This initial computer rendering of the new three-story medical office building on Greenback Lane shows the building with a 20-foot setback, which will increase to a 30-foot setback, according to terms of a settlement agreement reached. // Image courtesy, City of Citrus Heights.
A settlement agreement has been reached in a lawsuit between a resident group and the City of Citrus Heights, nearly a year after council members unanimously approved a controversial plan to move city hall and construct a three-story medical office building (MOB) in its place on Greenback Lane.
The lawsuit, filed last April by a resident group known as Preserve Our Civic Center (POCC), alleged the project did not comply with the California Environmental Quality Act (CEQA), and sought to put a halt on both the new city hall and MOB until alleged violations were addressed.
Under the terms of the settlement agreement, POCC agreed to drop its lawsuit against the City, in exchange for several modifications to the original plan. POCC will also receive payment of $67,500 to cover its attorney fees and costs involved in the lawsuit.
Modifications listed in the settlement primarily address issues raised by residents during the debate over the project last year, including concerns about screening and setback for the 68,727-square-foot medical building, increased traffic, and a desire to preserve the old rose garden at city hall.
A statement issued by POCC spokesman Norman Hill summarized key aspects of the settlement agreement and stated the group was “pleased” to announce the settlement had been reached. Previously, Hill told The Sentinel he was hopeful “some kind of compromise settlement” could be reached with the City through the legal process, and he appears to have accomplished that.
The city manager’s office confirmed Thursday that a settlement had been reached, but referred all requests for comment to City Attorney Ruthann Ziegler. Messages left by phone and email for Ziegler on Thursday were not returned by 4 p.m. Friday.
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Five key modifications listed in the settlement include:
Setback from Greenback Lane: In an effort to reduce the visual impact of the building from travelers on Greenback, the new Dignity Health medical building will be set back an additional 10 feet, for a total setback of 30 feet from Greenback Lane.
Screening: To help provide screening for the adjacent neighborhood, a row of Redwood trees will be planted along the western border of the new medical building.
Traffic: The left turn lane from eastbound Greenback Lane onto Fountain Square Drive will be extended by four car lengths. Hill previously told The Sentinel he believed this modification would help alleviate a traffic backup he anticipates with the new MOB.
Access: Larger vehicles exiting a soon-to-be-built utility yard next to the new city hall will be required to exit only from the northern driveway. According to POCC, this will help reduce the impact on local traffic passing by on Fountain Square Drive.
Rose garden. A public meeting will be held by the City to discuss development of a replacement rose garden at another location, although the ultimate decision is left to the City whether to expend public funds on the garden or not.
The settlement announcement comes less than a month prior to a scheduled Sacramento Superior Court hearing on the lawsuit, originally set for April 1, 2016.
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It is unclear whether the lawsuit had an effect on construction progress of the new medical building, as neither POCC nor the City said work had been halted on the project. However, the lot has laid dormant since demolition of the former hall was completed in November of last year.
According to a statement from the city manager's office in January, Panattoni Development had submitted plans for the new medical building, with construction estimated to begin in spring of this year -- although a specific start date was unknown.
[Related: "Citrus Heights city hall ‘on target’ for completion by September" ]
Construction work on the new city hall began last summer, with an expected completion date of September of this year.
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An artistic rendering of the new $22 million Citrus Heights city hall, to be located just North of the Post Office. // Courtesy, Capital Partners Development Co.
Updated Mar. 27, 2:26 p.m. —
Citrus Heights council members voted unanimously Thursday night to approve a long-debated $53 million proposal to tear down and relocate the City’s existing hall and replace it with a three-story medical office building (MOB) — rejecting a proposal and lawsuit threat by a resident group proposing a less-imposing two-story design.
“Mr. Hill, I’m sorry that you feel the way you feel,” Councilman Jeff Slowey told Norman Hill, who heads the resident group Preserve Our Civic Center. “But threats, they don’t bother me in the least bit. If you wanna go to court I say bring it on — but bring your checkbook.”
Hill, a retired environmental attorney, has promised litigation in the past and reiterated his “compromise” offer Thursday night, which seeks to lessen the environmental and visibility impacts of the proposed medical building by increasing the setback away from Greenback, and lowering the height. He said by adopting his proposal, the City could avoid litigation and still get a new hall and two-story medical building.
“I recommend that you take a hard look at this proposal, or we will meet again to discuss it at a settlement conference in a CEQA lawsuit,” Hill told council members prior to the vote, referencing requirements in the California Environmental Quality Act he says the City hasn’t met.
