RANCHO CORDOVA (CBS13) — After getting the cold shoulder from Elk Grove, California Northstate University is now looking at Rancho Cordova as a possible site for a new teaching hospital.

On Wednesday, Rancho Cordova officials announced that they had started negotiations with the school.

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No specific location for the hospital in Rancho Cordova has been determined yet, and the scale of the project has not been fully determined. City officials did say that the valuation of the project could possibly reach $1.2 billion.

It would be Rancho Cordova’s first hospital.

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“Building a hospital in Rancho Cordova has long been a desire of the City Council, and we are excited to be exploring that possibility with California Northstate University,” said Rancho Cordova Mayor Garrett Gatewood in a statement.

California Northstate University had been talking with the City of Elk Grove for a hospital site, but the project was met with stiff opposition. Concerns raised included the possible environmental impact to the Stone Lake National Wildlife Refuge, which is near where the hospital would have been built. Others also raised concerns over traffic and noise.

In February, the City of Elk Grove’s planning commission unanimously rejected the plans.

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Rancho Cordova and CNU officials noted that their talks are still in the early stages.