The old St. Francis Hospital and its property at Good Hope and Pacific streets have been purchased by a Little Rock, Ark., firm that plans to turn it into housing units.

The Phillips Cos. of Little Rock purchased the property from 811 Good Hope Co. of Springfield, which was founded in March 1998 and named for the address of the 86-year-old structure.

The Springfield company run by Trent Condellone had planned a $5 million renovation of the three-level, brick building into government offices.

A Phillips representative said Monday his company was looking at some type of affordable housing program or apartments for the site.

Phillips, which consists of Phillips Development Cos. and Chester Phillips Construction, own, manage and have built about 50 apartment complexes in Arkansas, Missouri and Kentucky. Phillips is building an apartment complex in Independence.

The company is working with the Cape Girardeau City Council on plans here.

"At this point, everything is sketchy," said a Phillips representative. "Our plan is to put some apartments at the site."

Plans did not indicate whether they included the present building at the site.

The city has begun condemnation proceedings on the former hospital.

Cape Girardeau City Manager Mike Miller said the city was willing to look at development plans and could put a hold on the condemnation suit if a feasible development proposal is made.

"We don't have any agreements yet concerning the building," Miller said.

The building, built in 1914, has been vacant for 14 years and had been used as a hospital until the St. Francis Medical Center opened in 1976.

It then was sold to Southeast Missouri State University, which housed students in the building until 1985.

A Texas man purchased the property in 1988, but his plans for a senior housing center never materialized. Following the man's death, the property went into his estate and was tied up in probate court until Condellone bought the property from the estate.

The hospital building is one of two the city has considered for demolition. City building and health officials closed the Marquette Hotel in November 1996 for fire safety deficiencies. A condemnation suit could be started on the hotel soon.

The city has budgeted $500,000 in use-tax revenue to pay for demolishing the old hospital and hotel.

That is not enough to cover costs of demolishing both buildings, but the old hospital likely would be torn down first if redevelopment efforts fall through. A group has expressed an interest in renovating the Marquette.

Some city officials have said they would like to see the buildings renovated rather than torn down.

If either building is demolished, the cost can be billed to the owner through taxes. If the owner doesn't arrange for the cost of the tax bill, the city could foreclose on the property and acquire it or sell it to recoup some of the demolition costs.