City of Palo Alto Gives Green Light to Rebuild, Expand Stanford Hospitals

Vote Certifies FEIR, Approves Development Agreement and $175 million in Community Benefits

STANFORD, Calif.--(BUSINESS WIRE)-- The Palo Alto City Council today voted unanimously to certify the Final Environmental Impact Report (FEIR), grant land use approvals and execute a Development Agreement with Stanford Hospital & Clinics, Lucile Packard Children’s Hospital and Stanford University, including a $175 million community benefits package as part of the Renewal Project. These approvals pave the way for a historic investment in modern medical facilities at the Stanford University Medical Center and come after four years and nearly 100 public meetings.

The Lucile Packard Children's Hospital expansion balances clinical advancements with the specialized ...

The Lucile Packard Children's Hospital expansion balances clinical advancements with the specialized needs of pediatric and obstetric patients and their families. (Photo: Business Wire)

“We are very grateful for the City Council’s decision and thank them for their support and collaboration during this process,” said Christopher G. Dawes, President and CEO of Lucile Packard Children’s Hospital. “This project is critical for us to continue to serve our community needs and will enable us to provide the most advanced treatments and breakthroughs to our patients—including the children and expectant mothers who rely on us for care.”

The Renewal Project will rebuild Stanford Hospital and expand Packard Children’s Hospital to assure adequate capacity, meet State-mandated earthquake safety standards, and provide modern, technologically-advanced hospital facilities. The project also includes replacement of outdated laboratory facilities at the Stanford School of Medicine and remodeling of Hoover Pavilion.

The Palo Alto City Council’s certification of the Final Environmental Impact Report – a comprehensive evaluation of all environmental impacts of the project – and decision to approve the land use changes, permits and Development Agreement complete the legislative actions needed for the Renewal Project. Future grading, building and other permits will be reviewed by the City’s public works and planning department, along with the Office of Statewide Health Planning and Development (OSHPD).

“Our vision is to heal humanity through science and compassion, one patient at a time,” said Stanford Hospital President and CEO Amir Dan Rubin. “These new facilities will ensure that we can fully achieve that transformative potential. We are grateful to all involved in the extensive community dialogue that has occurred over the past four years.”

Part of the Development Agreement includes a comprehensive and generous benefits package that will be directed towards several community initiatives, including: $12 million for projects and programs that address climate change and sustainability; $23.2 million to support infrastructure, and sustainable neighborhoods and communities in Palo Alto; and $4 million for community health and safety programs in the City.

Pursuant to the Development Agreement, $18.1 million in funds will be paid to the City of Palo Alto within 45 days of project approval. In addition, the Medical Center will provide $3.35 million for pedestrian and roadway improvements in order to better link the Palo Alto Transit Station to El Camino Real, Quarry and Welch Roads.

Two further payments of $11.7 million each will be made when the first foundation permit is issued and upon occupancy of the first completed hospital building. Other benefits include substantial funding of transportation measures, including $91 million in Caltrain Go Passes for new and current Medical Center employees in order to offset peak-hour trips for the next 51 years. The Renewal Project is estimated to provide $18 million in taxes and fees to the City as a result of the construction, as well as provide an estimated 2,243 new jobs by 2025.

In order to address potential traffic concerns, the Medical Center has agreed to provide the City of Menlo Park with $3.7 million to be used towards the traffic impact fee and other programs that directly or indirectly lessen the impact of future traffic.

Highlights of the project include:

  • Enlarged Emergency Department that serves both hospitals
  • Additional 144 patient beds at Stanford Hospital & Clinics and 104 patient beds at Lucile Packard Children’s Hospital
  • Improved patient safety, privacy and comfort through individual patient rooms
  • Increased space for families to be with their children during treatment and recovery
  • New surgical, diagnostic and treatment rooms at both hospitals
  • Timely compliance with seismic safety regulations and other code requirements

The Hospitals expect to begin utility improvements and related work in July 2011. Construction of the new facilities will take about six years.

For more information on the Renewal Project, please visit

About Stanford Hospital & Clinics

Stanford Hospital & Clinics is known worldwide for advanced treatment of complex disorders in areas such as cardiovascular care, cancer treatment, neurosciences, surgery, and organ transplants. Consistently ranked in the top tier among "America's Best Hospitals" by U.S. News, it is currently ranked #1 in the San Jose metro area. Stanford Hospital & Clinics is internationally recognized for translating medical breakthroughs into the care of patients. It is part of the Stanford University Medical Center, along with the Stanford University School of Medicine and Lucile Packard Children’s Hospital at Stanford. For more information, visit

About Lucile Packard Children’s Hospital

Celebrating its 20th anniversary in 2011, Lucile Packard Children's Hospital is annually ranked as one of the nation's best pediatric hospitals by U.S. News & World Report, and is the only San Francisco Bay Area children's hospital with programs ranked in the U.S. News Top Ten. The 311-bed hospital is devoted to the care of children and expectant mothers, and provides pediatric and obstetric medical and surgical services in association with the Stanford University School of Medicine. Packard Children's offers patients locally, regionally and nationally a full range of health-care programs and services, from preventive and routine care to the diagnosis and treatment of serious illness and injury. For more information, visit

About Stanford University School of Medicine

The Stanford University School of Medicine consistently ranks among the nation’s top medical schools, integrating research, medical education, patient care and community service. For more news about the school, please visit The medical school is part of Stanford Medicine, which includes Stanford Hospital & Clinics and Lucile Packard Children’s Hospital. For information about all three, please visit

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Media Contact:
Stanford Hospital & Clinics
Shelley Hébert, (650) 814-5611
Executive Director—Public Affairs
[email protected]

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Health  Hospitals  Other Health


The Lucile Packard Children's Hospital expansion balances clinical advancements with the specialized needs of pediatric and obstetric patients and their families. (Photo: Business Wire)