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White Bird Clinic at 341 E. 12th is in the "blast zone."

Ultimatum
It's time for citizens to weigh in on Sacred Heart's options. Are there really only two?
By Alan Pittman

Sacred Heart Medical Center has asked that the city bulldoze six blocks of one of downtown's oldest neighborhoods and fork over $35 million in cash and other considerations.

If the City Council doesn't agree to the hospital's plans by July 9, the hospital intends to pull about 1,000 jobs from the city's struggling downtown and build a new hospital at the edge of the city. City officials and livability advocates fear the north Eugene site will promote urban sprawl and traffic congestion, and cost the city untold millions to serve with roads, sewers and other infrastructure.

"It seems awfully extortionist to me," says Rex Redmon, a downtown advocate with the community group Friends of Eugene (FoE). "It's very inappropriate for a non-profit organization that the community relies on to be beating us around the back of the head and twisting arms," he says. "That's very un-Christian."

City officials say they need quick citizen input to decide whether they should give in to the hospital's demands. A hearing will be held Monday, July 2 (see "How to Comment").

"Right now it's up to the community to let the council and the hospital know what they think," says Councilor Bonny Bettman.

But citizens have very little information on which to base their input. Big questions about the downtown and north Eugene plans and possible other better options remain unanswered. The key players engaged in weeks of secret negotiations around the hospital move -- City Manager Jim Johnson, the city's lead planner on the issue, Lew Bowers and Sacred Heart CEO Alan Yordy -- all either declined comment or did not return calls for this story.

What little public information there is has to filter through the spin of the hospital's PR person Brian Terrett and the city's PR person Tom Olshanski. Both are new to their jobs and say they don't know the answers to many questions.

Here's a run-down of some of the biggest unanswered questions.


Other options

How to Comment
The city is holding a "public forum" on the hospital issue at 6:30 pm Monday, July 2 at the Central Presbyterian Church at 1475 Ferry St.. It's unclear whether city councilors will attend, but city staff will take notes on what citizens say.

To comment, citizens may also call 682-5616, e-mail richie.d.weinman@ci.eugene.or.us or mail comments to Mayor and City Council, City of Eugene, 777 Pearl St., Eugene 97401.

One of the biggest questions about the downtown and north Eugene choices for siting the hospital is whether they are really the only two options.

Many downtown and livability advocates say the city and hospital should pursue using its Willamette Street campus (the former Eugene Clinic building) for expansion rather than demolishing the six blocks.

The hospital's plans currently call for the closure of the clinic site between Willamette and Olive streets as part of its move north. The current hospital site on Hilyard Street will house an out-patient clinic and administrative offices. Sacred Heart will move 2,200 employees north and build a new hospital on a farm field near Crescent Avenue and Coburg Road at the city's edge.

Creating a dual campus by expanding on the underused Willamette site "just seems like such the obvious answer for the hospital," says Sue Wolling, a Sacred Heart intensive care nurse who heads the Eugene Bicycle Coalition. Wolling says the Willamette site is only a block from the bus station, includes surface parking lots and is surrounded by single-story commercial uses that should be redeveloped to higher density. "You can't beat it," she says.

The hospital has almost two blocks of land at the Willamette campus. The city could provide additional land for expansion by condemning a couple more blocks of adjacent single-story commercial property. The city's old library site could also provide additional land if the city paid to revoke a sale contract for the property.

During negotiations with city officials, the hospital refused to consider the Willamette site as an option because it's not adjacent to the Hilyard campus, city officials say. "They took that off the table fairly rapidly," says Bettman.

But supporters of the Willamette option point out the site is only a few blocks from the Hilyard campus, a far shorter distance than the 4.1 miles out to the second campus the hospital is planning in north Eugene. The two downtown sites could be connected by a frequent shuttle bus service that could also serve downtown and the university area, supporters say.

Hospital spokesman Terrett says the hospital might consider the Willamette location if there's enough room for expansion. "We are continuing to keep an open mind," he says. But it's unclear whether Terrett expresses the views of Yordy and the hospital board in this matter. "I don't want to speculate" whether they would agree to a Willamette proposal, he says.

City spokesman Olshanski says city planning staff are now working on fleshing out the Willamette option and will present it to the hospital.

Another option dismissed by the hospital with little explanation is whether it could save much of the six-block neighborhood by building up instead of out.

