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For more than 100 years, the state has operated the Oregon State Hospital on a large tract of land in Salem. In April 2012, the last patients were relocated to a new facility on the property’s southern portion. A 47-acre urban parcel known as the North Campus was declared surplus. The parcel, surrounded by city streets, has buildings containing approximately 500,000 square feet, large open spaces and mature trees.

The state is now looking to prepare the property for sale.

鈥淥ur plan is to demolish four buildings and keep two,鈥� said Eric Grindy, senior real estate transaction and portfolio manager for the state. 鈥淭he hope is that a developer will buy it and build something interesting and successful there. We have a preliminary schedule based on our best guesses. We think we’ll be done with the demolition and ready to transfer it to someone by about the middle of 2017.鈥�

In July, the Oregon Legislature approved $8.3 million to complete hazardous materials abatement, demolition of buildings east of 25th Street and perform site preparation on the North Campus. The asbestos abatement will be critical.

鈥淲e did an RFP a couple of years ago for asbestos abatement and got zero interest,鈥� Grindy said. 鈥淭here is a lot of risk associated with those buildings and the asbestos that is in them and also some lead paint. People just didn’t want to take that on at any price. But we know that there could be some components of that related to that time in the recovery.鈥�

A request is expected to be made for proposals from contractors interested in completing additional testing of hazardous materials, abatement and demolition from November 2015 to March 2016. The work is being overseen by the Department of Administrative Services and consultants, and is subject to change.

Because the site is located in a National Historic District, approval from the State Historic Preservation Office and the city of Salem will be required prior to demolition.

In 2012, Leland Consulting Group and Cushman & Wakefield were hired to determine a highest and best use for the North Campus as well as a strategy for potential future redevelopment. The greatest economic value for the site, according to the study, would be a mix of uses such as multi-generational and mixed-income housing, neighborhood retail, lodging and supportive services.

The DAS on Oct. 20 will give an update on efforts to prepare the North Campus for sale and redevelopment. The public is invited to attend the free presentation, which will take place at Fresh Start Market in Northeast Salem from 7 to 7:30 p.m. 鈥� prior to the general Northeast Salem Community Association meeting.

鈥淚t’s an update 鈥� to tell (interested parties) where we are in the process of trying to dispose of the property,鈥� Grindy said.