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The Proposed New Hospital

Northern Arizona Healthcare is proposing to build a new hospital in Flagstaff at a location just north of Ft. Tuthill. F3 has multiple concerns related to both the new hospital campus as well as future use of the existing campus. These concerns are outlined clearly in the following Coconino Voices editorial written by F3's Executive Director and published in the Arizona Daily Sun.

Links to additional information about the hospital's request for approval of the specific plan and rezoning request, as well as upcoming Public Hearing dates and how you can share your concerns with the City, are provided below this editorial.

Coconino Voices: F3 concerned with financial costs to community for proposed new hospital

March 9, 2022

Michele James

Friends of Flagstaff’s Future (F3) is concerned about the financial impacts to the Flagstaff community for the proposed Northern Arizona Hospital (NAH) relocation. In 2021, NAH announced their desire to build a new regional hospital and adjacent “health & wellness village” just north of Fort Tuthill. 

NAH is nearing completion of the required City applications for Phase 1 of the project which includes rezoning of 98 acres to allow for the building of a new ambulatory center and a 751,000 sq foot hospital that includes a tower up to 160 feet in height. Phase 2 of the project will come later and is composed of rezoning for the adjacent “health and wellness village” and for 270-315 dwelling units, as well as commercial and industrial/research uses.

As a part of the City’s process, NAH is required to complete a specific plan, and a Development Agreement that will outline NAH’s financial commitments to the City to pay their fair share of the related infrastructure costs associated with building the hospital in this location. 

It’s our view that, in order to qualify for rezoning approval by City Council, NAH must make significant written financial commitments to the City in their Development Agreement to pay a fair share of costs related to the placement and operation of the proposed hospital in this location (Phase 1) and “wellness village,” etc. (Phase 2). Financial commitments from NAH must be in alignment with the City’s requests and needs, and should not unduly impact City finances or be a burden to the tax-paying public. 

Infrastructure costs for a new hospital in this location include the $45M dollar road widening of Beulah Ave. south of University Heights Dr. to the JW Powell bridge (the City & NAH are hoping to receive a Federal grant to cover all of this cost), and a very significant expansion of City Fire services required to adequately fight a fire in the (up to) 160-foot tall hospital tower (note: the tallest building in Flagstaff currently is about 85 feet).

The Fire Chief recently told City Council that necessary City Fire service coverage requires the purchase of a taller ladder truck and a new fire station to house this ladder truck for $9.5M, an additional $2.4M in related operations and maintenance, as well as an unreported dollar amount for twelve or more additional EMS and other personnel needed on a daily basis.

The proposed new hospital is located within an Urban Activity Center, and, according to Flagstaff’s Regional Plan, the provision of public transit is required. F3 was therefore surprised to learn in December that NAH has chosen not to provide funding for a reasonable portion of the $1.2 million annual costs for a new public transit route.

The City must provide equitable access to healthcare, including for those without a vehicle. In addition, Flagstaff’s commitment to reach carbon neutrality in seven years time requires the increased use of public transit and multi-modal transportation to reduce Vehicle Miles Traveled and carbon emissions. Public transit to the proposed new hospital must be provided.

Beyond commitment to infrastructure costs, F3 wants to see NAH commit to design, build, and operate the hospital and ambulatory center in a manner that aligns as closely as possible with Flagstaff’s Carbon Neutrality Plan. And, F3 wants a written commitment to fund and produce a community-driven plan for the re-purposing and redevelopment of the existing hospital campus that ensures benefits to the Flagstaff community. 

The proposed hospital move and associated development on NAH-owned land would be the first of what will be significant development in this area (and is in alignment with our Regional Plan). The City of Flagstaff has no mechanism in place to spread the costs of growth to other developers who will build in the adjacent areas in the future.  We understand that this is a significant limitation and a systemic issue with the City’s current means of managing growth.  Nevertheless, we don’t believe it should fall to taxpayers to pay for the public infrastructure costs. 

The decision by NAH to not fund a reasonable portion of the public transit costs increases F3’s concerns that NAH may not commit to paying a reasonable and significant portion of the other necessary costs of this project. We don’t want to see Flagstaff citizens burdened with more than $57M in public infrastructure costs as a result of the hospital move. 

The Flagstaff Planning and Zoning Commission will hold a public hearing on Wednesday, March 22, 2023, at 4:00 pm at City Hall Chambers (211 W. Aspen Ave.) and Wednesday, April 12, 2023, at 4:00 pm at the City of Flagstaff Aquaplex Community Meeting Room (1702 N 4th St.). 

The public hearings are to consider the adoption of a Specific Plan for the development of 172.62 acres, and a proposed amendment to rezone 63.18 acres from Rural Residential (RR) and Estate Residential (ER) to Highway Commercial (HC) and 35.21 acres from RR and ER to Public Facilities (PF). The Specific Plan and Rezoning will allow for the development of a new regional hospital and ambulatory care facility and support a larger Health Village and a broad mix of commercial, retail, research, and housing opportunities in a future rezoning.

Michele James is Executive Director of Friends of Flagstaff's Future

Scheduled Public Hearing Dates

Planning & Zoning Commission

The Flagstaff Planning and Zoning Commission will hold a public hearing on Wednesday, March 22, 2023, at 4:00 pm at City Hall Chambers (211 W. Aspen Ave.) and Wednesday, April 12, 2023, at 4:00 pm at the City of Flagstaff Aquaplex Community Meeting Room (1702 N 4th St.). 

The public hearings are to consider the adoption of a Specific Plan for the development of 172.62 acres, and a proposed amendment to rezone 63.18 acres from Rural Residential (RR) and Estate Residential (ER) to Highway Commercial (HC) and 35.21 acres from RR and ER to Public Facilities (PF). The Specific Plan and Rezoning will allow for the development of a new regional hospital and ambulatory care facility and support a larger Health Village and a broad mix of commercial, retail, research, and housing opportunities in a future rezoning.

Submit your comments and concerns about the proposed hospital to the Planning and Zoning Commission prior to March 22 here: CDPandZCommission@flagstaffaz.gov

The public can attend (in person) both the March 22 Public Hearing at City Hall Chambers and the April 12 Public Hearing at the Aquaplex, where you should be able to make a public comment. You can join the Microsoft Teams meeting and attend the Hearings remotely here, where you also should be able to make a public comment. The Public Hearings can be watched live on the City's website here (“live” or “live conference room” tab).

Flagstaff City Council

The Flagstaff City Council has not yet scheduled the two required public hearings. F3 will post those dates here as soon as they are released to the public.

Documents related to the proposed hospital

1) The NAH Specific Plan and Combined Application Narrative can be viewed on the Aspey, Watkins & Diesel website

2) According to the City of Flagstaff, NAH has not yet finalized their Development Agreement (DA) and a draft has not been released to the public. This is the document where NAH should disclose their financial commitments to share in the cost of important infrastructure such as Fire Services and road widening. F3 will post a link to the DA here as soon as it is released.

3) The City of Flagstaff is expected to release their Staff Report on March 17th. F3 will post a link to this report here as soon as it’s released.