City staff and council members believe the City has followed CEQA requirements, with environmental consultant Katherine Waugh addressing findings covered in a several-hundred page Environmental Impact Report on the project. Waugh told council members the report found “no significant effects” to the environment on either of the building projects – as long as a list of mitigation measures are followed.
Hill’s proposal was given significant discussion during the three-and-a-half-hour hearing Thursday night, but City staff said it wouldn’t work for parking, due to the larger footprint being required to maintain the building’s square footage with a two-story design. Legally, the City requires one parking spot per 225 square feet, and staff said that doesn’t allow for enough parking with Hill’s proposal.
Hill said the City could gain extra parking needed by utilizing its new Green Parking Lot and modifying the police department parking area, although Police Chief Christopher Boyd told the council such an arrangement would not be “workable” or safe for his department’s need for secured parking.
Although about half-a-dozen residents spoke out against the project during the hearing, Councilman Steve Miller said public comment has “flipped” from being 9-out-of-10 opposed to the project, after the City switched its focus away from a smaller hall location on Antelope Road last year.
Lead opponent Tim Schaefer commented in past meetings that the new 10.9-acre Stock Property is “a super-positive development” for the hall proposal, and others have commented favorably that the new location would keep City services in close proximity off Fountain Square Drive. The Stock Property is located just a half-block away from the existing hall, and staff say it’s large enough to allow for a utility yard and future expansion.
Concerns about increased traffic, a shrinking $26 million City reserve, and construction noise have continued to be raised by opponents, while supporters have billed the project as good for jobs and a cost-efficient way to replace an aging hall without incurring debt. The project was supported Thursday night by representatives from the Citrus Heights Chamber of Commerce and the Sunrise Marketplace business improvement district.
“I think the time is right, the price is right,” said Councilman Miller prior to casting his vote in favor of the proposal, adding that it’s still an “emotional” decision for him. “I imagine if we bring this place down I’ll shed a few tears, but this is an opportunity for growth for our city and renewal.”
Miller acknowledged the new three-story medical building would make for a “stark” transition from Greenback Lane’s residential zone into its commercial zone, but said “I think this is just too good of a deal to pass up.”
That deal was described by Monica Alejandrez, assistant to the city manager, as “an extremely rare opportunity” for the City, resulting in a “direct investment” of $53 million into Citrus Heights. She said the hall is estimated to cost “no more than $22 million,” with Dignity Health’s new medical building costing about $31 million.
Under the terms of the deal approved Thursday, Alejandrez said the net impact of the new hall to the City’s general fund will only be about $8.9 million after 15 years, largely due to $6.9 million in lease payments coming from the medical building, as well as projected energy savings from a new, more efficient facility.
That $6.9 million lease payment from Dignity Health, as well as the promise of 170 new medical-related jobs, has been a significant consideration factor since the deal began being discussed in 2013.
“When you can get more than a fourth of [the new hall] paid for, I think that’s a good deal,” said Councilman Slowey during the meeting. He added that the new hall wouldn’t be under consideration at this point without the Dignity Health lease offer being made on the City’s property. Staff said the assessed value of the existing hall has dropped from a high of over $5 million, to a most recent low point of under $2 million in 2014.
Council members acknowledged both pros and cons to the project, but Mayor Sue Frost said she “doesn’t see how the negatives even stack up” in comparison.
“I think the positives way outweigh the negatives for our City to bring Dignity [Health] to Citrus Heights,” said Frost, although acknowledging that feedback from residents has helped improve the project’s design and location.
“I do want to thank all of our residents who have engaged in the public process,” said Frost, referencing comments received since discussion began about the project more than a year ago. “Without you it wouldn’t have the face that it has, and it wouldn’t be as good as it is.”
Following Thursday’s vote, Frost said leases will be executed and City staff will begin searching for a temporary location, with demolition and construction work beginning as early as this summer.
Updated Mar. 9, 10:26 a.m. —
Beginning with a Planning Commission hearing on Wednesday, a final decision is set to take place this month on the proposal to move city hall and allow Dignity Health to construct a 68,000-square-feet medical office building (MOB) in its place.
An artistic rendering of a proposed new design for city hall by Capital Partners Development Co.
Leading up to a scheduled March 26 vote by the city council, planning commissioners will take up the proposal on March 11, with a council “study session” set for the following day. The commission will also make a recommendation to the council as to whether it should approve, or deny, the recently published final version of an Environmental Impact Report (EIR) on the proposal.
The Planning Commission held an initial hearing in January on a draft version of the EIR, where several complaints were made about increased traffic, noise and an “inadequate” environmental review. Although the commission’s role did not include responding to comments received during the hearing, the final version of the EIR is required to have responses to each comment received during the 45-day draft review period, which ended January 26.
