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Business Journal: Dignity Health Elk Grove Hospital Plans Shrink; Downtown Property Gets New Owners; Former Barbecue Franchisee Closes Restaurants

Andrew Nixon / Capital Public Radio

Andrew Nixon / Capital Public Radio

Dignity Health Scales Back Elk Grove Hospital Plans

Dignity Health is scaling back plans for what was once envisioned as a 520,000-square-foot hospital in Elk Grove.

For years, the San Francisco-based health system has been planning to build a hospital on a 28-acre property it owns just east of the intersection of Elk Grove Boulevard and Bruceville Road.

The Sacramento Business Journal’s Sonya Sorich says it was expected to have at least 330 beds, with options for expansion. Now, those plans have been trimmed down to a 100-bed proposal.

“This project was introduced more than a decade ago, and since then, the health care system has significantly changed,” Sorich said. “In addition to rising costs, health care delivery is going beyond the traditional model of arriving at the emergency room when you're sick.”

Instead of building a large campus in Elk Grove, Dignity wants to focus on ways for patients to receive care outside of the hospital. That could include urgent care centers and virtual doctor visits, among other things.

The smaller hospital's design is still in the planning stages, and those plans need to receive the necessary approvals. Once those plans are complete, it could take five to seven years to finish the hospital.

“And it's worth noting that the site isn't entirely vacant,” Sorich said. “In 2012, Dignity opened a medical office building on the property.”

New Ownership In Downtown Building

A four-floor property at 830 K Street has new ownership.  

A Bay Area group purchased the building located in a redeveloping part of downtown Sacramento for $5.5 million.

Sorich says the building was built as a Montgomery Ward location, but it hasn't had tenants in more than a decade.

“The new owners are still finalizing plans for its future, but we'll likely see office and retail uses,” she said.

Sorich says the buyer is an investor group that wanted to take advantage of tax breaks for opportunity zones created under the 2017 federal tax law. Opportunity zones are designated by the federal government. They're census tracts with comparatively higher concentrations of poverty.

Investors can put money into those areas, either in the form of real estate developments or operating a business, and avoid capital gains taxes if they hold onto the investment for a decade. 

Former Dickey’s Barbecue Pit Franchisee Closes Restaurants

A former Dickey's Barbecue Pit franchisee who rebranded those restaurants into his own concepts has apparently closed all his locations.

Jared Katzenbarger previously rebranded his former Dickey's restaurant in Midtown Sacramento into an original fast-casual concept called Jyros Twisted Gyros. A sign at that location confirms it has permanently closed.

And late last year, the same former franchisee said he would rebrand his remaining Dickey's sites into an original concept called Side Burn BBQ and Brew.

“The website for Side Burn lists seven locations,” Sorich said. “When we visited those sites, five displayed a sign that says the business had to close indefinitely. The other two didn't have a sign, but were repeatedly closed during regular business hours.”

Katzenbarger didn't respond to messages seeking comment.

The closures come amid a legal dispute between the former franchisee and Dickey's.

“That dispute is ongoing, Katzenbarger's attorney told me last week,” Sorich said.

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