40,000-square-foot healthcare center coming in 2012

The Maricopa City Council last night unanimously approved a development agreement with Banner Health for the construction of a 40,000-square-foot healthcare center.

“From the time we were born as a city in 2003, we knew we would have to create a higher quality of life,” said Vice Mayor Edward Farrell. “That quality of life consisted of healthcare, jobs and education. By the time the city is 10 years old, we will have a healthcare facility, community college, shovel-ready employment sites and a city complex center. It is amazing.”

The healthcare center, which is scheduled for first-phase completion in September 2012, will have office space to accommodate 18 physicians, and will offer X-Ray and laboratory services.

The physicians will be a mix of primary-care doctors and specialists Banner pulls from its network to meet the needs of the community, according to Craig Jensen, system director of the project.

Neither Banner Health nor the city of Maricopa is calling the new facility a hospital.

“For a hospital, a community has to reach certain population and demographic trigger points,” Jensen said. “Maricopa is not there, but when the city does reach that point we are committed to building a hospital.”

One of the reasons the healthcare provider decided to move forward with a facility in Maricopa according to Jensen was the urgent need for physicians in the community.

According to numbers presented by Banner, a community the size of Maricopa should have approximately 50 specialists and primary-care physicians. Currently, Maricopa is served by a total of only seven physicians. 

“This center will help fill some of those needs immediately,” Jensen said.

The 40,000-square-foot center is the first part of a three-phase project scheduled for construction on the site, which is located at the intersection of Porter Road and Alan Stephens Parkway.

The second phase is a 40,000-square-foot addition that will double the size of the facility; the third phase is an outpatient surgery wing.

The agreement with Banner is the culmination of talks that began in January 2007.

“We have been in constant contact with Banner since that time,” said Economic Development Director Danielle Casey.

In the agreement, Banner commits to spending a minimum of $10 million on the purchase of 11.13 acres of land and construction of the facility.

In turn, the city agrees to provide $1.2 million in grant funding, assume responsibility for road and other off-site improvements and help with the relocation of healthcare employees.

The development agreement also includes a grant repayment penalty clause that will require Banner to return a portion of the grant funds to the city if it underperforms in the creation of jobs or amount of time in the community, or misses the proposed opening date.

Headquartered in Phoenix, Banner Health is one of the largest nonprofit healthcare systems in the country. It owns or manages 23 acute-care hospitals, long-term care centers and outpatient surgery centers in seven states. Banner has several major facilities in the East Valley, including Cardon Children’s Medical Center.

Jensen said Banner is very excited to be partnering with the city on the healthcare center project and the council expressed its appreciation to Banner.

“Thank you for coming here,” said Councilmember Marquisha Griffin. “This is one of the most important announcements we have been able to make as a council.”

Economic impacts of the project:
1. $129.9-million overall economic impact in the city during the next 10 years
2. 90 jobs, 67 direct and 23 indirect
3. Annual payroll of $8.6 million
4. 55 temporary jobs created during construction resulting in a one-time impact of $8.8 million
5. One-time construction sales tax of $185,000
6. Property tax impact of hospital employees to city, state, county and school district of $5.1 million during first 10 years of operations