Discussion of the proposal came about last year when City officials said Dignity Health proposed a “once-in-a-lifetime opportunity” for Citrus Heights to get a new hall for a net cost of about $5 million, after 15 years. Due to changes in the new $22 million hall’s proposed location, that net cost is now estimated at $8.9 million, according to Monica Alejandrez, assistant to the city manager.
Cost benefits to the City would come primarily from income brought in by the proposed Dignity Health lease, as well as from projected energy and repair savings coming from a more efficient new city hall building, according to City Manager Henry Tingle.
The city council had previously selected a location on Antelope Road last year as the “preferred site” for a new hall, but council members voted unanimously to switch plans to a closer, larger parcel that came available late last year. The new 10-acre “Stock Property” enjoys greater public support, and is located next to the Post Office — just several hundred feet from where the existing hall sits on Fountain Square Drive.
Upcoming March 2015 meetings: March 11, 7 p.m. — The Planning Commission will hold a public hearing to consider the final EIR, design review permit, and associated actions. Ultimately, the Planning Commission will make a recommendation to the City Council to either approve or deny the final EIR, design review permits, and other associated actions related to the proposed Medical Office Building and City Hall Project.
March 12, 5 p.m. — A study session will be held by the city council to discuss the two draft ground leases related to the proposals.
March 26, 7 p.m. — A public hearing and vote will be held by the city council to consider approving the final EIR, design review permit “and other associated actions related to the proposals.” The council will also decide whether or not to authorize the city manager to enter into the proposed ground leases associated with proposals.
*All meetings are scheduled to take place in the Citrus Heights City Council Chambers, at 7117 Greenback Ln.
Wondering what’s going on with the proposal to construct a new three-story medical office building in place of the existing Citrus Heights city hall?
Computer rendering of Dignity Health’s proposed new three-story medical office building on Greenback Lane. // Courtesy, City of Citrus Heights
After more than a year of discussion, debate and even a lawsuit threat by an upset resident group, Citrus Heights council members are scheduled to take a final vote in March on the proposal to relocate a new $18 million city hall, and allow Dignity Health to construct a 68,000-square-feet medical office building (MOB) at the corner of Greenback Lane and Fountain Square Drive.
According to Monica Alejandrez, assistant to the city manager, environmental consultants and City staff are currently working on the Final Environmental Impact Report (FEIR) for the proposals, which will include responses to all comments submitted during a 45-day review period on a draft version of the report released in December. She said the City is hoping to have the final report completed by February 27, but it depends on how quickly consultants can compile responses to comments.
Although comments were also able to be submitted in writing, public comments received from a handful of residents during a January 14 Planning Commission hearing included complaints about increased traffic, noise and an “inadequate” environmental review. A suggestion was also made by resident Norman Hill to lessen visibility impacts of the proposed three-story MOB by lowering it to two-story and increasing the set-back “so it’s not right up against Greenback.”
City officials have called the Dignity Health proposal a “once-in-a-lifetime opportunity” for Citrus Heights to get an $18.9 million new hall for an estimated net cost of about $5 million. The discounted cost would come primarily from income brought in by the proposed Dignity Health lease, as well as from projected energy and repair savings coming from a more efficient new city hall building, according to City Manager Henry Tingle.
The city council had previously selected a location on Antelope Road last year as the “preferred site” for a new city hall, but council members voted unanimously to switch plans to a closer, larger parcel that came available late last year. The new 10-acre “Stock Property” enjoys greater public support, and is located next to the Post Office — just several hundred feet from where the existing hall sits on Fountain Square Drive.
Upcoming March 2015 meetings: March 11, 7 p.m. — The Planning Commission will hold a public hearing to consider the FEIR, design review permit, and associated actions. Ultimately, the Planning Commission will make a recommendation to the City Council to either approve or deny the FEIR, design review permits, and other associated actions related to the proposed Medical Office Building and City Hall Project.
March 12, 5 p.m. — A study session will be held by the city council to discuss the two draft ground leases related to the proposals.
March 26, 7 p.m. — A public hearing and vote will be held by the city council to consider approving the FEIR, design review permit “and other associated actions related to the proposals.” The council will also decide whether or not to authorize the city manager to enter into the proposed ground leases associated with proposals.
*All meetings are scheduled to take place in the Citrus Heights City Council Chambers, at 7117 Greenback Ln.
Planning Commission members listen as Citrus Heights resident Norman Hill addresses concerns about the project, Wednesday night.
