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Delays continue for demolition of old hospital

'The agreement of purchase and sale is being finalized,' says CAO Tom Vair
20241203gipdemolitionoldhospitalka
GIP-branded heavy demolition equipment on-site of the former hospital.

The city's CAO says unsigned contracts are behind a delay in the sale closing and eventual demolition of the former General Hospital building.

In November, the city 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.

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

GIP committed at the time to begin demolition between 30 and 45 days after closing of the sale and completion of the demolition six to eight weeks later.

Various pieces of GIP-branded demolition machinery have been on the former General Hospital property since November. Although some prep work is being completed by GIP workers, the demolition work won't begin until the sale closes.

"The city continues to work with GIP to finalize their contract. GIP crews remain in the building and continue to prepare it for demolition," said CAO Tom Vair in an email.

"The agreements with both parties will be signed once all parties have agreed on terms. Once the contracts are finalized, we will communicate with the public on the demolition schedule."

Asked in a follow-up if the sale has closed, Vair said it has not.

"The agreement of purchase and sale is being finalized. Once the agreement is signed, a closing date will be determined," said Vair.

SooToday reached out to GIP on Wednesday about the delay but did not receive a response before the story was published.

Peter Tonazzo, the city's director of planning, said no plans have crossed his desk for either the former General Hospital site purchased by GIP, or the former renal building sold to Sault Ste. Marie-based Ruscio Masonry and Construction Ltd. for $2 million.

"At this point, we have not received any plans or had any pre-consultation on either the old General or Renal buildings," said Tonazzo.



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