St. Elizabeths East Campus Urban Hospital Site Feasibility Study Preliminary Findings, December 2014 TABLE of CONTENTS

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St. Elizabeths East Campus Urban Hospital Site Feasibility Study Preliminary Findings, December 2014 TABLE of CONTENTS St. Elizabeths East Campus Urban Hospital Site Feasibility Study Preliminary Findings, December 2014 TABLE OF CONTENTS SECTION 01. EXECUTIVE SUMMARY 2 Historic Background Vision Of St. Elizabeths East Jobs In The Education And Health Care Industries Combined Review Team Evaluation Process Summary SECTION 02. PROJECT OVERVIEW 7 Project Initiatives Healthcare Needs Proposed Program Resiliency Design Criteria Program Benchmark Projects St. Elizabeths East Master Plan SECTION 03. INITIAL SITE SELECTION 22 Initial Site Selection SECTION 04. SITE RECOMMENDATION 24 Building Data Summary Conceptual Cost Estimate SECTION 05. NEXT STEPS 27 Development Timeline Private Development Opportunities APPENDIX A: EVALUATION PROCESS i APPENDIX B: DUE DILIGENCE REPORTS xxi Due Diligence Report For St. Elizabeths East A. Government Entitlements B. Environmental Reports And Filings C. Geology And Hydrology D. Surrounding Real Estate Development (If Applicable) E. Miscellaneous ST. ELIZABETHS EAST CAMPUS URBAN HOSPITAL SITE FEASIBILITY STUDY PRELIMINARY FINDINGS, DECEMBER 2014 SECTION 01. Executive Summary HISTORICAL BACKGROUND VISION OF An essential element of the Master Plan is ensuring that the redevelopment A National Historic Landmark and local ST. ELIZABETHS EAST efforts incorporate the following Historic District, St. Elizabeths East was stakeholder-driven development The St. Elizabeths East Master Plan established as the first hospital in the objectives: and Design Guidelines, dated June 4, nation for the humane treatment of 2012 (the “Master Plan”)1 function as individuals with mental illness. At one 1. Open up the campus, the outline for the ongoing time, the hospital employed over 7,000 2. Create connections with surrounding redevelopment of St. Elizabeths East. staff members and was the source of communities, The Master Plan contemplates that economic stability for neighborhoods 3. Attract new development, the redevelopment will include a range east of the Anacostia River. The 4. Preserve the historic character, and of end uses, including commercial District has committed to redeveloping 5. Treat existing residents fairly office, educational, retail, and residential St. Elizabeths East into a vibrant mixed- and equitably. uses, as well as the District’s first use campus featuring the District’s first Innovation Hub. Innovation Hub. The Innovation Hub is expected to spur the creation of new The St. Elizabeths East Innovation Hub technology-related businesses and JOBS IN THE EDUCATION is planned to be an integrated center of jobs for all skill levels, which will create research, education and private sector AND HEALTH economic opportunities for residents commercial activities. Success will of Ward 8 and the District as a whole. CARE INDUSTRIES be defined by the District’s ability to The generation of new businesses The education and medical industries co-locate community users, universities, and employment will accelerate the are amongst the largest and most vital technology businesses and technology- diversification of the District’s economy components of the District’s economy. focused amenities (such as business and reduce reliance on the federal accelerators, an innovation market government. The District’s ultimate goal • According to the 2O13 place, and other related components) is to revitalize this historic landmark to Comprehensive Annual Financial that are focused on cultivating once again become a destination place Report2, eleven (11) of the District’s commercial and globally significant for sustainable development that meets top fifteen (15) employers were economic opportunities. the needs of the community. either universities, hospitals or health-care companies. 1 St. Elizabeths East - Master Plan and Design Guidelines: http://stelizabethseast.com/our-opportunity/master-plan/ 2 DC.gov – Office of Chief Financial Officer: FY 2013 DC Comprehensive Annual Financial Report: http://cfo.dc.gov/node/772372 2 ST. ELIZABETHS EAST CAMPUS Section 01. Executive Summary • The educational and health services industries employ an estimated FIGURE 1: BUREAU OF LABOR STATISTICS - DISTRICT OF COLUMBIA UNEMPLOYMENT4 300,000 people in the District. • The Consortium of Universities of Data Series May June July Aug Sept Oct the Washington Metropolitan Area 2014 2014 2014 2014 2014 2014 member activity represents almost Number of Unemployed in, 27.8 27.3 27.5 28.4 28.8 28.7 3 percent of the regional economy, thousands, seasonally adjusted. an $11.3 billion impact. Unemployment Rate Seasonally 7.5 7.4 7.4 7.7 7.7 7.6 In October 2014, the D.C. Department of Employment Services3 reported that the unemployment rate for the