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Developers Assist Hospitals With Parking Structure Design And Financing

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Developers Assist Hospitals With Parking Structure Design And Financing

(As Seen in Parking Today, February 2000)

 

Healthcare’s increasing emphasis on outpatient services from inpatient care is causing unanticipated parking demands at many older hospitals. Such ambulatory care services increase the need for parking space at many land-lacking facilities, forcing the need for parking structures.

While solutions to parking problems may seem expensive, considering off-balance sheet financing alternatives and innovative development strategies can bring a new structure within the grasp of cash-strapped healthcare providers.

Many hospitals are taking advantage of this option and have contracted with companies like Pacific Medical Buildings, whose development plans have made some healthcare providers’ parking problems virtually disappear. The San Diego based company has provided developer-owned medical facilities, including office buildings, outpatient centers and parking facilities. The program allows the addition of new parking structures without risking scarce capital. They design, finance and develop the structure and continue the management after construction is completed.

One such project was the St. Francis Medical·Center in Hawaii. The hospital was assisted in a number of ways during construction.

Meeting Parking Needs During Construction: In addition to adding a new parking structure at the St. Francis Medical Center, Pacific was simultaneously building a medical office building (MOB) on the campus. The new MOB would be built where an existing parking structure was located, requiring the demolition of the parking structure. St. Francis could not go without parking for the year it would take to build the new MOB and parking structure, nor could they delay construction of the MOB to complete the new parking facility before tearing down the old one. Pacific’s solution was to divide the construction on the new parking structure in half. The construction of the first half took only five months. When it was completed, the old structure was demolished and simultaneous construction on the second half of the parking structure and the MOB began, saving time while meeting parking needs.

Financing: Pacific managed the financing of the new parking structure at St. Francis. The hospital was not required to sign a master lease or make any investment towards the new parking structure. The new MOB was financed with a taxable bond issue and through creative financing Pacific was able to get the parking structure on that same bond. By selling a bigger bond ($25 million), the hospital was saved considerable money. Upon completion of the facility, St. Francis purchased the parking structure from Pacific. Pacific continues managing the MOB and other buildings on the St. Francis campus today.

Neighbors: St. Francis Medical Center is located in a residential neighborhood. Homes are very close to where the new parking structure was being built. The process began by meeting with neighbors to discuss what Pacific could do to make the presence of a large parking structure so close to their homes more bearable. As a result, the design was reworked and they pushed it one level into the ground, decreasing the height of the building. Vines were trellised up the side of one wall and planters were installed to hold colorful flowers and plants.

Lighting: With the close proximity of residential homes, the lighting of the parking structure had to be carefully designed. Lights were shielded so they would not shine into homes. On the top floor, 90 degree cutoffs were installed so the light did not spill outside of the designated area.

 

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Testimonials

Michael B. Shanahan, AIA   
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“I worked closely with the PMB team in developing a 172,000 square foot medical office building on the campus of our hospital in Poway. PMB has proven to be an excellent partner, by way of providing professional development services while maintaining positive working relationships despite any project challenges. Their on-going sustained property management expertise demonstrates PMB’s commitment to long-term ownership and maintenance of these important assets.”

Michael B. Shanahan, AIA
Senior Project Manager
Sutter Health

Formerly - Director, Facilities Planning & Development
Palomar Pomerado Health

Steve Gilbert   
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“When embarking on complicated projects of this size and scope, it is critical to partner with a developer that will complete the project on schedule, with strong financial resources and a long-term ownership approach. PMB possess all these traits and has continued to exceed our expectations.

It is also paramount that our healthcare real estate facilities, operators and owners are professional, reliable and maintain the highest standards of the healthcare experience. PMB embodies all the necessary characteristics and resources of a trusted strategic real estate partner. We look forward to a continued relationship with PMB.”

Steve Gilbert
Senior Vice President, Construction
Innovation Institute / St. Joseph Health System

Bob Mitsch   
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“Since the Eden Medical Center needed to be completed commensurate with the opening of the hospital, it was critical for Sutter to identify a developer with the capability, financial resources and expertise to lead the overall MOB project development. For this reason, Sutter chose PMB to be the developer, owner and operator of our new 80,000 square build-to-suit clinic. I found the PMB team to be a developer I could trust and I’m confident that they will continue to maintain and operate this vital campus asset through their property management division, PMBRES.”

Bob Mitsch
Vice President, Facility and Property Services
Sutter Health

Bill Gil   
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“Capital decisions are more critical than ever. No investment has a larger or longer impact than the development of a new medical facility. PMB has been our partner of choice for a decade, and will continue to be for a long time to come.”

Bill Gil
CEO
Providence Health Network

James Padova, M.D.   
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“In addition to the operational benefits of a new medical office building - including a more patient-friendly environment, better working conditions and increased staff productivity - there can also be significant ownership benefits, as we found with St. Joseph Medical Tower. The additional income that is generated by the real estate partnership is particularly attractive in today's uncertain economic climate.”

James Padova, M.D.
Hematology/Oncology Medical Group of Orange County, Inc.

James S. Noble   
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“We have been impressed with PMB’s experience and expertise in the management and development of a very complex project both on time and on budget and have found PMB to be a developer we can trust to maintain and operate this important asset. They continue to work closely with the hospital administrative team, physicians and multiple stakeholders involved with the continued growth of the building.”

James S. Noble
Executive Vice President - COO/CFO
Huntington Memorial Hospital

Diane Laird   
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“PMB acted as a true partner in the development of our new facility. They consistently made decisions that benefited our position and the overall project with a spirit of collaboration and a focused goal of a successful outcome."

Diane Laird
Chief Strategy Officer
MemorialCare Health System

PhD. Philip Pumerantz,   
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“Western University’s Patient Care Center represents the future of medical education and patient treatment. Its design, layout and technology make it ideal for integrated care management and inter-professional collaboration.”

Philip Pumerantz, PhD.
President
Western University of Health Sciences

Prub “PK” Khurana   
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“PMB created a team-oriented, transparent development process for the new Facey Medical Group Clinic. The PMB team managed a very complex process ultimately resulting in a project that was delivered ahead of schedule and significantly under budget. This allowed for a quicker time to market providing significant value to our patients and organization. We’re proud of our new facility and successful partnership with PMB.”

Prub “PK” Khurana
Chief Administrative Officer,
Medical Group Foundations at Providence Health & Services


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