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Elk Grove City Council Approves Incentive Agreement for 64 New State Jobs

Press Release

Press Release - Elk Grove City Council Approves Incentive Agreement for 64 New State Jobs

Posted: 01/27/2016

California Correctional Healthcare Services to Expand to 317,000 Square Feet, Employ 1,564

The Elk Grove City Council approved an Economic Incentive Agreement between the City and California Correctional Healthcare Services (CCHCS) during tonight’s regular meeting that provides up to $81,088 of Economic Development funds to facilitate the expansion of the State agency in the City.

CCHCS recently executed a lease for nearly 46,000 square feet of additional Class-A office space at Laguna Springs Corporate Center in central Elk Grove. The space is currently under construction at 8220 Longleaf Drive. Upon its completion in March 2017, CCHCS anticipates adding 64 new full-time State office jobs to the soon-to-be 317,060 square foot six-building campus – bringing their total employment commitment in Elk Grove to 1,564.

Recent changes in the provision of inmate mental and physical healthcare services at the State and Federal levels that require additional inmate care have led to an increased need for more executive, medical, and support staff. The expansion provides CCHCS with the ability to eventually increase its Elk Grove workforce to 1,630 employees.

“Partnering with the state and providing incentives to major employers is a smart investment in our City’s future,” said Mayor Gary Davis.  “Agencies like Correctional Health offer the opportunity for good paying, benefited jobs here in Elk Grove. Using the tools we have available, we hope to lure even more state jobs to the city.”

In 2012, the City Council approved a $1.9 million financial incentive for CCHCS and a $1.4 million incentive to Pappas Investments, the owner and developer of the campus.  Today, CCHCS occupies five buildings -- 271,000 square feet of Class-A office space -- in Elk Grove, and is the city’s fifth largest employer.

“Four years ago, Correctional Health employed zero in Elk Grove and now they will have 1,564 positions with capacity for 1,630. That is a remarkable success story. And for every dollar we’ve invested, the developer and Correctional Healthcare have invested $16. By any measure that’s a fantastic return on our investment,” said Darrell Doan, Elk Grove’s Economic Development Director.

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Kristyn Nelson
Public Affairs Manager
916.478.2206 (Office)
916.477.0712 (Cell)

Darrell Doan
Economic Development Director
916.627.3210 (Office)

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