In a packed council chamber Wednesday night, the Citrus Heights Planning Commission voted in favor of recommending the city council amend its General Plan and zoning codes, allowing for a controversial proposal to move city hall and construct a three-story medical building in its place.
“I think it went very well,” said Planning Commission Chairman Albert Fox, who voted in favor of the recommendation. “There’s some highly emotional issues involved… and I appreciate and respect those folks for their position.”
The Commission made its nearly unanimous decision after a three-hour meeting that was filled with public comment from over 20 community members, a majority of whom opposed moving city hall.
“I have nothing against a medical office building, just not in this space,” said resident Susan Howell during the public comment portion of the extended, three-hour meeting. “This is our city center. We should keep it that way.”
Proposed 3-story medical office building being considered by the Planning Commission. //Photo courtesy Dignity Health
After a year of negotiations and community input, the Citrus Heights Planning Commission will hold a public hearing Wednesday night for the proposal to build a 68,000 square feet medical building at the current City Hall site, and build a new hall on Antelope Road.
While the City calls the proposal a “once-in-a-lifetime” deal that would give residents a new City Hall and bring jobs and dollars to the area, opponents say the numbers “don’t make sense,” and plan to be at Wednesday’s meeting to advocate for keeping City Hall at its current location on Fountain Square Drive.
“We’re taking every opportunity to make our point known, whether it’s through the Planning Commission, or through the City Council.” said proposal opponent Tim Schaeffer, who heads up a volunteer group called Save City Hall.
Schaeffer said his group is made up of about 25 volunteers who have been circulating petitions, sign-waving, and educating residents as part of their effort to keep City Hall in the civic center, next to the Police Department and the recently built Community Center.
The civic center aspect of the proposal to move City Hall is expected to be a major point of discussion at tonight’s meeting, due to the wording of Goal 21 in the City’s General Plan which states that government services are to be concentrated at a “civic center complex.”
Suggested amendment to the City’s General Plan, which would allow for City Hall to be moved away from the other civic center buildings.
A City staff report suggests that the Planning Commission eliminate the “civic center complex” language from the goal to allow the proposal to go through. The report also recommends the commission approve several other key entitlements needed for the projects to go forward, including the approval of zoning code amendments, tree permits, design review permits, and an environmental report’s findings.
Following the Planning Commission’s recommendations, the City Council is expected to take up the matter at their July 24 meeting.
—
If you plan to go tonight:
Planning Commission meeting
Public Hearing
7:00 p.m., July 9, 2014
City Hall Council Chambers
7117 Greenback Lane
Over 800 pages of documents were released for public review this week, as part of the City’s proposed plan to move City Hall to Antelope Road and allow a 68,000 square feet medical building to be built in its place.
The documents include a detailed assessment of environmental and traffic impacts at the new hall’s proposed location, as well as the medical office building location at Greenback Lane and Fountain Square Drive.
Environmental assessment portions of the documents make up nearly 700 pages, while the traffic study portion details the findings of Fehr & Peers in a 47-page report, with an additional 110 pages of appendices. Among other findings, the study determined that a new traffic light would be necessary if the new hall were to be built on Antelope Road, between Mariposa Avenue and Auburn Boulevard.
The Citrus Heights Planning Division included a statement along with the documents which indicated the proposal would require the City to amend its General Plan in order to change the land use designation from “public use” to “general commercial” on a portion of the proposed medical building site. The statement also said the City would need to amend its zoning code in order to allow public buildings at the residential-zoned Antelope Road site.
Interested parties and agencies are encouraged by the City to review the report and provide comments during the public review period which will continue until July 11, with documents available for viewing online at the City’s website, or in person at City Hall’s public counter.
Following the public review period, the Planning Commission will consider the building proposals on July 9, and the City Council will take the matter up at its July 24 meeting.
A conceptual view of the proposed 3-story medical office building at Greenback Lane and Fountain Square Drive, which some residents say doesn’t fit with the “small-town” character of the city. // Courtesy of Dignity Health
*Editor’s note: As this story is now several months old, a more up-to-date story can be viewed by clicking here.
Controversy erupted at a community meeting this week over a proposal to bring a new 3-story medical office building to the existing Citrus Heights city hall location, and move the hall to Antelope Drive.
In a full room of about 200 people, public comments from the audience were largely critical or skeptical of the proposal, although Board Chairman Evan Jacobs from the Citrus Heights Chamber of Commerce announced the Chamber had recently taken a unanimous vote in support of the proposal.
The meeting was the sixth in a series of evening sessions designed by the City to inform the community about the proposal and invite feedback from residents — and during the evening’s four separate Q&A times, many residents expressed concern over building size, construction noise, traffic, location choice and cost.
