SACRAMENTO (CBS13) – Kaiser Permanente has agreed to purchase a part of the Sacramento Railyards to build a new hospital, the organization announced Thursday.

Ron Groepper, Senior Vice President and Area Manager of Kaiser Permanente Sacramento, said in a statement about 18 acres of land are involved in the potential deal.

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A hospital is planned for the site, but no immediate construction plans have been detailed.

“We are excited about the potential that this land holds for a new hospital and are looking forward to completing the due diligence and entitlement work that is already underway,” Groepper said in the statement.

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Officials have been trying for many years to breathe new life into the rail yards. Recently, the site was floated as one of the possible areas to build a new sports arena before the Sacramento Kings settled on a downtown location.

“I have worked for a number of years to ensure the site can be transformed into a thriving urban community and am pleased that this vision is finally taking shape,” said Congresswoman Doris Matsui in a statement praising Kaiser’s plans.

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Kaiser also recently bought a 195,000-square foot building in downtown Sacramento. They plan on using the space as a medical office building.