‘The former St. Thomas Psychiatric Hospital site presents an exciting opportunity to put unused government land back to work, unlocking new homes, parks and local businesses’

In the coming years, in the shadow of St. Thomas, a small town will sprout and grow; its progression unfolding like time-lapse photography.

And its evolution will begin to germinate next week as the Municipality of Central Elgin begins the hunt for “experienced development partners” to play a leading role in turning about 400 acres of land into the largest planned community expansion in the municipality’s history.

The former St. Thomas Psychiatric Hospital lands in the coming decades will be redeveloped into a community of more than 3,500 new homes, with 9,000 residents, local businesses and parkland.

The hospital opened in 1939, and St. Joseph’s Health Care in London assumed control in 1997 as part of the reorganization initiative ordered by the Health Care Restructuring Commission.

It closed once the Southwest Centre for Forensic Mental Health Care opened in 2013.

The province currently owns the land, and about 60 acres is being set aside for institutional use, including a possible expansion of St. Thomas Elgin General Hospital and a school.

The redevelopment will help support the job growth expected with the opening of the PowerCo EV battery gigafactory in 2028.

Central Elgin Mayor Andrew Sloan outlines the request for proposal (RFP) process that will launch on Monday (March 2).

“There will be 60 days for anyone who is interested to come forward. They’re going to see what the RFP entails. And at that point, they’ll be bidding on the 410 acres, the last 50 acres, which the provincial government is going to hold back for future use.”

Because of the massive scale of developing what, in essence, will be a community the size of a small town, the undertaking will be phased in over the next couple of decades, explains Sloan (see map below).

“Phase 1 is 2027 to 2031, and then it goes 2031 to 2041, 2041 to 51, and the portion that the province is keeping back will be what they say, to be announced.

“I think you and I both know that there’s been talk about whether a new hospital might go to the site. That’s not in our scope right now. But I think the good news is that the province will have the opportunity for, be it hospital, long-term care, or other community assets, to be planned for there.”

Development bids are likely to be submitted by partnerships or consortia rather than single developers.

“So, I think you will see partnerships. I think we’ve had interest. I mean, the minute that we talked about a potential sale, developers have come forward and expressed interest.

“And it’s a mix. It’s a mix of locals. It’s a mix of, you know, from outside of the region. But I believe you’re correct that it will be partnerships. And, yeah, it’s a big piece of property.”

Sloan stresses the land will not be parcelled off, but, instead, there will be one winning bid.

The RFP will be put forward by Central Elgin. Infrastructure Ontario owns the land, but Central Elgin will be the owner of the land that is purchased. The developer will purchase the land from Central Elgin.

“There are phases to it, but the purchase will be for the entirety with the exception of the lands that the government is holding.”

This is the west side of the property, bordering Sunset Drive, upon which the former hospital buildings are located. Their future will be determined by the province.

It is expected that the initial development will begin later this year in the northwest corner of the property, adjacent to Sunset Drive.

“So 85 per cent of the buildings are in the portion which the Ontario government is keeping back. And ultimately, the first shovels in the ground would be at the northwest corner of the facility.

“We’re trying to get housing as soon as possible for Powerco and the development, and the 3,000 jobs and 30,000 indirect jobs that are supposedly coming.”

Two years ago, in what was referenced as a historic settlement, the City of St. Thomas reached an agreement on an $80 million compensation package to Central Elgin for the hundreds of acres of land absorbed by the city for its new industrial park that is the home of the PowerCo EV battery plant.

The land was obtained by the city under provisions in Bill 63, St. Thomas – Central Elgin Boundary Adjustment Act, 2023.

The $80 million is made up of $15 million in monetary compensation and access to 7,700 cubic metres per day of wastewater treatment capacity at flow rates equal to City of St. Thomas rates.

This is projected to have a value of $75 to $85 million.

That wastewater treatment capacity will be used to service the new development.

“Recent investments in St. Thomas, through businesses like Vianode and Volkswagen, have emphasized the need to get shovels in the ground for more homes in a growing community.”

