It could prove to be the first possible step towards a hospital for south Niagara.

In his state of the city address, Niagara Falls mayor Jim Diodati stunned the crowd gathered at the Americana by announcing a Toronto developer has donated 30 acres of land to the city as a future site for a new hospital.

"I'm pretty happy for the Niagara south residents that we're one step closer to making a new hospital a reality," Diodati tells 610 CKTB News.

The site is located at Montrose and Biggar. Diodati says the land is already fully serviced with pipes and electricity already in place, saving millions in development costs.

"We've got water, we've got sewer, we've done our archeological, environmental and soil investigations. The site has passed all the test. It's shovel ready." he says.

The land is owned by the Grassl family.  After many discussions and meetings with the city, including a discussion on what exactly would be housed on the site, the Grassl family donated the property. 

South Niagara has been pushing to get its own hospital, concerned over a loss of services once the new St. Catharines hospital opens later this month.

Current NHS supervisor Dr. Kevin Smith has recommended to health minister Deb Matthews that a new, south Niagara hospital should be considered to replace facilities in Niagara Falls, Welland, Port Colborne and Fort Erie.

The Grassl family has commented on its decision to donate the land.  John Grassl says the "family stands ready to assist" any way it can.

(Video courtesy of Bullet News Niagara)

To hear CKTB's complete interview with Falls mayor Jim Diodati, click here.