Stillwater: Lakeview Hospital submits concept plan review for $400M expansion

The Stillwater City Council on Wednesday will get its first in-depth look at plans for the new estimated $400 million Lakeview Hospital campus at the northeast corner of Minnesota 36 and Manning Avenue.

HealthPartners has submitted a concept plan review request to the Stillwater City Council for the 64-acre hospital campus. The new hospital, which is expected to open in late 2027 or early 2028, will include emergency medicine, advanced critical care and specialized centers for heart, cancer and orthopedic care.

The council will not take formal action on the proposal, but instead will be asked "to support the site layout and building size and give general feedback on some of the proposals," City Administrator Joe Kohlmann said. "This is kind of the first run."

The hospital is proposed to be 104-feet tall; an architect's rendering of the building shows it to be six stories tall. That height exceeds current zoning limits – three stories in a public-administration district – so council members will be asked to assess if the height is appropriate for the area, "considering potential visual impacts and any available flexibility with a planned-unit development or height-transition strategies," according to a staff memo included in this week's council packet.

Another potential issue: The proposed site access from Manning Avenue North and the realignment of 62nd Street North is inadequate and does not meet previous goals outlined by previous studies and the 2040 Comprehensive Planning efforts, according to the staff report. Council members will be asked to "examine site access points and road improvements, particularly the proposed realignment of 62nd Street North," according to the staff memo. "Ensure that access points support safe and efficient traffic flow for the hospital and surrounding areas, and review any traffic studies related to neighborhood impact."

The concept plan is for review only, not formal approval, Kohlmann said. "Part of the concept review is to flesh out some of these details," he said.

HealthPartners will return to the council for formal approval at a later date, he said.

The new Lakeview Hospital will be a major upgrade from Lakeview's current 97-bed hospital, which has been located at the intersection of Churchill and Greeley streets, near Lily Lake, since 1961. The hospital employs about 1,100 people.

The new site will give the hospital room to expand and greater visibility, according to Lakeview Hospital officials.

Lakeview purchased the land in 2017, but put its expansion plans on hold just two years later.

The new campus will include a 400,000-square-foot facility, 935 parking stalls, sustainable landscaping, trails and open spaces that connect to local systems, promoting interaction with the natural environment, Lakeview officials wrote in the project narrative.

Access points are proposed at Manning Avenue and 62nd Street North with a realignment of 62nd Street North to improve neighborhood connectivity. "An enhanced entrance drive into the campus will create a welcoming and intuitive path for patients, visitors and staff," according to Lakeview officials. "Realignment of 62nd St. N. will tie into the campus entrance road to create a downplayed access to the neighborhood. Necessary intersection improvements will be incorporated to support traffic from the campus and neighborhood."

"We want a site plan that works for everybody," Kohlmann said. "We're excited to work with HealthPartners, and we look forward to this major investment in the community."

Kohlmann said he did not know what would happen with the current Lakeview Hospital building.

The hospital will be constructed using quality exterior materials, including stone, brick veneer, aluminum and glass curtain wall systems, and metal panel systems, Lakeview officials wrote.

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The property is currently zoned agricultural preserve, and Lakeview officials will be requesting the subject property be rezoned to public administrative offices district and be developed as a planned unit development (PUD) project, according to Lakeview officials.

An environmental assessment worksheet also is being prepared and will be submitted as part of the project proposal, they wrote.

If approved, HealthPartners is planning to start construction on the new campus for Lakeview Hospital in the second quarter of 2025.

The Stillwater City Council is meeting Wednesday night this week instead of Tuesday because of Election Day, Kohlmann said.