Officials at Caritas Norwood Hospital are weighing their options after the failed sale at auction last week of the shuttered Southwood Hospital in Norfolk.
Caritas Norwood Senior Vice President of Operations William Fleming said yesterday talks are continuing with two bidders who emerged at last week's auction.
Fleming said Caritas Norwood is slated to get proceeds from the sale.
"We don't have a specific plan for the money, but it will stay in Norwood," said Fleming.
Fleming said Caritas Christi Health Care System's real estate brokers are talking with two "bona fide" bidders at last week's auction, in which the system rejected the high bid of $2 million.
Caritas Christi, Norwood Hospital's corporate parent, has been trying without success for several years to sell Southwood, which closed in 2003.
The 90-acre campus has been appraised at $5.5 million, but there are environmental concerns stemming from a landfill there that dates to when the state owned and operated the former Pondville State Hospital.
Caritas Norwood Director of Communications Mary Wallen said the hospital continually monitors the site and retained an environmental consultant years ago. That consultant recommended against disturbing the landfill, but monitor it through test wells to ensure any contamination is contained.
"We don't know the nature of the contamination," said Wallen.
After the hospital's closing in 2003, developers initially expressed interest in building age-restricted housing as well as stores and restaurants, but an 1981 state law prohibited non-hospital-related use.
Fleming said legislation has since been passed to allow age-restricted housing as well as some commercial and light industrial uses.
Now, it's a matter of finding a buyer and the right price.
Fleming said early indications from last week's auction indicate a couple of factors may have resulted in the bids that were deemed too low to accept.
"We heard it was the market, for one," said Fleming. "We also heard that the time frame may have been too short for (prospective buyers) to do their due diligence on the site - we gave them 45 days.
Fleming said hospital officials will now await word from further talks with some interested parties before making a decision.
"We'll have those talks and if nothing materializes we'll have to regroup and look at our options," said Fleming.
Daily News staff writer Brian Falla can be reached at 781-433-8339 or falla@cnc.com.
