NEWS RELEASE
SAULT AREA HOSPITAL
*************************
SAH Queen Street properties sold
(May 27, 2013) - The Sault Area Hospital (SAH) board of directors has approved the sale of the Queen Street properties to The TVM Group for $65,000.
The land and buildings are being sold as one parcel on an “as is, where is” basis, pending final approval by the Ministry of Health and Long-Term Care.
The closing date for the purchase is expected to be July 16, 2013.
“We were provided with funding for ‘trailing costs’ pertaining to the closure and decommissioning of the old sites, but those funds will be exhausted in a few months, at which time we will incur ongoing costs for maintaining and securing the land and buildings,” said Jamie Melville, SAH board chair. “A guaranteed modest return now is much preferable to potentially significant costs in the near future.”
The land and buildings have officially been listed since July 2011.
While there has been some interest expressed by other potential purchasers, it was contingent on demolition of the old buildings and any related clean up being borne by SAH.
Costs for demolition alone were estimated at between $2.5 and $5 Million.
“As stated in the past, we aren’t developers, nor do we wish to be,” added Melville. “We were hoping for a higher sale price but the economy and market conditions at this time are not strong, especially with other waterfront properties such as the Gateway site and potentially the RYTAC lands also being available.”
Most recently, the North Bay Regional Health Centre sold its MacLaren and Scollard properties/buildings for $5,000 on an “as is” basis.
Significant demolition costs were also cited as the reason for the relatively low sale price.
"The sale of this property will see active development on this premiere site,” stated Sault Mayor Debbie Amaroso. “We will look forward to a project that will complement the immediate area and the city as a whole. There is great opportunity for a unique approach and we look forward to working in cooperation with the new owner."
“We look forward to becoming a member of the Sault Ste. Marie community and bringing some new energy to the St. Mary’s River waterfront,” explained Amit Sofer, president of the TVM Group. “The TVM Group specializes in the redevelopment of surplus buildings, and through creative adaptive re-use of existing structures, we’ve been able to create unique and often fully-accessible residential options. We look forward to the opportunity to revitalize the old hospital sites.”
Based in Toronto, The TVM Group is a multi-faceted property developer that currently owns and manages 25 different properties within the Province of Ontario.
The portfolio includes approximately 600,000 square feet of commercial property as well as close to 600 residential units in Toronto, Peterborough, Port Hope and Cobourg.
TVM’s recent construction projects, community relationships and a partial listing of the existing portfolio can be viewed at this website.
To find out more about Sault Area Hospital, please visit here.
**************************