Penn Health gets $10M for new project

The University received a generous donation from the state yesterday toward its goal of redeveloping the land on the west side of the Schuylkill River between University Avenue and Spruce Street.

Gov. Ed Rendell announced a $10 million grant to the University earmarked for the Riverview Project, which is set to enter phase I later this year.

The project is a multi-year undertaking by the University of Pennsylvania Health System to build a 2 million-square-foot clinical and research facility. Upon completion, the complex will house a state-of-the-art cancer center, outpatient care for the Hospital of the University of Pennsylvania and a cardiovascular treatment center.

"When all four phases are complete, all outpatient care will be in this new building," said Susan Phillips, chief of staff for the School of Medicine. "That's the ultimate goal."

The first phase of the project is under way, and the University is in the process of acquiring several of the buildings, including the abandoned Civic Center on University Avenue and the Commerce Museum, located behind the University Museum of Archaeology and Anthropology. University officials expect to complete the transactions with the city in the coming days.

The grant is part of nearly $78 million that Rendell set aside yesterday for projects in Philadelphia. The money comes from the state's Redevelopment Assistance Capital Program, which is a $640 million fund approved by the legislature earlier this year for programs that are designed to jump start Pennsylvania's economy and promote job growth.

"We are projecting that we will have over 41,000 new jobs, in addition to new revenue for the city and state in income and sales tax," said Kevin Ortiz, spokesman for the state Department of Community and Economic Development.

In addition to the $10 million grant, the University has put aside $22 million this year and plans to add another $27 million next year for phase I, which is projected to cost $128 million and be completed over the next three and a half years. Phase I will attempt to move much of the outpatient services from HUP, and redesignate the space -- nearly 30 percent of the overall building -- to the treatment of more serious illnesses.

Eventually, the facility will serve as a training site for 600 medical students and more than 1,000 resident physicians.

"This [project] is a major step forward for Penn," UPHS Health System CEO Ralph Muller said. "It will give us a chance to upgrade our facilities in a way that we haven't in a very long time."

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