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Demo deal still alive, despite GIP equipment leaving old hospital site, says mayor

A key piece of heavy equipment has been removed by GIP from the former General Hospital property this week, but city leaders say 'intensive' negotiations are happening

Some heavy demolition equipment that has been sitting unused for nine months at the former hospital site is on its way to another project, but the city's mayor and CAO say this isn't an indication the deal has fallen through.

On Wednesday, a demolition excavator with GIP branding was loaded onto a flatbed truck at the former hospital. Early Thursday morning that piece of equipment left the site.

That same piece of equipment arrived in the winter and has sat unused while the city and GIP have been so far unable to complete negotiations for the purchase of the building.

Mayor Matthew Shoemaker said he understands the equipment is needed elsewhere by the company.

"Despite that, intensive negotiations are ongoing. Demolishing a 100-plus year old hospital is different than buying a new house built on a vacant piece of land. It isn’t quick and easy," said Shoemaker.

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Some demolition equipment that was moved to the old hospital site last winter is now being relocated from the site by GIP. CAO Tom Vair says an agreement between the company and city has not yet been signed. Kenneth Armstrong/SooToday

In November, the city agreed to sell the old General Hospital building for one dollar and some other considerations to GIP, which is expected to pay most of the cost of demolishing the blighted structure. At the same time, it was announced that Ruscio Construction would spend $2 million to buy the old renal building. 

Shoemaker added: "These negotiations have taken longer than any of us want them to, but GFL/GIP is still at the table, and we are down to what should be the final strokes, with everyone working around the clock to get it to the finish line.”

City CAO Tom Vair said the two parties are close to signing an agreement.

"As with any real estate transaction, there is a period of time for the lawyers to close the agreement once signed. So, they’re just using their equipment until they can get back on site to demolish," said Vair.

GIP has not yet responded to questions about the purchase or relocation of equipment.

— with files from David Helwig



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