COR Development Co. has officially closed the deal to purchase the former Mercy Hospital site for its plans to redevelop the property into a mixed-use development of rental units and commercial space.
The Fayetteville developer has purchased about nine acres, consisting of four separate parcels, for $300,000 from MGNH Inc., Lake Katrine, for the project, according to property transaction records in the Jefferson County clerks office.
COR plans to start demolishing the mammoth complex this fall and transform it into 168 residential units and 42,000 square feet of street-level shops and offices.
The properties include nearly six acres containing a series of buildings at 218 Stone St.; a two-acre parking lot at 218 Rexford Place; a 1.15-acre parking lot at 213 Stone St., and a small parcel at 271 Arsenal St.
To get to this point, COR had to work through a series of legal title issues with both General Electric Capital, which held the mortgage, and MGNH to gain control of the property and avoid a lengthy foreclosure process.
The $65 million to $70 million project will include both market-rate apartments and affordable senior units. COR will use a $2 million grant to help pay the costs of the demolition, which may take six to eight months to complete.
While it goes through the demolition, COR also will work on going through the planning approval process.
The project also rids the city of the big headache of what to do with the complex, made up of a series of buildings that most recently housed a nursing home.
Without COR steeping in, city officials worried it would have cost the city millions to tear down the complex.
Samaritan Medical Center operated MGNHs Mercy Care Center of Northern New York in the complex until last April, when the last of the residents were moved to the recently completed Samaritan Summit Village on outer Washington Street.