Kaiser Permanente Agress To Buy 18 Acres At Sacramento Railyards, Plans New Hospital

SACRAMENTO (CBS13) – Kaiser Permanente has agreed to purchase a part of the Sacramento Railyards to build a new hospital, the organization announced Thursday.

Ron Groepper, Senior Vice President and Area Manager of Kaiser Permanente Sacramento, said in a statement about 18 acres of land are involved in the potential deal.

A hospital is planned for the site, but no immediate construction plans have been detailed.

"We are excited about the potential that this land holds for a new hospital and are looking forward to completing the due diligence and entitlement work that is already underway," Groepper said in the statement.

Officials have been trying for many years to breathe new life into the rail yards. Recently, the site was floated as one of the possible areas to build a new sports arena before the Sacramento Kings settled on a downtown location.

"I have worked for a number of years to ensure the site can be transformed into a thriving urban community and am pleased that this vision is finally taking shape," said Congresswoman Doris Matsui in a statement praising Kaiser's plans.

Kaiser also recently bought a 195,000-square foot building in downtown Sacramento. They plan on using the space as a medical office building.