
A central city location for the new hospital was regarded as critical by all parties, trainee doctors — as well as students at the Otago Polytechnic Nursing School — hoping to remain close to the rebuilt facility.
"Having a central CBD location was highly desirable, so we are very happy with that," Prof Peter Crampton said.
"The most important concept was that of a health precinct where education workforce development, research, generation of new knowledge, innovation, commercial outcomes and healthcare delivery all work together."
While the new hospital was great news for some students, for those living in Te Rangi Hiroa College — a recently built, university-owned residential college sited on one of the blocks of land to be used for the building project — a time of uncertainty approaches.
University chief operating officer Stephen Willis said there would be no effect on students at the college this year, and the building — named after Sir Peter Buck, the first Maori medical graduate of a New Zealand university — might yet remain a residential college.

"If the building is no longer able to be used as a residential college, the university will look to rebuild Te Rangi Hiroa College elsewhere, retaining its identity and name."
Southern DHB commissioner Kathy Grant said yesterday was a red-letter day for the organisation’s staff, and the wider community.
"It is a day which has been anticipated for some number of years," she said.
"It makes it more real for our community.
"They can look at some of those very preliminary diagrams — they are only concepts at this stage — and get a bit of feel for how buildings might fit on the site."