Ontario Construction News staff writer
Sault Ste. Marie’s city council has unanimously approved selling an old hospital site to local developers Green Infrastructure Partners and Ruscio Masonry and Construction Limited.
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 through an interest-free vendor take back mortgage.
The remaining site will be demolished by Green Infrastructure Partners or an affiliated company for $1. Demolition must happen within 30-45 days after the sale closes and the city will waive tipping fees at the landfill and pay $221,000. In-kind services the public works department will support the future residential development 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 has been vacant since 2012 and was purchased by an out-of-town developer.
In October, the city purchased 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.
“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,” said Councillor Lisa Vezeau-Allen.
The property is zoned for a mix of residential and commercial uses.
“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,” said Mayor Shoemaker. “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.”
