“Eyesore” land in Clevedon long allocated for a replacement hospital could be sold off to build 70 homes.
NHS Property Services bought the Millcross site and secured planning permission for the building in 2010, three years before the KwikSave was demolished.
But the business case for the new hospital did not stack up and the land has since stood vacant, attracting trespassers and squatters.
The land has now been deemed surplus to requirements and could be worth nearly £5million to the NHS if planning permission is secured for housing and a care home.
The decision on whether to allow the sale sits with Bristol, North Somerset and South Gloucestershire’s clinical commissioning group.
A report to its governing body says: “Following the Naylor Review, NHS Property Services is required to release unused land and buildings to assist with raising funds to reinvest back into the NHS.
“The CCG (supported by North Somerset Council) are keen to make a decision about Millcross because the land has remained vacant and unproductive for nearly 10 years, during which it has suffered trespass and illegal occupancy at a cost to the local system.
“The site has become an eyesore and local residents and town councillors want to see it put to productive use.
“The CCG has a responsibility to ensure that it makes an assessment and decision on whether or not the Millcross site is required to build new healthcare capacity in Clevedon, before permitting NHS Property Services to dispose of the site.”
The hospital would have replaced Clevedon Hospital but the report says the facilities needed could be re-provided in a new building its car park, while there is enough capacity in the two GP surgeries to meet future demand.
It says the Millcross site could be worth £2.46million to the NHS if it was sold off to build 70 homes.
If planning permission was secured for a mix of residential and extra care retirement properties, consultants say it could be worth £4.8million.
Clevedon Town Council previously tried to have the Millcross site listed as an asset of community value - a move that would give it a chance to buy it - but North Somerset Council refused.
Members are keen to see it used for affordable housing.
The CCG’s governing body will meet on January 7.
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