News Release News Release The City of Palo Alto
Communications Department
250 Hamilton Ave
Palo Alto, CA 94301


PRESS RELEASE 06/16/2009
Subject :

City Welcomes Stanford Medical Center Development Agreement Proposal
Contact : Steve Emslie, Deputy City Manager    650-329-2354
Palo Alto, CA - Today Stanford Hospital and Clinics along with the Lucile Packard Children's Hospital presented a proposal to the City of Palo Alto to be used in our joint negotiation of a Development Agreement to permit and guide the seismic retrofitting and expansion of the hospitals over the next 30 years. Because of the scale of the hospitals’ expansion needs, and the long term vesting of entitlements that is one of the core purposes of a Development Agreement, great care needs to be taken in the development of such an agreement, for the mutual benefit of the hospitals, the community, and the City. The Hospitals’ $3.5 billion spending plan will add approximately 1.3 million square feet and an additional 2,300 employees, and increase patient beds at Stanford Hospital from 456 to 600 and Lucile Packard from 257 to 361. The proposal, submitted by letter dated June 15 to City Manager James Keene, identifies mitigations for traffic, affordable housing, community health programs and urban design improvements. Stanford University values the proposal at $142 million which includes payments to the School District and a range of subsidy programs. 

"The value and importance of Stanford Hospital and Clinics and Lucille Packard Children’s Hospital to Palo Alto and, indeed, the wider world, is unquestioned,“ said Mayor Peter Drekmeier. “The needs of the hospitals and our community are intertwined. The City has jurisdiction over the hospital projects, but I am concerned about plans for significant campus wide expansion beyond the city’s direct review that somehow need to be taken into account." 

“The proposal is an excellent beginning to our Development Agreement negotiations and shows that Stanford has been listening to concerns raised by the City Council and the community,” said James Keene, Palo Alto City Manager. “We all have a lot of work to do together over the summer to negotiate the agreements necessary to move this important project forward. The proposal lays a foundation for productive conversations between the City and the University.”

 The City is currently working to finalize the Draft Environmental Impact Report (EIR) for the Medical Center Renewal Project and is expected to release the draft later this fall. The University’s decision last month to withdraw the shopping center expansion required the City to re-write much of the draft document because both projects were originally included in the same EIR (extending the completion of the EIR). Circulation of the EIR for public review and comment is required prior to the City’s action on the project. As a result, adoption of the final Development Agreement and EIR will not be accomplished until early 2010.