Sault Ste. Marie city council talks tough with owner of 'eyesore' hospital properties

Sault Ste. Marie city council is looking to take action against the owner of an old hospital property that's become an eyesore in the northern Ontario city. 

There have long been plans to redevelop the former General and Plummer hospital sites on the downtown riverfront. But in recent years, the sites have become more known for broken windows, frequent break-ins and hundreds of visits by police and bylaw officers.

"It's a major issue that exists in the whole city of Sault Ste. Marie," Italo Ferrari, the general manager of Leisure Meadows Community Living, told city council Monday night.

"And we as investors coming from out of town and investing in your great city, I am personally making that problem mine as well. I'm concerned about the well-being of the community."

Ferrari said his company bought the old hospitals three years ago, just after the city issued building code orders against the previous owners, TVM Group.

"We have inherited this problem from previous owners. We have continued in cleaning it up," he said. 

"We are doing everything possible."

'Business of making money'

Several Sault Ste. Marie city councillors asked Ferrari if he considered the property an eyesore and he called it an "unfair question" and inaccurate to say a property owner is negligent just because of a few broken windows.

"I have millions of dollars invested in that property," Ferrari said. 

"We didn't buy this property just to have it. We're in the business of making money."

Several times during the hour-long exchange, Ferrari told council that his company has applied to the provincial government to convert some of the old hospital into a long-term care home and other parts of the sprawling 16-acre, 300,000 sq. ft. complex would be turned into rental apartments.

But city councillors like Sonny Spina were not convinced.

"Is it fair to say you don't have a plan?" he asked.

"Don't put the word in my mouth. Yes I do have plans. It's my property. I maintain my property," Ferrari answered.

Councillor Corey Gardi took particular exception with Ferrari's claim that the main problem was the addiction crisis in Sault Ste. Marie. 

"Forgive me Mr. Mayor, but I'm not going to let this guy walk in here and tell us that our community is the problem. The problem is the state of disrepair of this facility," he said. 

"I don't know how personally interested I am in you coming into the community and investing in it."

'Council will do what it has to do'

Mayor Matthew Shoemaker ended the session with a series of questions about how much Ferrari is spending on security and why he doesn't move ahead with developing the property. 

"I think the general conclusion that we've all come to is that there is not a serious intention to redevelop these buildings in any acceptable time period and so our council will do what it has to do to enforce our bylaws," Shoemaker said.

"I hate not agreeing with you your worship. I do not agree with your statement. But the council has the power to do whatever it feels is proper to do," replied Ferrari.

"And we will," said Shoemaker. 

In the end, council voted to direct Sault Ste. Marie city staff to look into options for the property but "since the city is not in a financial position to move beyond the current enforcement measures, that staff continue to seek funds in order to further such enforcement, which may include demolition, and report to council once financially able to."

Staff estimate that demolishing the old hospital buildings could cost taxpayers as much as $6 million.