The Tulare Tower
Hospital Tower Moves Toward Completion
Tulare’s Hospital Tower represents a longstanding investment in local healthcare. The Tulare Local Healthcare District is advancing plans to complete and open its first two floors, bringing modern emergency care, medical imaging and surgical services to the community.
The District has begun a preconstruction phase, with Seals Construction and RBB Architects undertaking approximately 18 weeks of detailed planning. Their work includes verifying existing conditions, coordinating building systems, developing cost estimates and addressing technical and regulatory requirements. This work builds on smaller projects that have maintained the building’s active permit and advanced key systems and infrastructure.
Once preconstruction is complete, the District plans to issue a Request for Proposals for a General Contractor. Construction is expected to take 12 to 18 months, subject to the final scope, bidding and regulatory approvals. The first floor will house an updated Emergency Department and modern medical imaging services, while the second will feature state-of-the-art surgical suites. These improvements will expand Adventist Health’s capabilities as our hospital operator and support its efforts to recruit additional physician specialists to serve our community.
The Tower will meet California’s January 1, 2030 seismic requirements and the District is also evaluating the broader hospital campus to determine the work, scope and costs needed to bring existing buildings into seismic compliance.
For a community that has waited years for the Tower to open, this is an important step forward. The District is proceeding in phases, carefully managing available resources and prioritizing improvements that support essential healthcare services. The goal is clear: complete these two floors and put Tulare’s longstanding investment to work for the community for decades to come.
The completion of the Tower is a critical priority for ensuring the hospital's compliance with earthquake safety standards mandated by the State of California. With the deadline set for January 1, 2030, it's imperative for the Tulare Local Healthcare District to expedite the completion of the Tower to meet these regulatory requirements.
The estimated cost is $100 million for completing the entire Tower.
Focusing on key areas such as surgical suites, emergency services, and medical imaging aligns with ensuring that the Tower project addresses the most pressing needs of the community. By prioritizing the completion of the first and second floors for approximately $35 million, the District can efficiently allocate resources to areas that have the greatest impact on patient care and outcomes.
Option 1 - Use of District Funds and Revenue: The District is utilizing all existing resources available in order to avoid asking for public assistance. At this writing, the District has approximately $20M in cash and investments and a commitment from Adventist Health for a $15M loan. We believe this may be enough to complete the first and second floors of the tower. Actual costs will depend on bids from general contractors due in the coming months.
Option 2 - General Obligation Bonds: Seeking approval from the voters in the District to issue GO Bonds is a significant decision that involves community participation and support. This option provides a potential avenue for securing additional funding needed to complete the Tower.
- Hospital Stability: Physicians seeking to relocate are more likely to choose a community with a stable hospital environment. The completion of the Tower and the commitment to maintaining and upgrading infrastructure signal stability and a long-term investment in the healthcare system, which can be appealing to prospective physicians.
- State-of-the-Art Facilities: The state-of-the-art operating rooms in the new Tower offer significant advantages compared to the current facilities. These modern amenities can accommodate more complex cases and provide a better working environment for physicians, ultimately enhancing patient care and satisfaction.
- Attraction of Newer Buildings: Physicians are often drawn to newer buildings with modern amenities. The upgraded facilities in the Tower can make their jobs easier and more satisfying, contributing to a positive work environment and potentially attracting more physicians to the community.
This resolution provides the District with valuable flexibility in addressing the financial needs associated with the Tower project.
The ability to replenish cash spent on the Tower through Revenue Bonds, without a strict requirement to do so, offers the District a degree of financial maneuverability. This flexibility allows the District to manage its financial resources more effectively while still pursuing the completion of critical infrastructure projects like the Tower.
As the District evaluates its financing options and considers the best approach to meet its objectives, the flexibility provided by Resolution 920 becomes a key factor in the decision-making process. This flexibility enables the District to adapt its financial strategy based on evolving circumstances and priorities, contributing to more informed decision-making and strategic planning.