Sutter Community Project Faces Lawsuit

13 January 2006

SACRAMENTO, Calif., Jan. 10 -- A lawsuit filed Friday, Jan. 6, in Sacramento Superior Court by the Service Employees International Union seeks to delay the Sutter Medical Center community redevelopment project, which was approved last month on a 9-0 vote by the Sacramento City Council, and unanimous votes by the city's Planning Commission and Design and Review Preservation Board.

The project includes renovation of Sutter General Hospital and Sutter Cancer Center, construction of a new Anderson Lucchetti Women's and Children's Center, new medical office buildings, 32 new homes, a live production theatre complex for B Street Theatre and Children's Theatre of California, a new Trinity Cathedral, a community parking garage and neighborhood-serving retail and restaurants.

The first phase of construction includes the 32 new housing units and community parking garage, which would serve Trinity Cathedral, Children's Theatre of California and local businesses, as well as the medical center. This phase of construction will be the first impacted by any delay resulting from the lawsuit.

"While we have not yet seen the lawsuit, it clearly is not motivated by a concern for the community," said Tom Gagen, chief executive officer of Sutter Medical Center Sacramento. "This broadly supported and thoroughly studied project will enable us to dramatically improve the quality of health care for Sacramento and the surrounding region, and provides a huge economic boost to the city. It would be very unfortunate for patients and our residents if this project is delayed."

The project earned significant support from community leaders, neighbors, patients, physicians and employees throughout the five-year collaborative planning process. After extensive study and analysis of the project's environmental impacts by city staff, it was unanimously supported by Sacramento's Design Review and Historic Preservation Board and Planning Commission prior to the City Council's unanimous approval on Dec. 6.

"We worked closely with the neighborhood on all aspects of design for this project, which will provide a wide range of benefits for the Midtown area. A delay in moving forward would be very disappointing," said Mark Friedman, president of Fulcrum Property Corp. and a partner in LoftWorks, which is developing the housing component of the project. "I'm also deeply disappointed that the union would seek to hold up this project to obtain leverage in a labor dispute."

Every month of delay for the project could add $3.5 million to the project's budget, currently projected at $456 million for the medical facilities. The project is a national model for infill development and will have an estimated annual economic impact of $1.5 billion in Sacramento. It is designed so that the new Sutter Medical Center can effectively serve the greater Sacramento region's health care needs for the next 50 years.

"This is a great project that was approved unanimously by the City Council after several years of review and community input. Seeking a delay in its construction only harms the patients, residents and visitors who will benefit from it," said Bernard Bowler, former chair of the Sacramento Metropolitan Chamber of Commerce and retired IBM executive.

CONTACT: Nancy Turner

916-454-6569

Source: prnewswire

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