City gets three proposals for old hospital property

City councillors will be told next week that three proposals have been received for redevelopment of former Sault Area Hospital sites at 995 and 941 Queen St. East and 10 Lucy Terrace.

A selection committee has decided on a preferred proponent, but some behind-the-scenes diligence is being conducted.

"The submission from this proponent requires further clarification on certain components of the submission," says Tom Vair, the city's chief administrative officer.

"Staff aim to conclude these discussions and bring back a report to council at a future council meeting," Vair says in a report prepared for Mayor Matthew Shoemaker and councillors.

"It is anticipated this report will include a recommendation and seek council approval to finalize an agreement of purchase and sale."

The former hospital buildings on the waterfront have been vacant for 13 years.

They include the old General Hospital and the renal building.

In a controversial decision last month, city council voted to buy the properties for $4.75 million after five years of unsuccessful attempts by the city's building standards and legal staff to get the old hospital properly secured and maintained.

Shoemaker told SooToday's Kenneth Armstrong last month that he expects the sale price of the property will be about $2 million, but the city could recover its investment over approximately a 10-year period if a high-density building is put up.

Next week's city council meeting will be held at 5 p.m. on Tuesday, Nov. 12.

Sault Ste. Marie's council meetings usually happen on Mondays, but Nov. 11 is Remembrance Day.

The meeting will be live-streamed on SooToday.