UTICA, N.Y. -- It's another step forward in the proposed downtown Utica hospital project.

Mohawk Valley Health System leaders say their Certificate of Need application has been approved by the State Department of Health.

Project leaders are hoping to build a new healthcare campus.

The Certificate of Need application is for its construction.

The approval allows the Mohawk Valley Health System to finalize the facility's design, complete the State's Environmental Quality Review process, and complete property acquisition.

It comes one day after city and Oneida County lawmakers said they would use eminent domain to take over property if need be.

"We continue to want to negotiate with everybody in good faith I mean, the best outcome for us would be that we don't go to eminent domain at all, quite frankly, and we come to some sort of resolution with all the property owners," said Mohawk Valley Health System President/CEO Scott Perra.

Leaders say there are 35 property owners representing 72 parcels of land in the footprint.