The Otago District Health Board is likely to seek the approval of the Minister of Health to sell a surplus block of land at Wakari Hospital.
The land, with a 2008 registered valuation of $585,000, is next to Leslie Groves rest-home and hospital, which is interested in buying the land to expand its facilities.
Public consultation over the prospective sale resulted in one submission which was generally supportive, but addressed some issues of access depending on how the property was subdivided.
In a report to the board's final meeting this week, chief financial officer Robert Mackway-Jones said the submission raised concerns about the protection of several trees on the site, but none of the trees were protected.
He recommended the board agree to sell the land and seek ministerial approval to do so.
If that succeeded, the Crown Health Financing Agency would then arrange for subdivision to occur.
The agency would also have to identify former owners or their descendants, who, under the Public Works Act, had the right to buy it back at current market value.
If they did not want it Ngai Tahu would be offered the chance to buy the land.
The land would be offered to Leslie Groves if Ngai Tahu did not want it.
Mr Mackway-Jones noted that although Leslie Groves had expressed an interest to buy the property and encouraged the board to offer it for sale, any sale to it could not be guaranteed because of the Public Works Act and the Ngai Tahu Settlement Claims Act requirements.
