Adaptive reuse of an institutional building, a former hospital wing, school or correctional facility, works when the structure already has separate rooms, plumbing runs and a robust envelope, and CMHC has published general research on this kind of conversion as one tool among several for adding housing supply without greenfield land.
Saskatoon's own supply growth has come mostly through new subdivisions like Brighton and Aspen Ridge, through secondary suites permitted by the City of Saskatoon, and through infill on existing lots, not through repurposing a large institutional building, which is a much rarer and more expensive project type even where it does happen.
If a specific building conversion is ever proposed in Saskatoon, it would go through the same City of Saskatoon zoning and building code review as any other change of use, the same process that already governs 1.63 months of active supply citywide. Get your hand-reviewed valuation from Joel Dyck.