Sault Ste. Marie sells former hospital site to local developer

The efforts continue to turn the old hospital site on Sault Ste. Marie's waterfront into a new project that will feature housing and businesses and tax revenue for the city.

City council voted unanimously on Monday night to sell the old hospital site to local developers, Green Infrastructure Partners and Ruscio Masonry and Construction Limited, with a few conditions.

The property is divided into three parts. The former Renal building will be sold to Ruscio Construction for $2 million, which will be paid by the company in instalments of $400,000 over five years interest-free, by way of a vendor take back mortgage.

The other two parts will be demolished by Green Infrastructure Partners or an affiliated company for $1. Demolition has to take place within 30-45 days after the sale closes. The city will waive tipping fees at the landfill and will support the demolition with $221,000. In-kind services from public works to support the future residential development will be provided up to $190,000.

"We have the potential to make upwards of a million dollars a year in new tax revenue to pay for things that people want like better parks, better roads or police officers, better city services," Mayor Mathew Shoemaker said.

"These are things that we aren't going to get unless we take the initial step to see it redeveloped because if we let it sit for longer, it's just going to stay in the state of repair that it is currently in."

The property became vacant in 2012 and was purchased by an out-of-town developer. Since then, it has sat empty with many broken windows, frequent break-ins and hundreds of visits by police and bylaw officers.

In October, city council voted to purchase the site for $4.75 million. At that time, Mayor Shoemaker told CBC News that council believed the city could sell it for between $2 and $2.5 million.

Potential for $1M in annual taxes

At the meeting on Monday night, councillors expressed their support for the project.

Councillor Lisa Vezeau-Allen said the property has become a "blight" in the community.

"It's something we've heard about weekly probably since I've been elected. Also, living in the neighbourhood, I experienced it weekly," she said.

"I am feeling confident that we have two local folks and families that are committed to our community. We've endured lots of difficulties with out of town developers that aren't adhering to what they say they're going to do."

No plans have been released on what form the developers will take on the project, but it is zoned for a mix of residential and commercial development.

Mayor Shoemaker said he's pleased the project is moving forward.

"It's all happening, I think, much quicker than any of us would have expected it to, much quicker than any of us would have hoped," he said.

"I'm strongly in favour of supporting this and believe that the cost to do nothing is greater than the cost that we're spending today."