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Breaking News: Sutter/PAMF Puts San Carlos Hospital Project on hold…

April 9, 2009 Downtown San Carlos No Comments


Funding Pulled on Hospital Project

In a stunning announcement this morning, The Redwood City Daily News reported that Sutter Health, the parent company of the Palo Alto Medical Foundation, has pulled funding and halted construction on the new PAMF hospital that was slated to be built at the junction of Holly Street and Highway 101 in San Carlos.    Executives at Sutter cited the recession in their decision to halt the project.  No time-line was committed on when (or even if) construction will resume on the  project.

Here’s the complete story from the Redwood City Daily News:  Hospital’s Funding on Hold

Update:  The Daily Journal published an article as well, which further elaborates on the status of money already paid to the City, and the Holly Street Widening Project.  Click here for the Michelle Durand’s article:  Hospital on Hold.

Good News/Bad News

There will certainly be a mixed reaction from the City of San Carlos to this news.  On one hand, the $91 million in revenue the City stands to receive over the next half-century is now not a sure thing.  It’s also not clear from this article how, or if, this will impact the development of the parks and athletic fields in San Carlos.  Part of the initial contract involved PAMF providing San Carlos Park & Rec with funds to improve and maintain its parks.

On the other hand, residents who have opposed this project from the outset will be elated.   Groups such as Save San Carlos Health have formed an organized vocal opposition to the plan.   And it’s also not clear what will happen with the proposed widening of Holly Street, yet another controversial project that was being pushed to alleviate the expected traffic gridlock at the intersection of Holly Street and Industrial Road.   I can’t imagine that Sequoia Hospital is shedding a tear over this news, either.

What’s Next?

It’s clear from the comments in the article that this announcement was a bit of a surprise to the City Council of San Carlos.   One would expect there will be some sort of official statement from the City in the near future, either on their website or at a future City Council Meeting.  The next one is scheduled for this coming Monday, April 13.  Stay tuned…


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