Due to the scope of the development over the coming decades, Sloan advises that the municipality will need to eventually hire additional staff.

“We’ve taken our own planning in-house. We had an agreement with the City of St. Thomas for many years, but with a project such as this, we knew as a council that we should be guiding this ourselves.

“So ultimately, will we scale up in certain departments when it comes to building and that kind of stuff.

“But this project will happen over phases. And as I was saying, the last phase isn’t until 2050. So in time, we will respond to the need for extra staff.

“And once fully built out, there will be a lot more staff who are needed to deal with it.”

Rob Flack, Elgin-Middlesex-London MPP and Minister of Municipal Affairs and Housing, observes, “Recent investments in St. Thomas, through businesses like Vianode and Volkswagen, have emphasized the need to get shovels in the ground for more homes in a growing community.”

Todd McCarthy, Ontario’s Acting Minister of Infrastructure, adds, “Our government is driving investment and growth in the region, and is pleased to support Central Elgin’s vision to create a new, mixed-use community.”

“The former St. Thomas Psychiatric Hospital site presents an exciting opportunity to put unused government land back to work, unlocking new homes, parks and local businesses.”

Sloan admits it will be a significant learning curve moving forward.

“I must tip my hat to Rob Flack because not only is he the guy who been integral to keeping this going, but as Minister of Housing, he gives us that ability to work with his department on making sure that it’s done right.

“So it’s been a learning curve for me, and that’s one of the fun parts about any job, I think, is when you get to learn on the job.

According to information previously released by the municipality, this future community will:

  • Provide a range of housing options to support affordability and meet provincial housing targets
  • Create space for new residents and respond to population and housing pressures connected to regional job growth
  • Support Central Elgin’s strategic goals of sustainability, affordability, and livability
  • Include a vibrant main street, parks, community facilities, and cultural heritage features

As part of the planning process, heritage-related policies were updated, “To provide clearer guidance for conservation and commemoration, and to strengthen recognition of the site’s cultural and institutional history.”

Todd McCarthy stresses, “The former St. Thomas Psychiatric Hospital site presents an exciting opportunity to put unused government land back to work, unlocking new homes, parks and local businesses.”

Project information, engagement material and updates are available at https://letstalkcentralelgin.ca/ReimagineHospitalLands

A statutory public meeting will take place this Monday (March 2), from 6 until 8 p.m. at the Central Elgin council chambers, 450 Sunset Drive.

Related post:

https://ianscityscope.com/2025/10/11/re-development-of-the-former-psychiatric-hospital-land-in-central-elgin-im-an-eternal-optimist-and-i-think-that-there-could-be-shovels-in-the-ground-in-the-next-couple-of-years-mayor-andre/

TEMPORARY BYLAW ENSURES BACKYARD SWIMMING LESSONS CONTINUE

Just before Christmas, Joy Dawdy got a huge reprieve.

At the Dec. 8 meeting of city council, members unanimously agreed to direct staff to design a temporary bylaw, allowing Dawdy to continue offering swimming lessons in her backyard pool, likely for a period of three years.

Something she has done for more than three decades.

Staff were not recommending Official Plan and zoning bylaw amendments in a report to council from Michelle Knieriem, Manager of Planning Services.

Knieriem observed, “Staff understand and appreciate that the swimming lessons provided by the applicant are valued by many members of the community. While this value is noted, staff recommend refusal of the Official Plan and Zoning Bylaw Amendment applications due to issues of compatibility.”

And so that temporary bylaw is on the agenda for Monday’s (March 2) meeting.

The bylaw includes the following conditions:

  • Up to six students are permitted per lesson.
  • In addition to the swimming instructor, an additional person who does not regularly reside at the dwelling unit may also provide instruction.
  • Lessons may run in June, July, August, and September on any day between the hours of 8:30 a.m. and 6 p.m.
  • Leadership courses may be offered either inside or outside Dawdy’s residence, Monday through Thursday, between 9 a.m. and 4 p.m. in June and August.
  • The bylaw will expire on a yet-to-be-determined date in 2029.

