SOUTH BEND -- The city's Redevelopment Commission signed off on a deal
Wednesday that will enable the reuse of a vacant downtown building
while providing more space for local veterans' medical care.
Commission members voted unanimously to buy the Gates Automotive Group campus along Western Ave-nue, north of Coveleski Sta-dium.
As part of the agreement, a Department of Veterans Affairs health
clinic will open in a portion of the empty Gates Toyota building
between Lafayette Boulevard and William Street.
The city will pay $1.9 million for the 13 parcels, and another $1.4
million to prepare the building and grounds for the VA clinic, said
Don Inks, the city's economic development director. The money will
come from revenue accrued in the downtown tax-increment finance
Inks said the city will recoup $1.7 million of that $3.3 million
outlay during the next five years.
Ambulatory Care Services, which contracts with the VA to operate
clinics, will pay $280,000 annually to lease the building, Inks said,
and the city will reap another $60,000 per year in lease payments from
the Gates service center still in opera-tion.
Marion, Ind.-based ACS has operated the area's existing VA clinic on