Bellevue, Wash.-based PeaceHealth had planned to build the new campus in North Eugene but difficulties arose in acquiring the necessary acreage. The most suitable site turned out to be at a bend in the McKenzie River in northwest Springfield, off Game Farm Road.

PeaceHealth last year paid $34 million for the land that will become Sacred Heart Medical Center at RiverBend. The seller was Arlie & Co., a local real estate development company, which also holds an option to purchase 38 acres in North Eugene that PeaceHealth acquired before switching cities.

RiverBend will consist of a $350-million, 1-million-sf hospital, several related medical and commercial office buildings, housing for 800, parking for 2,000 and a 15,000-sf conference center. The hospital will be built first, by New York City-based Turner Construction, and be completed in early 2007. The rest of the property would be developed over the ensuing 15 years. The City of Springfield is processing the development application.

At PeaceHealth's existing Hilyard Campus in Eugene, some 600,000 sf will be renovated for use as an urgent care clinic, a mental health center and administrative offices. PeaceHealth says future redevelopment of the Hilyard site allows for the addition of up to 400,000 sf of medical and research facilities and the potential for collaboration with the nearby University of Oregon.

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