THE STATE AND THE MIDLANDS should capitalize on Gov. Mark Sanford’s idea to sell the State Hospital site on Bull Street.

The S.C. Department of Mental Health does not need the 178-acre site, the development of which would greatly benefit the city of Columbia.

The state houses 300 patients and various functions at the Bull Street property, but it does not come close to using most of the spacious campus. The state could house the patients and other functions elsewhere in the Mental Health system. The biggest challenge would be finding new homes for about 60 mentally ill children and teens. The agency should work diligently to place those children near their families.

Mental Health officials estimate closing the historic State Hospital would save $5.3 million a year in operations costs. The governor says the site could sell for $30 million to $50 million, which he wants to use to fund the state’s health care system or some other pressing need.

Mental Health officials believe the agency should get the money. We disagree. The money should not go to the agency just because the land is under its auspices. This is state-owned land; money from its sale should go into the general fund.

We understand Mental Health, which has had its budget cut substantially in recent years, has a dire need for more money to carry out its vital mission. But the agency should seek those funds through the normal budgeting process.

The idea of this prime location becoming available excites Columbia officials. While the site might have once served the state well, this is no longer the isolated, quiet spot it might once have been for the mentally ill. It is now located near the core of a vibrant city that would be even more dynamic if this large site is developed.

It has been a long time since a piece of property this size has been developed in Columbia. There would be all sorts of proposals for the site. The state should invite the city to help determine parameters as to how the land would be sold for development. That could help make sure it is put to its highest and best use and not simply sold to any deep-pocketed developer with no regard to what might become of it.

For its part, Columbia should encourage private investment at the site. City officials should not attempt to acquire this land and develop it themselves, as they have done at CanalSide and in some other instances.

We agree with Mayor Bob Coble’s assessment that this would be a prime location for some mixed-used development, including single-family homes. The right developer could work wonders with this property, which includes the Babcock Building and several other historic buildings.

If the state and city work together, this could lead to a win-win for everyone. The state would gain a needed, although one-time, wad of cash from the sale. Meanwhile, prime real estate could be privately developed and returned to the tax rolls, a good thing considering the amount of land in the city that is not taxed.

More than that, such a development would help the city advance its goal of drawing more people downtown to live, work and play. This is not only good for the capital city, but is in the best interest of the entire state.