Central Elgin Hospital Lands Redevelopment

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Over the next several years, Central Elgin is poised for significant new residential and employment growth following a historic investment by the Government of Canada and the Province of Ontario to establish Volkswagen’s first overseas electric vehicle battery manufacturing facility. The facility, set to open in 2027, will create up to 3,000 direct jobs and as many as 30,000 indirect jobs across the region, including Central Elgin.

The new jobs will drive up demand for housing, making speedy provision of housing a priority. The former hospital lands are well situated to accommodate the bulk of this growth within a new mixed-use community. Fully built out, the new community could almost double the current population of Central Elgin.

To support this economic opportunity, anticipated population growth and the accompanying demand for a full range of housing options, the Municipality of Central Elgin is proactively planning for a complete, mixed-use community that will meet the needs of current and future residents.

About the Project

The Municipality of Central Elgin is planning a new community on the former Psychiatric Hospital Lands - a rare opportunity to build a complete, thriving, and inclusive community.

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 liveability
  • Include a vibrant main street, parks, community facilities, and cultural heritage features

Where We Are Now

On Monday, April 13, Central Elgin Council approved the Hospital Lands Official Plan Amendment (OPA), marking a significant milestone in the long-term planning and development of the Hospital Lands.

At the same meeting, Council also endorsed the preferred water and wastewater servicing strategies identified in the Hospital Lands Feasibility Study, marking an important step toward supporting future development. Staff have been directed to initiate an RFP for the design and construction of key water infrastructure, including a booster pumping station, a trunk watermain connection to the Elgin Area Primary Supply Line, and a water storage facility. At the June 22 Meeting of Council, Council awarded the contract to Stantec Consulting Ltd. to complete a Municipal Class Environmental Assessment (Schedule B) for the proposed Hospital Lands Water Storage and Booster Pump Project.

The Municipality's Request for Proposals (RFP) to identify potential development partners to help deliver a complete community on the former St. Thomas Psychiatric Hospital lands has closed. The Municipality is currently reviewing the bids and expects to finalize the process over the next few months.

On Tuesday, July 14, Elgin County Council approved Official Plan Amendment No. CE OPA-01-26. The County's approval brings the OPA into effect and enables the Municipality to advance the next phases of planning and development for the site.

On-site Abatement Work

The former hospital lands are owned by the Province and administered by Infrastructure Ontario (IO) as the government’s realty agency. IO hired contractors to begin site-preparation work in June 2026, requiring abatement and demolition of the buildings. The work is expected to take approximately two years.

To conduct this work, the contractor has installed safety fencing to ensure the safety of the public and to prevent unauthorized entry into the active worksite. As such, public requests to enter the active construction site to remove items from the buildings or to take photographs cannot be accommodated.

To honour the former hospital’s history, IO will be working with Central Elgin and the future developer to preserve and reuse selected stone carvings from the buildings as part of the new community development.

Over the next several years, Central Elgin is poised for significant new residential and employment growth following a historic investment by the Government of Canada and the Province of Ontario to establish Volkswagen’s first overseas electric vehicle battery manufacturing facility. The facility, set to open in 2027, will create up to 3,000 direct jobs and as many as 30,000 indirect jobs across the region, including Central Elgin.

The new jobs will drive up demand for housing, making speedy provision of housing a priority. The former hospital lands are well situated to accommodate the bulk of this growth within a new mixed-use community. Fully built out, the new community could almost double the current population of Central Elgin.

To support this economic opportunity, anticipated population growth and the accompanying demand for a full range of housing options, the Municipality of Central Elgin is proactively planning for a complete, mixed-use community that will meet the needs of current and future residents.

About the Project

The Municipality of Central Elgin is planning a new community on the former Psychiatric Hospital Lands - a rare opportunity to build a complete, thriving, and inclusive community.

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 liveability
  • Include a vibrant main street, parks, community facilities, and cultural heritage features

Where We Are Now

On Monday, April 13, Central Elgin Council approved the Hospital Lands Official Plan Amendment (OPA), marking a significant milestone in the long-term planning and development of the Hospital Lands.

At the same meeting, Council also endorsed the preferred water and wastewater servicing strategies identified in the Hospital Lands Feasibility Study, marking an important step toward supporting future development. Staff have been directed to initiate an RFP for the design and construction of key water infrastructure, including a booster pumping station, a trunk watermain connection to the Elgin Area Primary Supply Line, and a water storage facility. At the June 22 Meeting of Council, Council awarded the contract to Stantec Consulting Ltd. to complete a Municipal Class Environmental Assessment (Schedule B) for the proposed Hospital Lands Water Storage and Booster Pump Project.

The Municipality's Request for Proposals (RFP) to identify potential development partners to help deliver a complete community on the former St. Thomas Psychiatric Hospital lands has closed. The Municipality is currently reviewing the bids and expects to finalize the process over the next few months.

On Tuesday, July 14, Elgin County Council approved Official Plan Amendment No. CE OPA-01-26. The County's approval brings the OPA into effect and enables the Municipality to advance the next phases of planning and development for the site.

On-site Abatement Work

The former hospital lands are owned by the Province and administered by Infrastructure Ontario (IO) as the government’s realty agency. IO hired contractors to begin site-preparation work in June 2026, requiring abatement and demolition of the buildings. The work is expected to take approximately two years.

To conduct this work, the contractor has installed safety fencing to ensure the safety of the public and to prevent unauthorized entry into the active worksite. As such, public requests to enter the active construction site to remove items from the buildings or to take photographs cannot be accommodated.

To honour the former hospital’s history, IO will be working with Central Elgin and the future developer to preserve and reuse selected stone carvings from the buildings as part of the new community development.

Have Questions?

Our project team is here to provide answers. Submit your questions and get answers directly from our team.

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  • Share To whom and where should written submissions on the OPA be submitted on Facebook Share To whom and where should written submissions on the OPA be submitted on X (formerly Twitter) Share To whom and where should written submissions on the OPA be submitted on Linkedin Email To whom and where should written submissions on the OPA be submitted link

    To whom and where should written submissions on the OPA be submitted

    Ted Halwa asked 6 months ago

    Hello, written submissions can be submitted to: Delany Leitch, Clerk 

    Municipality of Central Elgin 

    450 Sunset Drive, 

    1st Floor St. Thomas, Ontario 

    N5R 5V1 

    (519) 631-4860, Ext. 286 

    deleitch@centralelgin.org

Page last updated: 05 Aug 2026, 11:46 AM