For more than a decade, the former General Hospital sat vacant on one of Sault Ste. Marie’s most prominent waterfront properties. As the building deteriorated, it became an increasing problem for nearby residents and the City, requiring repeated by-law enforcement, legal action and ongoing attention while preventing the site from being put back into productive use. The scale of the problem was significant: between April and December 2022 alone, by-law officers attended the former General Hospital property 72 times and the neighbouring Plummer site another 36 times.
In 2024, City Council purchased the former hospital properties for $4.75 million so the City could finally control what happened to the site and move it toward demolition and redevelopment. The agreement that followed transferred the former General Hospital property to Green Infrastructure Partners, which assumed responsibility for demolition, while Ruscio Construction purchased the former renal building property for $2 million. The agreements require demolition of the General Hospital, a master plan for redevelopment within 36 months and building permits for new construction within five years.
That structure matters financially. The City had received estimates of up to approximately $6 million simply to demolish the General Hospital. Instead of taxpayers paying that full cost and still being left with an empty site, the deal removes the deteriorating structure while positioning the property for redevelopment and future tax assessment.
City’s hospital purchase best option for future redevelopment
“Mayor Matthew Shoemaker and city council should get kudos for their innovative approach to try to improve the constant eyesore.”
City analysis found the site could accommodate approximately 140 to 422 residential units, depending on density. Staff estimated redevelopment could allow the City to recover its investment over time through increased property tax revenue and ultimately turn what had been a financial liability into a long-term municipal asset.
There is good reason to be confident in the potential for significant residential development. Recent projects including the new Royal Canadian Legion Branch 25 development, One Ten Pim and Trinity Tower have added or advanced hundreds of new residential units in Sault Ste. Marie.
Redevelopment of the former hospital lands would also help restore activity that was lost from this part of the community when the General and Plummer hospitals closed and the new Sault Area Hospital opened on Great Northern Road. The later relocation of PUC from downtown removed another major employer and source of daily activity. A substantial residential development on the former hospital site would bring people back to this part of Queen Street every day, supporting downtown businesses while making better use of one of the city’s most valuable waterfront properties.
The City’s intervention was never simply about demolishing an old building. Demolition was the necessary first step toward solving a longstanding and worsening problem. The next step is redevelopment – new housing, renewed activity and a growing tax base that can help the City recover its investment and turn a former liability into a long-term positive for Sault Ste. Marie.
Mayor Matthew Shoemaker said the conclusion of the demolition will be a welcome sight for the community and those who live near the long-vacant property. “It represents a milestone in returning a derelict waterfront property to productive use.”
A master plan for the site is required within 36 months of the October 2025 agreement between the city and purchaser GIP.