"You could do the whole thing on three blocks if you went 12 stories," says Councilor David Kelly, who attended negotiations with the hospital.

But the hospital has asked that the city provide the same amount of vacant land downtown that it has on the edge of town for its 38-acre suburban design, city officials say.

Terrett says denser designs would cost the hospital more money.

Kelly points out that urban hospitals of 12 stories or more are not unusual in other cities. He notes the hospital's original expansion proposal last year called for building up on the hospital's current four-block site.

FoE board member Greg McLauchlan says forcing the suburban design into downtown Eugene would be a bad use of land in the city core. "We need to start building up and not out," he says. "We certainly don't want to duplicate the sprawl option and just put it downtown."

It's not even clear whether the hospital will actually use all of the 38 acres downtown within the next 50 years. Sacred Heart has called for the city to demolish enough blocks for the city to have room for 100 years of expansion. A first phase will take up about half of the area, but the rest could remain barren and vacant for decades, according to city officials.

Councilor Gary Rayor says it would be much better to phase tearing down the neighborhood rather than doing it all at once and leaving half of it as a vacant eyesore downtown. With the hospital's plan, Rayor says, "It will be sort of like a nuclear explosion in the center of downtown."


Bad Faith Bargaining
The hospital's demands downtown are so extreme that many have been left wondering whether Sacred Heart is bargaining with the city in good faith.

"They've intentionally made demands that are unreasonable," Redmon says. "It doesn't seem to me like they've been genuinely trying to find solutions."

Redmon suspects the hospital's demands and rush are just a PR move by the hospital to make moving to the north Eugene site look better. "I don't think they really had any intention but moving north," he says. "I feel like they've taken the dirty, slimy road."

Indeed, the hospital has asked that the city agree to support its move north if a tax measure to fund the $35 million subsidy fails.

"That suggests they went into the meetings with bad faith to start with," says Dr. Rich Coolman, a Eugene pediatrician.

Coolman says he met with Yordy recently and he appears unwilling to even consider a downtown site. "He did not feel like an urban hospital was compatible with his and the board's mission."

The suspicion that the hospital isn't an honest broker is widespread. Even some of the hospital's most ardent supporters say Sacred Heart's proposal may have an ulterior motive. "Images of bulldozers rumbling westward from Sacred Heart help make the north campus plan look good, which may have been one of PeaceHealth's goals in its negotiations with the city," The Register-Guard editorialized.

McLauchlan says Sacred Heart's unreasonable demands may be an effort to shift blame to the council for the hospital's leaving downtown.

Terrett does appear eager to shift any blame to city officials. He claims tearing down the six blocks and paying $35 million is the city's plan, not the hospital's. "It is the city's answer to our 100-year vision" for a bigger hospital, he says.

The hospital's demand that the city decide by July 9 so that a tax vote on its subsidy can occur in September also appears artificial, critics say.

"There's no question we're going to level six blocks with two weeks to talk about it," says Redmon. "That [deadline] is like telling the city, 'Go to Hell.'"

"What's the big rush?" Wolling asks. "If we're talking about a new hospital that is going to be serving the community for 75 to 100 years, why do we have to make a decision by July 9. This is crazy."

Terrett says the hospital is bargaining in good faith and claims that delaying the decision past September will cost Sacred Heart $300,000 a month in inflated construction costs.

Councilor Kelly says he thought hospital officials were "serious" at the private negotiation meetings he attended. Yordy and hospital planners and consultants were spending significant time looking at options, he says.

But at the recent council meeting to discuss the six-block proposal, only the hospital PR person, Terrett, was there to answer questions.  


Cost vs. Benefit
It's unclear whether avoiding sprawl on the edge of town is worth tearing down the six blocks and paying the $35 million.

Gary McNeel, the city's traffic operation's supervisor, says due to a lack of information from the hospital, the city hasn't been able to do a cost-benefit analysis comparing the downtown and north Eugene development options.

"It's been really difficult to get clear and concise information from the hospital," McNeel says. "There's an awful lot of numbers floating around, but nothing seems tied down."

McNeel says even basic information such as the number of square feet the hospital plans to build to the north and the number of employees it may have at the site remain uncertain.

But McNeel says "it's pretty obvious" that moving the hospital to the edge of the city will cause far more traffic than the central location downtown with frequent bus service.

