meeting with officials from <br />McKenzie-Willamette and PeaceHealth, both separately and jointly, to determine if the Eugene <br />Clinic site was a feasible option. The key issues or problem areas raised by McKenzie-Willamette <br />about that site included cost, timing and site size. PeaceHealth indicated no desire to sell the site <br />because its status as surplus property had not yet been determined. The three CEOs wrote a letter <br />to City Council explaining the results of the meetings. <br />Recently, McKenzie-Willamette announced a purchase agreement for a portion of the Riveridge golf <br />course, which is not within the desired central core area. On November 15, 2005, McKenzie- <br />Willamette CEO Roy Orr sent a letter to the City Manager requesting assistance with certain issues <br />related to zoning, regulatory reviews, siting, utilities, transportation and fees, and charges. On <br />November 21, City Manager Taylor provided a response to Mr. Orr with the results of the initial staff <br />investigation into the issues raised in his November 151etter. <br />A City Council meeting was held on November 28 to discuss the new Eugene hospital site at Delta <br />Ridge. At that meeting, the council passed a motion directing the City Manager to: <br />-5- <br />