Proposals for new hospital blooming across the map.

Byline: Edward Russo and Randi Bjornstad The Register-Guard

Possible sites for a new McKenzie-Willamette Hospital are popping up like daffodils in spring - and being stomped on.

Developer Ross Murry on Wednesday said he is offering to sell the hospital 45 acres in west Eugene, property that he plans otherwise to use for a 220-home subdivision. The site is at Royal Avenue between Candlelight Drive and Terry Street.

Murry sent his trial balloon aloft less than a week after land dealer John Musumeci proposed Mckenzie-Willamette build a new hospital at the Lane County Fairgrounds, with the fairgrounds moving to land Musumeci owns south of Lane Community College. On Wednesday, the Lane County Board of Commissioners unanimously shot down that idea, stressing that the fairgrounds is not for sale.

Last week, financially ailing McKenzie-Willamette Hospital and for-profit Triad Hospitals Inc. of Plano, Texas, announced an alliance that, if completed, could lead Triad to build a new hospital for McKenzie-Willamette at an as-yet unselected 35-acre site somewhere in the Eugene-Springfield area.

Observers figure hospital executives will pick a site somewhere in Eugene because the city will not have an emergency care hospital if PeaceHealth succeeds in moving Sacred Heart Medical Center to Springfield's Gateway area, 2 1/2 miles from McKenzie-Willamette's current site.

Hospital officials and area politicians on Wednesday said they expect many offers from landowners. Proposals are "flying right and left," Eugene City Council President Gary Pape said.

"They are coming out of the woodwork," Councilor David Kelly said.

Eugene City planners have drafted a list of 10 potential sites, including the county-owned fairgrounds, that may interest McKenzie-Willamette and Triad.

Pape said city officials should concentrate on the best of the 10 sites instead of Murry's, largely because "I would prefer to have (a hospital) closer to the core of the city."

McKenzie-Willamette spokeswoman Rosie Pryor said it's too early to comment on any site. The decision to move McKenzie-Willamette would be made by the board of the merged Triad/McKenzie-Willamette entity, she said. It may take until June to complete the partnership and form a new board, she said.

Until then, Pryor said, hospital officials won't pay much attention to site offers.

Murry, president of Ross Investments Inc., co-owns the Bethel-Danebo site with MBM Group, comprised of Jim Murry, Dennis Bottem and Mike Murry. The two firms developed much of the Valley River Village complex.

The Bethel-Danbeo site is easily accessed from Belt Line Road via Roosevelt Boulevard, Murry said. The site would need a use change for a hospital, Murry said. City plans designate it for low-density residential use.

McKenzie-Willamette officials are to brief the Eugene City Council next Wednesday.

Until all potential sites are identified, Eugene Mayor Jim Torrey said, "the best thing that we can do is to take a step back and take a deep breath."

Meanwhile, Musumeci had offered to trade 100 acres of undeveloped, logged-over forest land south of LCC for the 56-acre fairgrounds site. His firm, Arlie & Co., would create a master plan for the fairgrounds property, donate part of the land to accommodate a hospital and retain the rest for other development, Musumeci said.

County officials scoffed at the plan.

Commissioner Bill Dwyer said it was "disingenuous, at the very least ridiculous," given that the fairgrounds is far more valuable than the 100 acres of forest land.

Commissioners Peter Sorenson and Tom Lininger also quickly rejected the proposal, Lininger because the exchange offered "a penny on the dollar" for the value of the fairgrounds and Sorenson because the offer was "a significant threat to the urban growth boundary." Musumeci's acreage lies outside the urban growth boundary.

Commissioners Anna Morrison and Bobby Green said the county should still listen to any other proposals Musumeci or other developers might float.

Late Wednesday afternoon, Musumeci said he was "very saddened" by the board vote.

"I'm sorry that the focus has been taken off the two main issues here: Is the fairgrounds site good for a hospital? And should the fairgrounds continue to be located in the city?" Musumeci said. "Unfortunately, they focused in on the site we offered instead of these two important issues. I think the public should continue to look at those two issues."

McKenzie-Willamette officials are to brief the Eugene City Council next Wednesday.

Until all potential sites are identified, Eugene Mayor Jim Torrey said, "the best thing that we can do is to take a step back and take a deep breath."