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VA lists reasons behind health center decision

Deal provides gov't best value

CENTER TWP — The U.S. Department of Veterans Affairs based its decision to build a new health center along North Duffy Road on more than money.

“The lease award was made on the basis of providing the best value to the government, which involves evaluating an offerer’s price and technical proposal, both of which were weighted equally,” said Genevieve Billia, a spokesman for the VA, in an e-mail.

Billia said the technical evaluation included a variety of factors, including the site landscape, the offerer’s past performance, the planned operation and maintenance of the facility, the architectural concept and building design.

“The proposal offered by Cambridge Healthcare Solutions PA, LP represented the best value to the government and specifically the site provided good road frontage, access to off-site amenities and the availability of public utilities,” Billia said.

Cambridge, a Virginia-based real estate firm, on Dec. 31 was awarded the contract to build the new two-story, 168,000 square-foot health care facility.

VA Butler Healthcare is to lease the center for 20 years, according to the lease.

The site was one of four considered for development after the VA canceled its previous agreement with Westar Development of Ohio to build the center in Deshon Woods in Butler Township. The VA at that time accused Westar of making false and misleading representations.

Representatives from Cambridge told township officials this month that the company’s history of development was a key factor to it being selected as the developer.

Cambridge last year began construction of a $150 million VA facility in Charlotte, N.C., and it is expected to open in 2016.

The new center on North Duffy Road will be on 46 acres that was part of Dale Herold’s farm property. The developer has first right of refusal to buy any of the remaining about 100 acres Herold owns surrounding the lot.

The site is about 1.4 miles away from the current VA campus on New Castle Road. It is also near the Butler Commons and Butler Crossing shopping plazas, which include two recently built hotels, a variety of stores and restaurants.

The VA’s rent is abated for the first 14 months of the lease, Billia said. The VA will pay about $7 million in rent and operating expenses in the second year of the lease, and about $8.4 million per year for the remainder of the term.

The total value of the lease is about $163 million.

The VA did not comment on the estimated construction cost of the building.

“VA can only speak to the cost of its lease contract,” Billia said.

The facility will be taxable and real estate taxes of about $467,000 are included in the annual rent. The real estate taxes will be adjusted once the facility is fully assessed by the tax assessor.

Under the agreement, Cambridge must complete the project in 31 months and the center is expected to open in 2018.

Cambridge representatives told township officials earlier this month that they expect to begin construction of the center by late fall.

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