Construction will begin in late March on a second tower at the Methodist Mansfield Medical Center campus, the Methodist Health System said Thursday.
With the announcement came more details about the project, which is part of a tax-rebate agreement that the City Council approved early last week.
Mayor David Cook said the March date is for the official groundbreaking and that construction could start much sooner.
The new patient tower and expansion of acute-care support services would cost $118 million and be completed in late 2015, according to a press release from the hospital system.
The 110,000-square-foot tower would be attached to the northwest side of the existing building and look like the existing patient tower from outside. It will have 34,000 square feet of additional operating rooms, cardiology and gastroenterology services and 64,000 square feet of additional support services such as lab and sterile processing.
“This expansion will equip us with the ability to meet the needs of our growing community population, allowing us to be the trusted provider for every generation,” John Phillips, president of the Mansfield hospital, said in the statement. “Many people came together to make this vision a reality.”
The new patient tower is part of a broader economic development agreement that includes the hospital’s next major project – construction of a second medical office building – and the city’s relinquishing ownership of Hospital Drive, which runs the length of the hospital along its south side.
The office building would be built on hospital property on the south side of the road.
The contract requires that construction on the office building, which will look virtually identical to the existing 90,000-square-foot building, begin by the end of 2016 and opens for tenants by the end of 2017.
Under the agreement, the city would rebate to the hospital up to $200,000 of property taxes on the office building. The patient tower would not draw property taxes because it would share the hospital’s non-profit status.
City Councilman Cory Hoffman said the loss of that city tax revenue would be more than made up for by the hospital’s expanded services and its continuing ability to draw more medical facilities to Mansfield.
“I think it’s been a boon for the city,” Hoffman said, citing the arrival of several urgent-care clinics and medical practices. He said the health-care industry is “realizing Mansfield is on the map, and they’re trying to get a piece of the pie.”