City eyes property for new VA clinic.

Byline: Edward Russo The Register-Guard

PeaceHealth is hoping to bring a new Veterans Administration medical clinic to downtown Eugene, a move backed by city leaders interested in pumping activity into the heart of the city. The move could double the VA's Eugene staff to 150.

As part of its nationwide effort to provide medical and mental health services for the growing numbers of veterans from the Iraq and Afghanistan wars, the VA wants to find a new, larger home in Eugene-Springfield.

City leaders are hoping the VA moves to a property ripe for redevelopment: the PeaceHealth Medical Group building on Willamette Street, between 11th and 13th avenues.

The VA could begin seeking proposals from developers for medical space in the next 30 to 60 days, said Sharon Carlson, executive assistant to the director of the VA Roseburg Healthcare System.

Many veterans have lost their jobs in the recession - along with their employer-provided health insurance, she said. That is forcing more veterans to rely on VA health services.

Congress has appropriated $5.83 million to the VA for the upfront costs of a new Eugene-Springfield clinic, said VA facility manager Kermit Reich, also based in Roseburg. Much of the money will be reserved for interior building improvements, he said.

The VA now offers medical and mental health services at two buildings in the River Road area of Eugene. The agency wants to sign a 20-year lease for a building somewhere in Eugene-Springfield of about 82,000 square feet, but it could be larger, Reich said.

VA officials expect to spend the rest of the year finding a developer and a site, Reich said. Design would be done next year, construction in 2011 and the opening in 2012, he said.

PeaceHealth, meanwhile, is looking for a new use for its medical clinic building on Willamette Street. The clinic's doctors and staff next year are to move to a medical building on Hilyard Street near PeaceHealth's University District hospital.

"PeaceHealth is excited about responding to the VA's (request for proposal), and confident that clinical facilities can be made available and adapted to meet the VA's needs," said Phil Farrington, director of land use planning and development, PeaceHealth Oregon Region.

The VA now rents a 16,000-square-foot building at 100 River Ave., where it provides medical and mental health care, and physical rehabilitation. A 6,500-square-foot building at 2400 River Road offers vocational rehabilitation and services for homeless veterans, plus a substance abuse program.

The VA wants to consolidate services that are offered in both buildings, and expand such services as dental care, eye care, radiology and physical therapy, Carlson said.

The VA has about 75 employees in Eugene, and that number could double after the clinic's expansion, Reich said.

City Manager Jon Ruiz said he and other city officials are eager to bring the VA downtown.

"We will do what we can to make the project a reality," he said.

"This has the potential to advance a number of important goals: to redevelop a significant downtown site, bring jobs downtown and improve service to veterans in our community."

Ruiz earlier this year had proposed that the city increase the spending ability in its downtown urban renewal district by $15 million to $20 million, some of which could be used to pay for public improvements in support of a downtown VA clinic.

But urban renewal projects and financing can be controversial, partly because money used in the district would otherwise go to the city's general fund budget and other local governments. The City Council last month said it needs more time to figure out downtown priorities before deciding how to finance improvements.

Councilors are to resume discussing the topic on Monday.

The VA's Reich said the Willamette Street site has advantages for a clinic.

Lane Transit District's downtown bus station is close by, PeaceHealth's property has plenty of parking, and PeaceHealth's university-area hospital is just eight blocks away.

"It's kind of a good fit," Reich said.

But he expects other developers besides PeaceHealth to respond to the VA's request for office proposals.

"In the economic environment that we are in today, I would think that others would be interested in providing that space," Reich said.