NEW YORK CITY-Saint Vincent Catholic Medical Centers, which filed for bankruptcy protection last April, will sell its Greenwich Village campus to Rudin Management for $260 million and transfer its O’Toole Building to North Shore-LIJ Health System under an agreement announced Thursday, Rudin COO John Gilbert confirms. A hearing before federal bankruptcy judge Cecelia Morris to approve the deal has been scheduled for April 7, court documents show.

Rudin and SVCMC had forged an agreement in 2007 to build a larger, inpatient facility on the west side of Seventh Avenue and also redevelop part of the hospital’s campus on the avenue’s east side as a residential project. Although the agreement seemed to be in jeopardy after the SVCMC board announced that a heavy debt load and operating losses forced them to close the Manhattan hospital, Rudin president William Rudin told GlobeSt.com last spring that his company remained committed to the project.

In court papers filed Wednesday, attorneys for SVCMC called the agreement “a major milestone” for St. Vincent’s and its creditors, one that would “help restore healthcare services for thousands of people in the Greenwich Village community.” Court documents show that the proposed sale would include lots, pieces or parcels of land at 1 Seventh Ave., 133 W. 11th St., 143 W. 11th St., 148 W. 12th St., 158 W. 12th St. and 170 W. 12th St., collectively known as the East Campus; 76 Greenwich Ave.; and the O’Toole Building at 20 Seventh Ave. Rudin’s revised redevelopment plan for apartments on the site would not be contingent on any zoning or Landmarks Preservation Commission approvals, according to court documents.

North Shore-LIJ’s plans for the O’Toole Building call for the hospital system to invest $110 million to turn the landmarked structure into the Center for Comprehensive Care, which would include a 24/7 emergency department and a full-service imaging center. It could open as soon as fall 2013; Rudin plans to kick in $10 million to partly offset North Shore-LIJ's costs.

“Our goal is to deliver a highly coordinated, full continuum of care in an easily accessible facility that will be open around-the-clock, including weekends and holidays," Michael Dowling, president of North Shore-LIJ, says in a release. He adds, "Making this facility a reality, however, will require city, state and federal approvals, all of which are needed for us to move forward with this project.”