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11/29/2007: "31 Million -Or More- For A Hospital"

(Red line shows property currently owned, the blue line shows various properties that need to be purchased or acquired - Note: "P" is parking, "S&R" is Shipping & Receiving)

Approximately 40 people showed up on Wednesday night to hear a presentation on the costs of two options that were presented as a part of an ongoing study to build a hospital on San Juan island.

Option-1: would convert the existing medical center into a hospital and build a new “occupancy space” and a new clinic.
Option-2: constructing a 30,000 square foot hospital, while sprucing up the existing 10,000 square foot medical clinic to complement the look of the new hospital.

Option one would upgrade the clinic to a hospital, with a total estimated project cost of $33,956,143.
Option two would leave the clinic as is, and build a new hospital. Total cost is estimate to be $31,283,339.

And for additional quarter million dollars a helo pad could be provided on the roof, or on the grounds of the new site.



In any case, more land is needed for either of the two options. It was estimated that at least five acres is required, and even that is “tight”.

in both of the options the proposed hospital would have 5 beds (with provision for an additional 5); up to two operating rooms; a Cat Scan and up to two or four examining rooms.

The recommendation from the consultant is Option 2. The break down of the costs are as follows:

* Land purchase$ 4,718,640 (assumes land is for sale, and be purchased for twice the assessed value)
* Building Construction Costs $13,882,125
* So called “Soft Costs” $ 3,087,602
* Entitlements $ 165,000
* Equipment & Other $ 6,250,000
* And of course Tax $ 1,791,759
* Plus a Contingency of $ 1,388,212

But are any of these costs realistic for construction on San Juan Island? The study used a base square foot estimate of $375 per square foot, but admitted that while that was the number being used for a current project on the mainland, the contractor on that job had expressed concern it was much too low. The consultant said that the norm in California is twice that number.

After the meeting we asked two businessmen who have extensive experience in commercial construction, and were told they believed that when all was said and done, the costs could be nearly double of the current estimates

Given the potential for objections to such a large development (not to mention the heliport idea) in the town, questions have been raised as to the intent of the study.

Have the two options simply been made to show the current site is not practical for development -or not even possible- if the private property needed for the expansion cannot be acquired by purchase or condemnation? And if so, is the goal to build a new facility outside of town; perhaps on airport property?

Questions from the public were not allowed at the meeting, so additional information could not be obtained. While the published report was not made available to the public, the Island Guardian has learned that the consultant is currently conducing further studies for Option 2, with an emphasis on evaluating the pros and cons of a two or three story structure that is attached, or detached from the existing clinic.

There was no announcement as to when a new report will be completed, or when -and if- it will be made available to the public; or when the subject will be taken up again.