Agreement to purchase St. Joseph's Hospital signed

• Hafnarfjörður buys the main building of St. Joseph's Hospital from the state
• A public service will be operational in the building again.
• Council-appointed working group established on the future of the building

Haraldur L. Haraldsson, Mayor of Hafnarfjörður, and Benedikt Jóhannesson, Minister of Finance and Economic Affairs, today signed an agreement for the purchase by the Borough of Hafnarfjörður of the state's 85% stake in the main building of St. Joseph's Hospital. Hafnarfjörður already owned 15%.

Upon purchase, the Municipality of Hafnarfjörður commits to operating a public service in the building for a minimum of 15 years from the signing of the agreement. Public services shall mean activities in social services, health services, cultural or educational activities, or other comparable services that the public accesses in the municipality. The City of Hafnarfjörður also undertakes to commence operations in the property within 3 years of the signing of the agreement. The purchase price is 100 million króna and the building will be handed over on 15 August 2017. The price reflects the intended use of the building for the public benefit. The agreement also includes a clause for a higher price should those plans be abandoned.

A working group on the future of St. Joseph's Hospital was appointed at a meeting of the Hafnarfjörður Town Council yesterday, 29 June, and will map out the possibilities and submit a proposal for the future use of the building by 10 October. The working group is composed of Guðrún Berta Daníelsdóttir, Sigríður Björk Jónsdóttir, Karl Guðmundsson and Elva Dögg Ásudóttir Kristinsdóttir. The group's staff member and project manager is Sigríður Kristinsdóttir, Director of the Administration Department for the Municipality of Hafnarfjörður and the town's lawyer.

^{Councillors of the City of Hafnarfjörður and representatives of the Ministry of Finance and Economic Affairs, with the minister and the mayor, outside the Bookless Bungalow after the signing of the purchase agreement.}

„St. Joseph's Hospital has great sentimental value for residents and other well-wishers of the town of Hafnarfjörður. There is a strong desire to get the building into good order and back into use as soon as possible. Numerous parties have already shown interest in the building, both for temporary projects and with a view to the future. A newly appointed working group will receive all ideas and enquiries and will set out the guidelines.“ says Haraldur L. Haraldsson, the mayor.

„We welcome that this historic house will be given full honour and find a new purpose, and that the state and the City of Hafnarfjörður have reached an agreement on an arrangement that takes into account the interests of both.“ says Benedikt Jóhannesson, Minister of Finance and Economic Affairs.

St. Joseph's Hospital has been closed since the end of 2011. Discussions with the local council have been ongoing, albeit intermittently. Detailed surveys have been carried out into potential uses for the state-owned property, but without success. The Ministry of Finance and Economic Affairs took over the management of the hospital in 2014 from the Ministry of Welfare. The sale has been authorised in the budget since 2013.