OAKLAND, Calif. (KTVU) - Once it's built in the year 2023, the Kaiser Permanente Thrive Center will be the tallest building in Oakland.
The 28-story, 1.7 million square foot office tower will be Kaiser’s national and regional headquarters at the corner of 21st and Broadway, which right now has some city-owned property - a garage and parking lot used by patrons of the Paramount Theatre.
"At the end of the day, we can think of no better place to stay than Oakland, California," said Bernard Tyson, CEO of Kaiser.
It will cost Kaiser about $900 million to build and Kaiser said because they'll be consolidating from seven buildings in Oakland to just one - they'll be able to save money from the move. It's estimated Kaiser will save $60 million, which they will pass on in the form of better rates for membership, according to Tyson.
Oakland Mayor Libby Schaaf called this a big win for the city. She said a few years ago the city was in danger of Kaiser’s hospital relocating.
Now, they've committed to make their headquarters here for decades to come with this new high rise. She said the city did not offer any tax incentives for this and Kaiser purchased the city-owned land at market rate.
"They're paying their full freight," Schaaf said, adding that this is "really going to be a community project."
Sitting on five parcels at 2100 Telegraph Ave., the plan is to include 60,000 feet of retail space at ground level and for an onsite clinic, as well as an estimated 20,000 square feet of public space for "community-inspired art."
Once the building is built, then Kaiser will move out of the seven administrative buildings it currently owns or leases in Oakland.
Kaiser said 100 percent of the construction work will be done by union labor. Once complete, the tower should contribute more than $15 million annually in local tax revenues.
Bay City News contributed to this report.