TROY — The city will have to borrow $2.5 million to raze the former Leonard Hospital building after the City Council failed to approve the property's sale by a split 4-4 vote with one abstention Thursday night.

"We have to deal with the Leonard Hospital building," Mayor Patrick Madden said. "We're looking at bonding to demolish — $2.5 million."

The city wanted to sell the property to The Community Builders for $1. The site's planned developer proposed building 120 apartments of affordable housing at a cost of $20 million to $23 million.

The tie vote was not anticipated and was greeted with cheers from many of the 80 people at the meeting.

The expect 5-4 majority evaporated when Republican Councilman John Donohue of South Troy said he had to abstain because he worked for Unity House. Unity House was working with The Community Builders to have access to housing in the proposed apartment complex.

The city has held the 6.43-acre property with its deteriorating hospital building at 74 New Turnpike Road since 2012 when it was taken for unpaid property taxes.

The City Council last week approved the sale at its Finance Committee meeting by a 6-2 margin. Donohue arrived after the committee vote.

The 6-2 majority collapsed Tuesday after a meeting at the Lansingburgh Boys and Girls Club attended by 100 people, nearly all of them opposed to the sale.

At Thursday's council meeting, public opposition continued. There was one common message.

"We can all agree Leonard Hospital has to go," said John Cubit.

How to get rid of the property was another matter.

Lansingburgh schools Superintendent Cynthia DeDominick warned the sale to The Community Builders would raise Lansingburgh school taxes by 7 percent based on a projection of 100 additional students.

Residents — mostly from Lansingburgh — argued against the sale.

"We want reinvention. We want our neighborhoods. The project at 74 New Turnpike does nothing to better any of Troy's neighborhoods," said Jeffrey Gordon.

Republican Council President Carmella Mantello and at-large Democratic Councilwoman Erin Sullivan-Teta switched their votes to join Lansingburgh GOP Councilman Jim Gull and at-large GOP Councilwoman Kim Ashe-McPherson in voting against the sale.

Backing it were GOP Councilman Mark McGrath of South Lansingburgh and GOP Councilman Dean Bodnar, who lives on the city's East Side, Democratic Councilman Robert Doherty, who lives downtown, Democratic Councilwoman Lynn Kopka, who lives on Washington Park.

Madden said the administration would review the situation then work toward bonding to pay for the demolition. The bonding would probably not occur until 2018.

kcrowe@timesunion.com • 518-454-5084 • @KennethCrowe