7-8-2006
SPECIAL REPORT - HEALTHCARE QUARTERLY
Gig Harbor hospital may clear major hurdle
By Rodika Tollefson
A proposed hospital in Gig Harbor was set to clear a major roadblock at the end of June that had caused the project to be placed on hold previously by its developer, Franciscan Health Systems. The city of Gig Harbor Planning Commission recommended approving an amendment to a comprehensive land-use plan that would allow the property to be rezoned to business park, the only zone within the city that allows a hospital (as conditional use). City Council members considered the request at their June 12 meeting, with a vote expected at the July 10 meeting.

“That opens the door for them (FHS officials) to apply for rezone, conditional use permit and site plan review,” said city Community Development Director John Vodopich.

The city’s approval of the comprehensive plan amendment is the first step in getting the hospital project back on track, said Gale Robinette, Franciscan Health Systems spokesman.

“We are pretty excited about this because the project has been on hold for almost a year,” he said.

The delay was due to a traffic study commissioned by the city of Gig Harbor showing that even without the hospital, Gig Harbor North, where the property it located, has traffic congestion issues that will continue to get worse. The city required an Environmental Impact Statement (EIS) to be issued for the requested comprehensive plan amendments.

An Edmonds-based developer appealed the EIS, which was issued earlier this spring. The developer has since withdrawn the appeal, following negotiations with the city over traffic issues related to his projects, according to city staff. The appeal filing has not caused any further delays to the project, Robinette said.

“We are starting to feel pretty encouraged and positive right now because the project … is now starting to get traction,” he said.

Franciscan has reassembled its design team, and hopes to complete the zoning and permitting process by the end of the year. If everything moves forward according to the new plan, construction could start by early next year, with a two-year construction timeline, for the 80-bed state of the art facility.

The organization is also asking for the city to sign a development agreement, which is common practice with projects of this nature, according to Robinette. In addition, the city will use a dedicated project manager for the hospital project who will be paid by Franciscan to work on site.

The city, in the meantime, is moving forward with a Hospital Benefit Zone, following the approval by the state Legislature of Tax Increment Financing. The new law allows the city to use a portion of sales tax within a determined zone for repayment of bonds to improve roads and infrastructure. A proposal is expected to come to Gig Harbor City Council members on the boundaries of the zone in a few months. The year 2007 will be used as the baseline year in estimating future sales tax revenues. The TIF could provide the city with a long-term fix to the traffic problems.

For the short term, the city may also get some help. Gig Harbor recently became a finalist for a $5 million state grant from the Community Economic Revitalization Board, part of the state Department of Community Trade and Economic Development. Gig Harbor was one of 13 grant recipients from 62 applicants. The grant would be used on roads and other infrastructure improvements in the Gig Harbor North area. The state Legislature must approve the list and appropriate funding for the projects in 2007.

“We will coordinate the near-term improvements with the long-term plans,” said City Administrator Mark Hoppen. Asked about his view on the hospital project status, he said: “Things are going on in a relatively expected manner. At the moment, it appears to move successfully.”.