City approved sale of old hospital site late last year, with plans in place to demolish downtown eyesore

The city’s CAO says agreements to sell off the former General Hospital site are still weeks away from being finalized. 

That message comes months after city council voted unanimously to buy three properties that comprised the old hospital site from both companies for $4.75 million in November of last year.

The city then agreed to sell the former General Hospital building on Queen Street East to Green Infrastructure Partners (GIP) and an adjacent waterfront lot at 10 Lucy Terrace for $1 each, with conditions attached. 

Ruscio Construction bought the former renal building for $2 million.  

GIP committed at the time to begin demolition of the General Hospital building between 30 and 45 days after closing of the sale, with completion of the demolition slated for six to eight weeks later. 

“The city is making positive progress on the agreements and is in the last stages of contract finalization,” City of Sault Ste. Marie CAO Tom Vair told SooToday via email.

“We anticipate signing an agreement within the next few weeks. As soon as the agreement is signed, the city looks forward to sharing the news, next steps, and timeline of the projects in collaboration with the project proponents.”

Vair would not disclose the reason for the ongoing delays when asked by SooToday.

In March, the CAO told SooToday’s Kenneth Armstrong that unsigned contracts were behind the delay in the sale closing and eventual demolition of the former General Hospital building.  

– with files from Kenneth Armstrong and David Helwig