New hospital expected to draw more development
BY PETE SKIBA Florida Weekly Correspondent

FLORIDA WEEKLY GRAPHIC

The new $285-million Gulf Coast Hospital at Daniels and Metro parkways is expected to attract a lot of new commercial development in the next few years, real estate professionals said.

"There is in excess of 75-acres south of Daniels to Six Mile Cypress Parkway east and west of Metro that is convenient to the hospital," said Gary Tasman, executive director, Cushman & Wakefield of Florida Inc.

The land could be developed as physician's offices, restaurants, banks, insurance company offices convenient to the hospitals employees.

"I'd say the potential is there for four times as many jobs in the area as the hospital has," Tasman said.

Considering that the hospital could employ 1,800 when finished, said Michael Polito, Lee Memorial's director of strategic workforce planning that's a lot of jobs.

Five buildings under the banner of CB Richard Ellis offer commercial space south along Metro Parkway about 200 yards from the hospital, said Randal Mercer, a founder of the company's local business.

The base leasing costs in the area range from $17.50 a square foot to $19.50 a square foot, Mercer said.

"We have about 72 percent occupancy in those buildings, with space of about 52,000

square feet," Mercer said. "We have two more lots for buildings permitted for commercial development. This area grew exactly from the construction of Gulf Coast Hospital."

Allstate insurance, Raymond James & Associates investments, general contractors and other businesses have moved into the buildings owned by Mercer and other investors. The physicians won't be far behind.

"I think the doctors are waiting to see what kind of specialties would be best offered at the hospital," Mercer said. "Once they decide that their specialty is needed, they'll get offices."

The previous owner of Gulf Coast Hospital, Hospital Corporation of America began construction in 2006. Construction continues after Lee Memorial Health System purchased Southwest Florida Regional Medical Center, Gulf Coast Hospital, 123 acres and several medical buildings in 2007 for about $535 million including the cost of construction.

Already 60 percent complete, plans call for the hospital to be finished in the spring of 2009.

The housing construction decline in Lee County has not affected commercial construction, said Michael Reitman, executive vice president of Fort Myers' Building Industry Association.

There are about 400 construction workers employed with the general contractor, Skanska, and the various sub-contractors involved in the hospital construction, said Tracy Hunt, project executive with the Swedish-based construction company.

"There is a ripple effect when a large anchor project like the hospital is built," Tasman said. "It has the effect of expanding commercial building in the whole area."

The decision to rebuild the hospital resulted in financial savings. It became less expensive to expand at the Gulf Coast Hospital site than to try and bring the antiquated Southwest Regional Medical Center up to date, said Eric Anderson, senior project manager for Lee Memorial.

"We are building a state of the art facility," Anderson said. "To bring the Southwest regional building up to code it would have cost us twice as much as building the new hospital."

A planned widening of Metro Parkway will give easier access to the hospital and the businesses in the area. Lee Memorial advanced as much as $15 million of the $21-million cost toward the road widening project. Completion of the road could be 2010, Florida Department of Transportation officials estimated.

"The consolidation of the two hospitals will make it easier for EMS (Emergency Medical Services) to avoid delays and more convenient for patients," Luckett said. "(The hospital) will be the most modern facility to the area."

When completed the newly built and renovated hospital plans to move staff from Southwest Florida Medical Center. It will close. No plans have been finalized for the empty building.

As befits a new hospital, it will probably be given a new name when finished, but no name has been selected. The new facility wraps around the current Gulf Coast hospital building.

The completed hospital will have nearly 13 acres under roof and house 349 private patient rooms, 22 operating rooms, an emergency department with 28 exam rooms, 10 observation areas and five trauma rooms.

The emergency department will be able to examine twice the 46,000 cases it normally treats a year. Thinking ahead to the growing population of Lee County, the new hospital's design allows three floors to be added to the four-story building if necessary.

Necessity always means planning with hurricanes in mind. Category 5 hurricane winds of up to 156 mph won't faze the hospital's new construction.