District was 7.6 percent, compared to the national FIGURE 2: BUREAU OF LABOR STATISTICS - unemployment rate of 5.8 percent. DISTRICT OF COLUMBIA EDUCATION AND HEALTH SERVICES JOBS However, some Wards in the District Data Series May June July Aug Sept Oct have reached unemployment levels that 2014 2014 2014 2014 2014 2014 are more than twice the regional and national averages. Unemployment levels Education & Health Services 126.9 128.9 128.4 128.4 128.6 129.9 in Wards 7 and 8 stand at 14.3 percent Jobs, in thousands, and 17.0 percent, respectively. seasonally adjusted The health care and educational industries are major job generators. The development of these types These companies have a particular The general scope of services of industries east of the Anacostia concentration in the District itself. In consisted of the team conducting a River would significantly benefit local many neighborhoods of the District, high-level review of United Medical residents and provide jobs where they particularly those along Metro’s Center (UMC) supplied programming are needed the most. Developing a Green Line (which serves as a direct criteria and previous studies, and a new urban hospital would not only link to St. Elizabeths East), hundreds review of site requirements for benefit the goals of the Innovation Hub, of entrepreneurs have formed a similar facilities elsewhere to determine but also bring much needed jobs East technology-based creative class and what constitutes a successful urban of the River. startup culture. hospital site. In addition, the development of a new A combined review group consisting of hospital to anchor the Innovation Hub COMBINED REVIEW TEAM DMPED, Huron Healthcare on behalf of would help drive private commercial The Office of the Deputy Mayor for the UMC for specialized program input, development. The District’s private Planning and Economic Development and the team of CH2M HILL and Perkins sector economy, which now accounts (DMPED) retained the services of CH2M + Will (collectively, the review team) for 88 percent of the region’s jobs, HILL to prepare a planning analysis to studied the site layouts (See Appendix has long been dominated by federal determine the feasibility of locating an A) for the potential of locating an contractors, telecommunications urban hospital and medical ancillary urban hospital on St. Elizabeths East. providers and professional services. uses on St. Elizabeths East as part of a After feedback from the review group In the past five years, however, this mixed-use development. The vision for at multiple workshop sessions and has begun to change dramatically St. Elizabeths East is to create a shared producing variations of the potential as small and growing companies campus for academic institutions, site layouts, the group concluded that focused on education, healthcare, technology and community-based an urban hospital, such as UMC, could e-commerce, cybersecurity and energy services, and an Innovation Hub. be hosted at St. Elizabeths East. have taken root in the District’s region. 3 D.C. Department of Employment Services: http://does.dc.gov/node/184512 4 Bureau of Labor Statistics for the District of Columbia: http://www.bls.gov/eag/eag.dc.htm URBAN HOSPITAL SITE FEASIBILITY STUDY, PRELIMINARY FINDINGS 3 Section 01. Executive Summary FIGURE 3: COMBINED REVIEW PROCESS Review Preliminary Kick-off Draft Study Final Study Round 1, 2, 3 Presentation tend to be much larger, allowing for funding and those that could be EVALUATION PROCESS relatively inexpensive surface parking, delivered entirely by the private sector. optimization of both emergency and This distinction informed building The team of CH2M HILL and Perkins patient or visitor vehicular circulation, placement and massing, distribution + Will was directed by DMPED to and primarily horizontal adjacencies of program, parking strategy, and study all potential locations at the St. among program elements. Urban other design aspects in all of the Site Elizabeths East with no preconceived sites, on the other hand, tend to be Options considered. or predetermined preferences, except smaller and more constrained, requiring for the mandate to keep the main structured parking, vertical stacking The site layouts were presented to the hospital building and tower outside of program elements, and sometimes Review Team and after feedback via the Phase 1 Real Estate Development unconventional vehicular circulation several workshops, Site Option 3e, with RFP5 areas. This study resulted in the strategies. While suburban hospital sites variations anchored by Parcels 13 and analysis of thirteen (13) conceptual often allow optimal functionality and 16, was suggested as the most viable site layouts on four (4) alternative adjacencies, their inherent remoteness site for an urban hospital. It is described parcels of St. Elizabeths East. The site can compromise
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