Kaiser cancels plans for Oakland tower
Mayor says facility will remain in Oakland despite project setback
OAKLAND >> Kaiser Permanente has scuttled plans to move its headquarters into a modern office in downtown Oakland, an economic blow for the East Bay’s largest city that could compound the jolts from the coronavirus panic.
“Delays and increasing costs related to this project caused us to re-examine the feasibility and focus on renovating our current buildings,” Kaiser spokesperson Kerri Leedy said in comments emailed to this news organization.
Kaiser didn’t specify the nature of the delays and rising costs.
Amid much fanfare in July 2019, Kaiser and Oakland’s mayor announced that the health care services titan would occupy a $900 million headquarters complex that would have sprouted in the city’s downtown district.
“The decision is not related to COVID-19,” Leedy said.
Now, the Kaiser plans have been shelved for the project at 2100 Telegraph Ave., located at the edges of downtown Oakland’s hip
and bustling Uptown district.
Oakland mayor Libby Schaaf noted that this is a sharp change from what was on the drawing boards just last summer.
“It’s a pivot for Kaiser and one that makes sense for their organization and members at this time,” Mayor Schaaf said.
The 28-story tower would
have totaled 1.6 million square feet and been the largest office building in Oakland.
Despite this setback, the mayor noted that Oakland will remain the headquarters for Kaiser Permanente.
“They’re reinvesting and improving their existing sites across the city, so the most important fact is that they’re staying rooted right here in Oakland,” Mayor Schaaf said.
Lane Partners, the developer of the site at Telegraph Avenue and 21st Street,
must confront the challenge of attempting to land a tenant for the site.
Potentially 8,000 to 10,000 people could work in the office tower at full occupancy.
“Kaiser Permanente appreciates the hard work by the developer and its team on the 2100 Telegraph Avenue project,” Kaiser said in a statement. “We wish them well with the project and look forward to welcoming new neighbors to downtown Oakland when it’s completed.”