It's a project that could help transform and revitalize downtown Utica. Officials are hoping a new hospital will replace the inpatient services currently offered at St. Luke's and St. Elizabeth's. Melissa Krull talked to leaders about what this could mean for the downtown neighborhood.

UTICA, N.Y. -- It's a project that could help transform and revitalize downtown Utica.

Officials are hoping a new hospital will replace the inpatient services currently offered at St. Luke's and St. Elizabeth's. It's a $500 million to $600 million project that could change downtown Utica for years to come -- and it all comes with a state grant footing half of the pricetag. 

It's a project leaders have talked about for months.

"Last September, to think it was the first time to introduce the topic at the board of directors meeting, and every meeting since then, and many of our committee meetings we talked about the possibility of actually doing a hospital and at some of those meetings we talked about where might that hospital be located," said Scott Perra, president and CEO of the Mohawk Valley Health System.

The proposed location for the hospital is here between Columbia and Oriskany streets here in downtown Utica, close to the Utica Memorial Auditorium.

"We wanna make sure that with any new healthcare facility it's centrally located so people can easily access it," Assemblyman Anthony Brindisi said. "And also, I think the added benefit of having a hospital downtown is it's gonna provide an economic boost for existing businesses that are down there, and at the same time, the area that they're proposing cleaning up a lot of the blighted buildings that are over there right now".

As of right now, leaders say the merger shouldn't lead to layoffs.

Existing campuses at St. Luke's and St. Elizabeth's could become new homes of other establishments.

Officials say there will be a new facility, but the Mohawk Valley Health System has some work to do before they can receive the $300 million grant.

"It's going be a process involving the community and working with the hospital, and the Department of Health before the money is released to the state to help construct a new hospital," said Brindisi.