Glamis Hospital, abandoned since 2011, has been gutted by two suspicious fires, one late last year and another earlier this month.
A police spokesman said no arrests had been made regarding either blaze and inquiries were ongoing, but disclosed a youth had been trespassed from the Montpellier St building on August 17, the day of the second suspicious fire.
The building is a hot spot for vandalism in Mornington, and residents say they are fed up with youths hanging around in the building late at night.
A Dunedin City Council (DCC) spokesman said its building services team had been in contact with the owner of the hospital, "who has indicated he is making arrangements to come back to Dunedin".
"At this stage, the DCC is not looking to take any action because the building is unoccupied and therefore this is not a matter for the Building Act."
In response to follow-up questions, DCC building services principal adviser Neil McLeod said they had contacted the owner twice regarding the building.
"We initially contacted the property owner in November 2017 to let them know there had been a fire, and that, given the particular circumstances, we had concerns about public safety and had therefore arranged for the building to be barricaded.
"We contacted the owner again last week to inform them of the second fire and to try to gain an understanding of their intentions for the building."
The Otago Daily Times understands the owner, Leng Seak Loke, lives in Malaysia, is in poor health and has stopped responding to emailed questions from neighbours.
All residents and staff at the Glamis site were transferred to the Yvette Williams Retirement Village in Highgate when it opened in early 2011.
