The move follows the Paterson City Council’s preliminary approval of a tax break for the project’s nonprofit developer, Medical Missions for Children, which threatened to sue the hospital for the $20 million it has already spent during planning for the project, according to the report.
Hospital officials cited financial risk as the reason for their decision.
“There is just too much risk associated with this project,” Kevin Slavin, the hospital’s new CEO said, according to the report. “As financial stewards of St. Joseph’s, our highest priority is to protect the future of our safety-net hospital.”
He also noted that, after a recent “due diligence” review of the project’s finances and feasibility, there are still unresolved questions about the project’s feasibility and suitable protections for the medical center, as well as the need for additional board, state, county and local approvals.
The project was initially proposed in 2008.
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