Media Release
City and Schlegel Villages Partner to Create New Long-Term Care Spaces
HAMILTON, ON – More Hamilton residents will benefit from new long-term care spaces, a remediated site and the revitalization of underused land with City support for the redevelopment of the former psychiatric hospital lands at 290 Fennell Avenue West.
Hamilton City Council approved an Environmental Remediation and Site Enhancement (ERASE) Redevelopment Grant application from Schlegel Villages Inc. at the October 7 Council meeting to help clean up historical contamination and support redevelopment of the site.
"Hamiltonians deserve to see underused and contaminated properties transformed to serve our community," said Mayor Andrea Horwath. "This project will help deliver much-needed long-term care spaces, support future housing opportunities and generate new tax revenue that can help fund City services. By working collaboratively with Schlegel Villages, we can clean up this site and create lasting benefits for current and future generations."
The project will create a new 512-bed long-term care facility while helping prepare the property for future housing and community development.
The former psychiatric hospital lands contain historical environmental contamination that must be addressed before redevelopment can occur. Environmental investigations identified contaminants in soil and fill materials resulting from past uses of the property.
Without remediation, redevelopment opportunities would be significantly limited.
The City's ERASE program is designed to help unlock projects like this by offsetting eligible environmental cleanup costs. Grants are funded through a portion of the new municipal property taxes generated by the completed development and are paid only after redevelopment has occurred.
This project will improve environmental conditions, support community needs and create long-term economic benefits for Hamilton.
The proposed ERASE grant would support approximately $12 million in eligible environmental remediation costs, including contaminated soil removal, environmental testing and regulatory requirements needed to make the site ready for redevelopment.
"The ERASE program is designed to remove barriers that can prevent brownfield sites from being redeveloped," said Mike Zegarac, Interim City Manager. "This project is a strong example of how the City and the private sector can work together to address historical environmental contamination, create important community infrastructure and unlock long-term economic benefits. The result is a remediated site, new long-term care capacity and increased tax revenue without requiring new upfront City funding."
Once complete, the development is expected to generate approximately $1.98 million annually in new municipal property taxes. During the grant period, the City will retain a portion of those new tax revenues to support other brownfield redevelopment and affordable housing initiatives.
After grant payments are complete, the City will receive the full annual tax increase generated by the project.
The redevelopment also supports broader community-building goals by directing growth to an existing urban area, reducing pressure on greenfield lands and helping create complete communities with housing, long-term care and other future uses.
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People & Programs
Long-term Care
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