Waitaki Mayor Gary Kircher met the owners of the buildings on the Hospital Hill site yesterday, to discuss future plans for the site.
He said the meeting was arranged some time ago and came about due to the increasingly derelict condition of the site, and the Waitaki District Council's desire for its owners to put a plan in place to address issues.
''There's been a lot of concern about the condition of the building. It's certainly been vandalised quite heavily. It's very unsightly and unsafe.''
The buildings are covered in graffiti and windows have been smashed.
The inside of the main building has also suffered significant damage at the hands of vandals.
''We know the owners were looking at demolition, so it was an opportunity to talk about that and what they saw the future of the site being.''
Mr Kircher said previous plans for the site involved development that would include restaurants, retail spaces and accommodation, and the council was keen to know ''whether that was the plan''.
Other issues discussed at the meeting, which Mr Kircher said ''went well'', involved implications around building consents and planning, as well as the potential dumping of demolition waste, including asbestos, which will have to be buried.
''One of the things we have made them aware of is that the landfill has a limited life. It will be closed next year and the ability to get rid of solid waste at a more reasonable price will be limited.
''It's going to be a lot cheaper for them to get rid of it now, rather than just carting it to other places. It does put a little bit of a time factor on things.''
The Oamaru landfill's consent expires in April and a council-funded project to cap it is well under way.
Sites for a new landfill are being investigated.
Mr Kircher believes demolition and rebuilding at the Hospital Hill site is the best option for Oamaru.
Some buildings, such as Eden Garden Motel, which occupies the former maternity annexe site, will remain.
''We're just trying to be proactive about getting the site tidied up,'' he said.
''It's a high-profile site in Oamaru and its potential for redevelopment is very high. The demand, particularly for residential sites with good outlooks, is high.''
Work on the $21 million Observatory Hill Retirement Village, just above the old hospital site, may begin later this year.
-by Daniel Birchfield
