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Central New York Regional Economic Development Council & St. Joseph’s Hospital Health Center Break Ground on $140 Million Phase II Health Center Expansion

(April 20, 2012)

Central New York Regional Economic Development Council & St. Joseph’s Hospital Health Center Break Ground on $140 Million Phase II Health Center Expansion

The Central New York Regional Economic Development Council (CNYREDC) and St. Joseph’s Hospital Health Center officially kicked-off the $140 million second phase of its facility expansion at a groundbreaking ceremony today. As a priority project endorsed by the CNYREDC as part of Governor Andrew M. Cuomo’s Regional Council initiative, St. Joseph’s was awarded a $2.5 million grant to expand its facilities by nearly 200,000-square feet, resulting in the creation of 400 long-term construction jobs and 150 new, permanent health care jobs while also retaining more than 2,900 jobs.

Nancy Cantor, Chancellor of Syracuse University and Co-Chair of the Central New York Regional Economic Development Council said, “This groundbreaking brings to fruition a key proposal of our collaborative, regional economic development plan. We all know that our educational institutions and health care centers—‘Eds and Meds’—are crucial economic drivers. So, this is a great day for St. Joe’s, but at the same time, it’s about much more than St. Joe’s breaking ground—this is a stake in the ground for the critical role that the health care sector will continue to play in Central New York’s economy throughout the 21st century.”

Rob Simpson, President of CenterState CEO and Co-Chair of the Central New York Regional Economic Development Council said, “St. Joseph’s Hospital’s expansion, with its $220 million investment, is a great step forward for a leading Central New York health care institution, which also directly impacts its surrounding community and the regional economy. This region’s hospitals produce $3.1 billion in economic activity each year. The benefits of this project are long-lasting and align perfectly with our strategies for sustainable economic growth. Our ability to support this project with local input is exactly the type of successful outcome we envisioned when Governor Cuomo formed New York’s Regional Councils.”

“We’re pleased to be breaking ground today on one of the largest active construction projects in Syracuse,” said Kathryn H. Ruscitto, president and chief executive officer of St. Joseph’s. “In addition to meeting the healthcare needs of our community, this project also represents an opportunity for significant economic development for our region and serves as a catalyst for revitalization of Syracuse’s near North side.”

State Health Commissioner Nirav R. Shah, M.D., M.P.H. said, “On behalf of Governor Cuomo I congratulate St. Joseph’s Hospital Health Center on this groundbreaking. New York is proud to support this facility expansion that will have a positive impact on economic development in the Syracuse region as well as on the health of the community served by the hospital.”

With construction of 181,100-square feet of new facilities, the groundbreaking of the Phase II expansion project marks a significant milestone in the St. Joseph’s progress on this transformational project. Phase II of the St. Joseph’s Hospital Health Center expansion will construct a 21st Century facility to accommodate today’s state-of-the-art medical technology and ensure patients are both safe and receive the best possible care. It will include the construction and equipping of a 104,000 sq. ft. patient tower, which will have 110 medical-surgical private patient rooms, a PeriAnesthesia Care Unit (PACU), expanded Medical and Surgical Intensive Care Units, and family waiting areas. The expansion will also feature a 73,000 sq. ft. surgical suite with 14 operating rooms, a 12,100 sq. ft. central sterile unit – the area of the hospital responsible for washing, sterilizing and distributing patient care equipment and instruments, and the construction of 72 private patient rooms. In addition, a greenway connection to North side businesses, green space and campus lighting will be added to the North end of St. Joseph’s Prospect Hill campus.

This showcase “green” project is seeking LEED silver certification and aligns with state and national energy conservation goals. Phase 2A and 2B together comprise one of the largest green health care construction projects in the Northeast.

In addition to the 150 new, permanent healthcare jobs being created and the more than 2,900 retained jobs, nearly 90 percent of the 400 long-term construction jobs generated by the expansion project are drawn from a 75 mile radius, providing a strong economic opportunity for local residents and businesses.

Empire State Development President, CEO & Commissioner Kenneth Adams said, “This project is a first-class job creator that will help support healthy communities and a healthy economy in Central New York. Under Governor Cuomo’s leadership, we are seeing innovative public-private partnerships like this spur our economic recovery by building the strong foundation for an economy prepared to grow and last.”

ESD Grant Funds are available for capital-based economic development initiatives that will create or retain jobs; prevent, reduce or eliminate unemployment and underemployment; and/or increase business activity in a community or region. Awards are based on achievement of objectives, which can include job creation or retention, investment, or other measurements demonstrating increased economic activity. Generally, funds are disbursed as reimbursement after project completion, approval by the ESD Directors, a public hearing and Public Authorities Control Board approval, and contract execution.

New York State Senator John A. DeFrancisco said, “St. Joseph’s public-private hospital expansion is an exciting state-of-the art project that will help to transform the North Side of Syracuse, and it will create both short term and long term jobs for Central New York.”

New York State Senator David J. Valesky said, “This project is a win for the entire region, and the CNYREDC and St. Joseph’s should be commended for recognizing the significant benefits it will have for Central New York. Not only will it expand access to quality healthcare for the community, but this project will provide economic development opportunities through job creation and neighborhood revitalization.”

New York State Assemblymember Samuel Roberts said “Economic development and job creation are the driving forces behind getting our region back on track, and this groundbreaking is an opportunity to create not only a diverse workforce of good-paying jobs, but to also bring long-term economic success to our communities. By investing in such vital projects and hiring locally within the region, we are making sure our local businesses have the resources they need to create and maintain essential jobs that hardworking Central New York families depend on.”

Syracuse Mayor Stephanie A. Miner said, “The Central New York Regional Economic Development Council and its leadership showed what we can accomplish as a region when businesses, non-profits and the public sector work together with common goals in mind. Our shared vision made the St. Joseph’s Hospital Health Center expansion a priority and our region will benefit from our commitment to strategically targeting resources.”

Outside of the $2.5 million grant awarded to St. Joseph’s as one of the priority projects of the Central New York Regional Economic Development Council, St. Joseph’s is financing the entire expansion project, which includes the recently completed Emergency Services Building, in several ways. It has received an inducement of $177 million for tax exempt bonding from the Onondaga Civic Development Corporation, a local development corporation recently formed by Onondaga County Executive Joanie Mahoney. The Corporation has the authority to assist not-for-profit organizations that undertake economic development projects by the Onondaga County Legislature. The remainder of the investment will come from hospital reserves, as well as St. Joseph’s Hospital Foundation’s Generations capital campaign.

To learn more about the Central New York Regional Economic Development Council and its strategic plan and projects for economic growth, please visit: http://nyworks.ny.gov/content/central-new-york

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