In her report to council, Knieriem advised, “Staff are seeking direction to hold a public meeting on April 13, 2026. Following the public meeting, staff will prepare a follow-up report providing a summary of feedback received and including any recommended revisions to the draft Bylaw.

“Staff are of the opinion that a Temporary Use Bylaw would not conform to the Official Plan and are bringing forward this proposed Amendment at the direction of council.

“Staff will be reviewing the proposed Bylaw, including consideration received through the consultation process, and will make recommendations for a Bylaw that balances the business needs of the proponent and the impacts on neighbours.”

Related post:

https://ianscityscope.com/2025/12/13/joy-dawdys-swimming-lessons-earn-a-reprieve-however-some-conditions-will-apply/

WE’LL GET TO THAT ITEM OF BUSINESS . . . EVENTUALLY

In this corner’s early days, one of the more interesting items we followed on council agendas was a section labelled Unfinished Business.

It was a repository for city business where no resolution had been reached by members of council.

Perhaps members were awaiting a staff report or additional information.

In many cases, the item languished under Unfinished Business for months or even years for no apparent reason.

Like that Tupperware container in the fridge with long-forgotten leftovers hiding behind the milk jug.

Well, those we’ll-get-to-that-someday items are now back on council agendas courtesy of regular updates from City Manager Lisa Higgs (pictured at left).

In a report for the March 2 council meeting, Higgs notes, “Attached to this report is a summary of Council resolution and Direction that require reports from the City’s Leadership Team. The estimated report date will be populated as more information becomes available at each meeting.”

It feels like the return of an old friend.

The first edition of the summary contains a healthy list of 23 items idling at the intersection, waiting for the light to turn green.

Now, some of those business items were generated at recent council meetings, and the staff reports are being authored.

An example is the Parks and Recreation 2026 rates and fees bylaw from the Feb. 17 council meeting that is scheduled to be dealt with at the March 16 meeting.

However, there are seven items that first saw the light of day in 2023.

Like the 2022 Corporate Customer Service Update – Bylaw Enforcement Quicker Resolution piece of business, first dealt with at the Feb. 21, 2023, council meeting.

Are we to conclude that, in fact, there was no quicker resolution?

And then there is the council remuneration bylaw from the May 8, 2023, meeting, which Higgs notes she is reviewing and will bring forth a report for council at a future meeting.

The City Manager adds that she met with the HR department, and a consultant is to be engaged later this spring.

At what cost?

And we would be remiss if we didn’t mention the Backyard Recreational Axe Throwing report from Aug. 14, 2023.

I know, you are probably thinking that the report got axed.

Rest assured, it will reappear before council at the March 16 meeting so members can get a handle on it.

Welcome back, Unfinished Business; it just wasn’t the same without you.

A BIRTHDAY INVITE

City residents are invited to celebrate St. Thomas’ 145th birthday this coming Wednesday (March 4) at the Joe Thornton Community Centre.

The party kicks off with a free public skate from 5:45 to 6:35 p.m., followed by family-friendly activities, music, and complimentary food, while supplies last.

And then the celebration kicks into high gear at 7:30 when the Stars join the fun as they take on the St. Marys Lincolns, with the first 200 fans admitted free.

It’s icing on the cake as the community wishes St. Thomas a Happy Birthday.

FOR THE CALENDAR

Two upcoming public meetings may shed some light on the road ahead for the Elgin County Railway Museum.

On March 10, the public is invited to preview the concept designs “for the new Elgin County Railway Museum,” according to a promotional release.

The event runs from 4 to 7 p.m. at the CASO station.

And then on March 12, there is a public information meeting to update the community “on the current state of the Elgin County Railway Museum building and an exciting look at what the future could hold.”

There will be an overview of the current condition of the building, with a discussion of the challenges and opportunities for the structure.

There will be conceptual plans for future improvements, and public input is encouraged.

The meeting begins at 6 p.m. at the CASO station, 750 Talbot Street in St. Thomas.

Questions and comments may be emailed to City Scope

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And a reminder, I can be heard weekday afternoons as news anchor and reporter on 94.1 myFM in St. Thomas. As always, your comments and input are appreciated.

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