Land transfer for new Western State Hospital OK’d

STAUNTON -- Groundbreaking on a new Western State Hospital in Staunton is one step closer after a vote by the Industrial Development Authority to go ahead with a land purchase and transfer.

The new hospital will rise on land adjacent to its current campus as outlined in an agreement that combines state and city money and includes a property exchange between the state and the IDA.

During a special meeting recently, IDA members voted 4-0 to deed to the state 66 acres in the city's Crossroads Business Park for the new hospital. In return, Staunton will get about 275 acres available for "significant" and "valuable" mixed-use development, said Bill Hamilton, the city's economic development director.

Gov. Timothy M. Kaine announced the $127.5 million project in December, prompting the Staunton City Council in August to resolve to contribute $15 million to the project.

"It's a win for everybody when the city and the state can work together as closely as we have," IDA Chairman Joe Leigh said.

In exchange for the $15 million and IDA land transfer, the city stands to gain from a potentially huge development in the lucrative land wedge bordered by Interstate 81 and U.S. 250.

Developers are working on a proposal for just under 200 acres, Leigh said. An additional 80 acres occupied by the current Western State will also be open for development once the new hospital is completed, Hamilton said.

Expected next are official agreements signed by the Virginia Department of Behavioral Health and Developmental Servicescq and the Department of General Services.

"We certainly are expecting them to sign very soon," Hamilton said.

Hospital groundbreaking could begin by the end of the year. City funding will kick in around 2011, after state money is used first for the 250-bed hospital, Hamilton said.

Tony Gonzalez is a staff writer for The News Virginian in Waynesboro.