QuickTake:

Structural demolition of the former hospital near the UO campus will begin Monday, March 23, officials said. Traffic on Hilyard Street will be affected as the work proceeds.

2:30 p.m.: This story has been updated with details about the timeline of demolition work at the former PeaceHealth site.

Asbestos removal work and initial demolition prep work has unfolded in advance of the teardown at the site of the former PeaceHealth Sacred Heart Medical Center, University District in Eugene.

Structural demolition of the hospital building starts Monday, March 23, said Joseph Waltasti, a spokesperson for PeaceHealth. The work will require traffic control along Hilyard Street between 13th Avenue and 11th Alley.

Construction equipment was at the site and operating this week. PeaceHealth relocated the hospital to Springfield and put its property up for sale in multiple parcels. 

Demolition work will include closure of the east sidewalk along Hilyard Street, and pedestrian traffic will be directed to the west sidewalk. The northbound bike lane will be temporarily relocated into the eastern travel lane and separated from vehicle traffic with a temporary barrier, Waltasti said in an email.

Vehicular travel lanes on Hilyard Street will stay open during this phase.

City records show permit applications were filed last year for interior demolition work, demolition of the entire building and tree removal.

Landmark Properties, a Georgia-based developer involved in the demolition work, intends to construct housing on part of the former hospital property. The company had a site consultation with city officials in July 2025, a typical first step for developers weighing whether a project is feasible.

In a statement, a spokesperson for Landmark Properties said: “The proposed project expects to deliver over the course of two phases. Phase one will include 272 units while phase two will include 325 units. Demolition work has commenced on site and is expected to be fully complete later this year.”

PeaceHealth’s Waltasti said demolition of the hospital’s ancillary building will start in late April. Hilyard Street will be closed entirely to traffic during removal of skybridges over Hilyard Street, he said. The removal of all three skybridges is tentatively set for mid-May, Waltasti said.

Since PeaceHealth put the property up for sale in March 2025, different organizations have expressed interest in different parts of the real estate, which totals 1.2 million square feet on 12.53 acres. Jim Murez, a spokesperson for PeaceHealth didn’t return phone calls seeking more information about the status of that work.

In August, Bushnell University announced plans to purchase two buildings at the site to expand its health profession programs.

Ben Botkin covers politics and policy in Lane County. He has worked as a journalist since 2003, most recently at the Oregon Capital Chronicle, where he covered justice, health and human services and documented regional efforts to fentanyl addiction. Botkin has worked in statehouses in Idaho, Nevada, Oklahoma and, of course, Oregon. When he's not working, you'll find him road tripping across the West, hiking or surfing along the Oregon Coast.