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The Municipality of Central Elgin has launched an unprecedented community development initiative, which will take 370 acres of unused land at the former site of the St. Thomas Psychiatric Hospital and turn it into the largest planned community expansion in the area’s history. The result will be space for over 3,500 new homes, 9,000 residents and many local businesses.
To capitalize on this once-in-a-generation opportunity, Central Elgin is seeking experienced development partners to deliver a complete community that includes a mix of homes, park space, a vibrant main street and a connected transportation network.
Successful development partners will have the opportunity to play a leading role in a project that creates value for people by prioritizing housing supply and affordability, environmental sustainability, walkability and long-term community building.
Central Elgin, in consultation with the community, has developed a framework and vision for the site that supports families, seniors and workers, while reflecting the character and uniqueness of the municipality.
The redevelopment of the former St. Thomas Psychiatric Hospital lands, which will be enabled through the Ontario government’s surplus lands process, will help support the job growth expected when the Volkswagen battery plant opens in 2027.
“Thank you to Central Elgin for seizing the opportunity to manage a Request for Proposal for the potential redevelopment of the surplus hospital lands on Sunset Road," said Rob Flack, MPP for Elgin-Middlesex-London and Minister of Municipal Affairs and Housing. "Recent investments in St. Thomas, through businesses like Vianode and Volkswagen, have emphasized the need to get shovels in the ground for more homes in a growing community.”
“Our government is driving investment and growth in the Region and is pleased to support Central Elgin’s vision to create a new mixed-use community,” said Todd McCarthy, Ontario’s Acting Minister of Infrastructure. “The former St. Thomas Psychiatric Hospital site presents an exciting opportunity to put unused government land back to work, unlocking new homes, parks and local businesses. We will continue working with our partners to build strong, vibrant communities where families and businesses can thrive.”
The RFP will be issued on March 2, 2026 at: https://www.centralelgin.org/en/municipal-office/bids-and-tenders.aspx
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