City Council approves land use plan for new Northstate hospital in North Natomas

City Council approves land use plan for new Northstate hospital in North Natomas

Sacramento (Feb. 15, 2022) The Sacramento City Council Tuesday unanimously approved planning entitlements for a new teaching hospital and medical school planned for the site of the former Sleep Train arena in North Natomas.

The California Northstate University Medical Campus and adjacent development are projected to create about 8,000 jobs over the next 10 years. Eventually covering 183 acres, the development would also include a medical school, housing, a variety of supporting services such as commercial and retail uses, medical offices, a school, a childcare center and a care facility for active seniors.

A park would include a nature park and a class one bikeway. California Northstate has reached agreement with the Sacramento-Sierra Building & Construction Trades Council to build the project with local union labor. Ten percent of the housing would be affordable.

Dr. Alvin Cheung, president and CEO of California Northstate University, said the hospital would treat Medi-Cal patients at the same rate as other local hospitals. The project is privately financed so far, though the City may be asked to participate through an enhanced infrastructure financing agreement like the one used in Aggie Square. EIFDs capture growth in property tax from development to help finance infrastructure and affordable housing.

The project was spearheaded by Vice Mayor Angelique Ashby, in coordination with the Sacramento Kings. Numerous North Natomas residents called in Tuesday to support approval of the project, which would bring a jobs center to the place where the former Kings arena has sat empty for 10 years.

“I want to thank my community,” Ashby said during Tuesday night’s discussion. “All I did was be very stubborn about what I thought my community wanted. I refused to cave to anything lesser.”

The Kings donated 30 acres for the hospital development.

“This was a promise made and now it’s a promise kept,” Mayor Steinberg said before the vote.

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