"There will be a need for massive transportation infrastructure" to try to relieve the "gridlock" that will be created by the hospital moving to the north Eugene site, Bettman says. Just redesigning the Beltline-Coburg interchange to handle the added traffic could cost $15 to $20 million, she says.

Infrastructure projects in other parts of the city will be canceled to fund the hospital move, Bettman says. "It will be where we have to make all our public investments for the next 30 years."

As the hospital and related businesses move north, Bettman says, "the demographic shift is going to resemble a gold rush. The north area is going to boom and the downtown is going to resemble a ghost town." All the sprawl may force an expansion of the urban growth boundary, she says.

But giving in to the hospital's demands would also be costly.

The city would have to tear down 365 dwelling units, 40 small-to-medium-sized businesses, five larger businesses and 390 trees in the six block area to make room for the hospital. Many of the historic buildings and stately trees in the neighborhood are among the city's oldest.

"Your jaw just drops trying to imagine the whole thing being bulldozed," says Gayle Hutchinson. Hutchinson spent seven years renovating the 1908 home that houses her business and says neighbors love the historic area and are organizing a fight to preserve it.

"I just can't believe this is happening in Eugene," Hutchinson says. "It's just unthinkable."

Bob Dritz, coordinator for the non-profit White Bird low-income medical clinic, says his group is "in the blast zone" and is staunchly against the proposal. The hospital should compromise rather than playing "power politics," he says.

Besides the neighborhood destruction, there's the $35 million subsidy Sacred Heart is asking. That's about the same amount of money that the city has scraped together to build a new downtown library.

It's unclear how the city could come up with the money to save downtown. Kelly says that the city could waive systems development charges for the hospital, worth about $3 million, and sell the hospital streets and alleys within the six blocks for about $1 million.

But that would still leave the city $31 million short. Kelly says a property tax or a one-year income tax surcharge could make up the difference.

Such a tax measure to subsidize Sacred Heart may stand little chance at the polls. It took four votes and almost two decades to pass a measure to fund the far more popular library project.

Terrett says the hospital needs the taxpayer money to help make up for the added cost of acquiring property to build downtown.

But City Manager Johnson told the council last week that the difference between the cost of the north and Hilyard sites for the new hospital may not be as great as the hospital argues. The north site could incur additional costs if the Oregon Department of Transportation or a city hearings official demands that the hospital help pay for road improvements to serve the site. Purchasing additional land from the city and 4J to allow direct access to Coburg Road may also incur added costs, he says.

To Dr. Coolman the reason the hospital is demanding all the money is clear. "Greedy is the best word."


Stick vs. Carrot
The city should reduce the amount of money it has to pay Sacred Heart to stay downtown by making development of the north site more expensive, Dr. Coolman says.

"Whatever can be done to make the north campus less workable for Sacred Heart should be pursued," he says. "Efforts need to be made to not accommodating that site to make downtown more attractive."

At the council meeting last week, Councilor Betty Taylor suggested that rather than condemning the six downtown blocks, the city condemn all or part of Sacred Heart's 38-acre north Eugene site.

City attorney Glenn Klein responded that such a condemnation would be legal for the purpose of creating a public park on the land. "You could do that."

But Klein said he's unsure how much the city would have to pay the hospital for the land acquisition.

Bettman says such a condemnation move would likely face strong hospital opposition and have little support on the council.

McLauchlan says the city should tighten zoning laws and ordinances and charge higher SDCs for edge development to stop subsidizing sprawl at the expense of downtown. "This should be a wake-up call for the city to get moving."

"A lot of the city's zoning out on the edge is so loose and vague you can pretty much do whatever you want," McLauchlan says. "No city has ever stopped sprawl by just offering carrots and incentives downtown."

Another approach would be starting up some competition with the monopoly hospital rather than letting Sacred Heart hold the city hostage, critics suggest. The city could create its own municipal hospital or invite other hospitals to bid on the $35 million subsidy to provide a hospital downtown.

"Maybe the city ought to start talking to McKenzie-Willamette Hospital about moving into the Willamette site," McLauchlan says. "We could actually have some competition in Eugene if we had two hospitals."

"Our commitment to them [Sacred Heart] should reflect their commitment to us," Redmon says. "If your friend stabs you in the back, is he still your friend?" he asks. "I think it's going to get ugly."


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