TROY – It will cost taxpayers nearly $1.6 million to tear down the long-closed Leonard Hospital, a decrepit structure the city once had the chance to sell for a $1 and avoid future responsibility for demolition.

The city has awarded two contracts amounting to $1.585 million to demolish the hospital on the community's northern boundary.

The demolition costs are about $1 million less than the estimate of $2.5 million made two years ago when the City Council failed to approve the sale of the former hospital to a developer.

All Phase Services, Inc. was given a $1.34 million contract for asbestos abatement in the 140,000-square-foot building. DiTono & Sons was awarded a $245,000 contract to raze the former hospital.

“For too long, the Leonard Hospital building has harmed property values and decreased the quality of life for families and businesses in our Lansingburgh neighborhood,” Mayor Patrick Madden said in a statement.

“Demolition of this blighted structure will create new opportunities for neighborhood revitalization and investment in north Troy, part of my administration’s commitment to support our diverse neighborhoods and positively impact the future of our community,” Madden continued.

The city set an Oct. 1 deadline for having the hospital site cleared when it bid the work. The asbestos abatement work will start this summer. When that is completed the demolition will begin.

The hospital was completed 47 years ago in 1972 at 74 New Turnpike Road. The hospital has been closed for about two decades. The city assumed ownership of the 6.43-acre property in 2012 when it was taken for unpaid property taxes.

In 2017, Madden’s administration proposed selling the hospital site to The Community Builders for $1. The developer wanted to build 120 affordable housing apartments at a cost of $20 million to $23 million.

The deal fell apart when City Council approval collapsed amid mounting pressure from residents who opposed the development. The council vote was 4-4 with 1 abstention leaving the approval short by one vote.

The city now wants to present a shovel-ready site to developers. The city attempted to find other uses for the building but its age and deterioration made this impossible.

City officials say an effort lead by the community will be relied on to come up with ideas for future development of the land.

The hospital has proven to be a liability to the city. Victoria Brothers, 20, sued the city after she fell 20 feet at the hospital site while watching fireworks July 4, 2016. The hospital was not locked up to prevent people from entering the grounds. The case is pending in state Supreme Court.