The future of the Morisset Hospital site remains unclear, despite confirmation that services and patients will be relocated to a new facility at Maitland.
The government announced on Friday that planning was underway for a new, purpose-built facility that would offer a transitional model of mental health care and include general and forensic mental health services.
This will involve the relocation of the Morisset Kestrel medium secure forensic unit as well as the adult acute and older persons services unit.
Consultation with the staff, clients and carers about the relocation, which is expected to be complete by 2026, is underway.
A spokeswoman for Mental Health Minister Rose Jackson said all affected staff would be offered jobs at the new facility.
While some staff were reportedly blindsided by Friday's announcement, Lake Macquarie MP Greg Piper said the news was not surprising.
"Questions about the future of Morisset Hospital have been increasing for some years in the local community and most will not be surprised about this decision. The new Maitland Mental Health facility will be a modern, purpose-built facility which will better meet the needs of clients and staff," he said.
"I welcome the government's commitment to consultation with the staff, clients and carers on the planning and design of the new facility and the transition from Morisset to Maitland."
The project is part of the NSW government's $700 million mental health infrastructure program, which aims to support mental health care reform.
The government said no decisions had been made about the future of the 1,244 hectare site, which would be worth hundreds of millions of dollars on the open market.
Mr Piper called for extensive community consultation on the site's future.
"Morisset Hospital dates back to 1909 and was an important part of the Southlakes and Lake Macquarie's history. There are many people and families that have significant personal history with the site and I'm certain that they will want to have input into any decisions," he said.
"The community needs to have a say on the future of this site. There needs to be extensive community consultation and a heritage review undertaken before any decisions are made."
Wildlife advocate Jayne Cvetanoski said she was concerned about the future of the area's large kangaroo population.
"It's very sad for the wildlife and especially the kangaroos that call this area home and have done so for many years," she said.
"Where will they all go? The hospital was closed to large volumes of tourists to help both them and the hospital patients. With the amount of roos in this area, the land they can freely live on is dwindling rapidly and being landlocked is a grim reality."
She said the area did not have the infrastructure for more housing developments.
"The traffic through Morisset both mornings and afternoons is a well known and documented nightmare," she said.
"There are also heritage buildings onsite. Both the former Stockton and Peat Island facilities sit vacant and in disrepair. Is this how the hospital will also end up if the greedy developers don't get their hands on the land?"
