AUGUSTA -- MaineGeneral Medical Center's proposal to build a new, consolidated hospital on the 160-acre site of the Alfond Center for Cancer Care could help make Augusta a regional medical hub for the area, city officials and regional business leaders say.

But the question remains whether MaineGeneral's current hospital in downtown Augusta would be a spoke in that regional hub, or be left to find a new use.

MaineGeneral Health announced Thursday its plans to build a new consolidated hospital in Augusta, which would lead to closure of its downtown Augusta location, as well as the inpatient units at Thayer and Seton in Waterville.

Local city and business leaders said Friday they feel the hospital move would be good for Augusta.

"It's going to be great for the continued growth of the city of Augusta," said City Councilor Edward Coffin. "Augusta is, truly, the hub of central Maine. Medical care is going to be great for the region here. The cancer center is already a great place. And I think there will be a lot of spinoff businesses and medical offices out there."

MaineGeneral Health Chief Executive Officer Scott Bullock said the organization will wait until December 2009 to file a certificate of need for the new hospital with state regulators, who must approve the project.

Bullock said waiting until 2009 to apply for state approval will allow hospital officials to gain a better idea of the reuse of the existing Augusta hospital site on East Chestnut Street.

Local officials said they could see the existing Augusta hospital -- either the building or just the property itself -- having the potential for a number of different reuses, ranging from an assisted-living facility or nursing home to a hotel.

"My bet is that could be a good location for numerous different uses," said attorney Lester "Les" Wilkinson Jr., co-chairman of the city committee, which last year wrote a new comprehensive plan for the city of Augusta.

He noted lessons about what to do with significant properties in Augusta can be learned from the controversy surrounding the development of the former Cony High School site.

"When you're talking about a change in the uses of big structures, big employers and other things that impact the community, you need to be deliberate and seek, aggressively, community input," Wilkinson said. "And take your time."

City Councilor Michael Byron said he hasn't yet heard much about what the current hospital site could be used for.

He said MaineGeneral may reuse the building itself. If it doesn't, Byron said, the site overlooking the Kennebec River would likely be well sought-after by other potential users.

While the city's new comprehensive plan doesn't specifically address the entire hospital moving to the cancer center site, it does describe that area as a good potential location for medical offices and other medical-related developments.

"Their intentions weren't known at the time it was written," Wilkinson said. "But I think it's consistent with the plan. There were provisions made for that area to accommodate the cancer center. And I believe recommendations were broader than just the footprint of the cancer center. It's fair to characterize the (comprehensive) plan as supportive of that sort of development in that general area."

Augusta City Manager William Bridgeo said he and other city officials met Friday morning with MaineGeneral Chief Operating Officer Chuck Hays to discuss the proposed consolidation of hospital facilities.

Bridgeo said it is important to work closely with the hospital early on to assist in an orderly transition and to lay the groundwork for reuse of the East Chestnut Street site.

MaineGeneral has operated full-service hospitals within 21 miles of each other in Augusta and Waterville since the merger of Kennebec Valley Medical Center in Augusta and Mid-Maine Medical Center in Waterville in 1997.

The MaineGeneral Health board endorsed the decision to build a consolidated hospital in Augusta after six years of study, Bullock said.

MaineGeneral recorded an estimated $13 million loss for the fiscal year that ended June 30. A revised budget for the current year projects a $2.5 million surplus at the end of June 2009.

If all goes as planned, the new hospital would open in 2014.

"I think this is a very wise decision for the survivability of high-quality medical care in this regional community," said Peter Thompson, president of the Kennebec Valley Chamber of Commerce. "I suspect it is a hard decision to make, but from what I've heard it's got to be something that serves the best interests of consumers. The medical folks have had the discussion and looked at it as both a business and practice issue, and decided they're better off in a single place, because otherwise we're going to be wilting on the vine."

In recent years, MaineGeneral officials have considered various other proposals to consolidate its facilities in the area.

"The question of where is now answered," Thompson said. "What it's going to look like is coming down the road."

Keith Edwards -- 621-5647

kedwards@centralmaine.com