San Diego Business Journal

District Seeks State’s Approval for Hospital Building Projects

Thursday, December 1, 2011

The government agency that acts as the landlord for Sharp Grossmont Hospital could move dirt on major building projects next year, while it could also begin remodeling one of the dominant structures on the hospital campus.

Barry Jantz, CEO of the Grossmont Healthcare District, said the timing of construction depends on several variables, including when state officials have a chance to review and approve hospital building plans.

The entire hospital project will pencil out to $240.8 million, district staff determined when it updated its construction budget in mid-September. The price tag is $6.2 million less than the $247 million in bonds that East County voters approved for the hospital project in 2006.

Sharp HealthCare runs the 536-bed, La Mesa hospital under a 30-year lease with the hospital district.

The district expects to invite construction bids on its $60.4 million Heart & Vascular Center during the first quarter of 2012, Jantz said. Construction on the 86,330-square-foot project could begin in earnest by June or July.

District officials anticipate that construction will cost $42.8 million. Architectural and engineering fees are expected to total $10.5 million; equipment is expected to cost an additional $1 million; and administrative costs are expected to take an additional $6 million, according to an October forecast prepared by the hospital district.

The district has set Dec. 14 to open bids on its push to renovate 153,000 square feet of the hospital’s East Tower, which was built in 1974. Eleven general contractors were prequalified to submit bids. The tower project will cost $44.2 million. Some $33.4 million of that cost is expected to go toward construction, while slightly less than $1 million is budgeted for equipment.

— Brad Graves