Event Facilitator Wendy Hoyt sought to keep the meeting moderated and on schedule, but audience members shouted accusations of “cutting off” speakers when she tried to close comments while a few hands were still up in the room.
“Many assumptions have been made in the financial scenarios made by the City-hired consultant,” said Joan Bippus, during one of the evening’s question times. “There are still too many unanswered questions for these proposals to be accepted as gospel.”
The 40-year resident also said the 68,000 square feet medical building would not be in keeping with the City’s General Plan, which lists a community development goal of “Preserv[ing] the unique character of Citrus Heights” and its “small-town attributes.”
City Manager Henry Tingle responded to some of the concerns by calling the Dignity Health medical building proposal a “once-in-a-lifetime opportunity,” where the City could get an $18.9 million new hall for an estimated net cost of about $5 million — primarily due to income from leasing land for the medical building, as well as projected energy and repair savings coming from a new city hall.
Built in the 70’s and previously used by a nursery, the City has said the existing hall buildings are in need of major repairs and upgrades. Additionally, City officials have emphasized that the current city hall was always considered to be a temporary solution when the City first incorporated in 1997.
If the City were to reject the Dignity Health proposal, it estimates a cost of $11.9 million to provide “necessary improvements” to the existing hall structures, although it had previously reported a lower repair and upgrade cost of $5.5 million earlier this year.
Reacting to the cost estimates, one resident called the numbers presented by the City “a shell game.”
“They only give the information they want to give,” said Susan Howell, who also lives nearby the proposed medical office building location. She also expressed concern about construction noise, and adding more traffic to an already-busy Greenback Lane.
Presenters from both the City and Dignity Health sought to calm tensions by calling the proposal a “win-win” for everyone involved, saying the new medical office building would help serve Citrus Heights’ aging residents, bring in jobs, help pay for a new city hall and boost business in the Antelope Road area.
A packet handed out to attendees also included a list of ways Dignity Health had responded to community input at past meetings, including decreasing the size of the building by 25 percent, adding more trees, and agreeing to retain most of the existing palm trees.
Varying reactions to the proposal have also been seen across the city.
Notably, both of the neighborhood associations representing residents around the Antelope Road and Fountain Square sites have avoided taking a position on the proposal, citing conflicting opinions of residents and unknown impacts.
The City acknowledged there are still unknowns about the proposal, with environmental and traffic impacts among those brought up and currently being studied.
Environmental unknowns will be reviewed, and findings will be released for public review in June, followed by a final decision on the proposal in July by the council, according to Citrus Heights Planning Manager Colleen McDuffee. She added that a final decision date is tentative, as it is dependent on environmental review findings.
A full traffic report is also expected to be available in June by Fehr & Peers, but a representative from the company said it was already “clear” that a new traffic light would have to be installed if city hall were moved to the proposed 7625 Antelope Rd. location.
The agenda for the evening also allowed for an “open house” one-on-one opportunity at the end, and Hoyt made it clear to attendees that city staff and architects wouldn’t be leaving until everyone had an opportunity to ask questions and get answers. Conversations continued until about 9 p.m., well after the main session was scheduled to close at 8:20 p.m.
Although the April 30 event was the final community meeting, residents will still have an opportunity to voice their opinion when the planning commission and city council take up the issue this summer.
The City welcomes questions and comments about the proposal via email at publicinfo@citrusheights.net, or by phone at (916) 725-2448.
The “preferred design” of a new city hall, selected by the Citrus Heights city council at its April 10 study session.
A final community meeting to discuss the potential relocation and construction of a new city hall for Citrus Heights has been scheduled for April 30.
The meeting is the last in a series of City-hosted community discussions, following a proposal by Dignity Health last year to build a 66,000 square feet medical office building in place of the existing hall on Fountain Square Drive.
Although a final decision is not expected until July, the city council selected a preliminary “preferred design” and site for the proposal at an April 10 study session, choosing 7625 Antelope Rd. as the best location to move city hall.
While council members in favor of the site selection mentioned economic reasons as a primary motivator, Councilwoman Jeannie Bruins was the only one to vote against the Antelope Road site, commenting that a city hall “doesn’t fit” the residential-zoned area. Several residents also spoke out against the Antelope Road location in their public comments.
In an update posted on CitrusHeights.net, the City is encouraging community members to attend the April 30 meeting at 6:30 p.m. in the Community Center at 6300 Fountain Square Dr. Attendees are also invited to come at 6 p.m. for an opportunity to review plans for the medical office building and city hall.
