Sonoma County Indian Health Project Inc. has expanded its plans for a medical campus at the former Kmart property in Santa Rosa as patient needs have grown, but the project for now remains in the waiting room.

The clinic now being considered for 3771 Cleveland Ave. would be about 108,000 square feet, up from 70,000 square feet. Chairman Andy Mejia said the nonprofit is reassessing its proposal amid growing demand for healthcare, rising construction costs and concerns about traffic and access for emergency medical personnel. But the organization has not approved a construction budget or schedule six years after purchasing the site.

“SCIHP remains fully committed to developing the Cleveland Avenue property as its future medical campus,” Mejia told the Journal.

The proposed facility is now about 50% larger than initially envisioned. Mejia said the expanded plan is intended to accommodate the Native American community’s healthcare needs for decades.

“We intend to announce a timeline once the planning process is complete, and we are confident that the plan we approve is the right one for the community,” Mejia said.

The organization acquired the roughly 9-acre property in August 2020 for $12.9 million, according to public records. The former Kmart store was destroyed in the October 2017 Tubbs Fire.

Nearly three years later in June 2020, the nonprofit discussed a two-story, 70,000-square-foot medical office building with Santa Rosa officials. But as of Wednesday no formal development application had been filed, according to city spokesperson Misti Wood.

Spiraling project costs

Mejia said higher costs following the land purchase and a broader project scope prompted further planning. SCIHP also encountered issues involving neighboring development, traffic and reliable emergency access. The organization considered whether buying and renovating an existing building would be more economical than building from scratch.

“All of that has required us to take another look at the project rather than move ahead with a facility that might not adequately serve the community for the decades ahead,” Mejia said.

Existing clinic is out of room

Meanwhile, the nonprofit is running short of room at its main campus at 144 Stony Point Road. Opened nearly 25 years ago, the 45,000-square-foot clinic occupies about 3 acres. SCIHP now leases off-site office space and employee parking across the street, Mejia said.

SCIHP signed a lease May 21 for 12,173 square feet at 141 Stony Circle, across from its main clinic. The Women, Infants and Children (WIC) program was relocated there along with several administrative functions, including parts of information technology, health information management, and billing and coding.

Demand for services rises

The organization now serves nearly 6,900 active patients and records over 130,000 “patient encounters” annually, according to Mejia.

Behavioral health and dental services face especially heavy demand. The behavioral health department receives about 80 new referrals monthly, besides increasing referrals from clinicians and crisis-related needs. SCIHP has added four therapists, expanded telehealth, strengthened care management and nearly doubled behavioral health space by converting offices.

“Patients currently wait approximately four months for routine dental appointments, while pediatric dental appointments have a wait time of approximately seven months,” Mejia said.

Financially, SCIHP reported $65 million in revenue and $39.4 million in expenses for its fiscal year ended June 2025, according to the latest IRS filings compiled by ProPublica. Net assets totaled $144.3 million. In fiscal 2016, the nonprofit had reported $21 million in revenue and $27.6 million in net assets.

Founded in 1971, the organization also operates a satellite clinic in Point Arena. Its member tribes include Cloverdale Rancheria, Dry Creek Rancheria, Federated Indians of Graton Rancheria, Lytton Rancheria, Manchester Band of Pomo Indians and Kashia Band of Pomo Indians of Stewarts Point Rancheria.

Jeff Quackenbush joined North Bay Business Journal in May 1999. Reach him at jeff@nbbj.news or 707-521-4256.