The Government has finally found a buyer for the old Napier Hospital site, and will use the proceeds to build a new mental health unit.
On the market since 2006, the site has been bought by the Todd Property Group (TPG) for an undisclosed sum.
TPG sold land at Ngunguru Spit in Northland to the Department of Conservation to fund the purchase, in a deal that Health Minister Tony Ryall is calling a "win" for all involved.
"It’s a win, win, win for the Department of Conservation, Hawke's Bay District Health Board and the people of Napier," says Mr Ryall.
The Ministry of Health will contribute $5 million to the refurbishment of the mental health unit, located in Hastings. The Hawke's Bay District Health Board will use its $5.1 million share of the sale, as well as $10 million it already has.
"This is great news for Hawke's Bay," says Mr Ryall.
"Replacing the old mental health unit has been a high priority for quite some time. In 2009 I visited the current unit and I strongly support its replacement."
TPG, formerly known as Landco, bought the Ngunguru Spit in 2003 for a planned development of lifestyle blocks, but met with opposition from locals.
3 News