NEW HOSPITAL COMING 120-BED, STATE-OF-THE-ART FACILITY PLANNED FOR WEST SIDE.

Byline: Jim Skeen Staff Writer

PALMDALE - A Pennsylvania medical chain said a three-month study persuaded it to move forward with building a 120-bed hospital in west Palmdale.

In a letter received Thursday by the city, Universal Health Services said it was ``reasonably satisfied that the market and medical need conditions justified a hospital'' and that the company was ready to move ahead.

``We look forward to continuing the process towards the construction of a state-of-the-art medical facility for the city of Palmdale,'' David Bryant, assistant director of development for UHS, wrote in the letter.

Under an agreement approved Aug. 8 by the City Council, UHS had until Nov. 6 to decide whether it would continue with the project.

UHS plans to build a 175,000-square-foot hospital on 30 acres at the northeast corner of Tierra Subida and Avenue Q-8.

In the Aug. 8 agreement, the City Council promised $6.67 million in aid, including $3.9 million to acquire land and make site improvements, to establish the hospital.

City officials said Thursday they expect to get the $6.7 million back through higher tax revenue from the hospital property in eight or nine years. The property is now vacant land.

The incentives will also assist with the construction of about 100 senior housing units adjoining the hospital.

UHS also plans to build a $10 million, 50,000-square-foot professional medical office building at the site.

The city and UHS will also look into the possibility of a partnership with a home developer, New West Properties, which owns 20 acres next to the hospital site. New West Properties has expressed an interest in being the developer of the senior housing, city officials said.

``We'll be setting up meetings with New West and UHS to see if we're going to bring them in,'' said Michael Adams, Palmdale's housing manager. ``Within a year that determination will be made.''

The city estimates it will cost about $2 million to acquire the 30 acres and an additional $1.9 million to make improvements. The city will also waive $1.17 million in traffic, drainage, water and sewer fees and provide a maximum of $100,000 for property tax payment assistance.

The rest of the assistance package, about $1.5 million, will go toward development of 100 senior housing units at the site. Those incentives include about $1 million in fee waivers and $500,000 in site improvements.

UHS looked at a variety of different sites, including some on the east side, officials said. The Tierra Subida site was chosen because it is close to the Antelope Valley Freeway and visible throughout most of the city.

UHS owns or operates 100 acute-care hospitals, behavioral health centers, and ambulatory surgery and radiation oncology centers in 22 states and Puerto Rico. The company has two hospitals in California, the 80-bed Inland Valley Regional Hospital at Wildomar and the 96-bed Rancho Springs Medical Center in Murrieta.

The company, based in King of Prussia, Pa., has 30,000 employees and net revenues of more than $2.2 billion.

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Proposed Palmdale hospital site

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