SACRAMENTO (CBS13) — Downtown Sacramento is getting a Kaiser hospital at the railyards site sometime in the next decade.

The site has been the center of promises of a Sacramento Kings arena and other possible development, but city officials say this will bring true transformation to the area.

“Sacramento will be a hub of innovation, entrepreneurship and technology,” Mayor Kevin Johnson said of the plan to build a hospital at the 18-acre site.

The hospital agreed to buy 18 of the 240 acres at the railyards’ northwest corner where the company will build a state-of-the-art hospital. Backers say this will spur more development, including retail, housing and entertainment.

“You’re gonna see big construction going on here over the next couple of years creating thousands of jobs in a real way, you’re talking about over $500 million of construction,” Johnson said.

Kaiser officials say when the facility opens sometime in the next decade, its Morse Avenue location in Sacramento County will be closed.

Developer Larry Kelley says the railyards promise by Kaiser is different than previous overtures. The property is in condition for development, his firm has experience working with this type of property, and he said the timing is right.

“I think it’s a good opportunity for us and capricious timing, sometimes stars align and they come together at the right time,” he said.

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