Department of Veterans Affairs Central Office, Office of Facilities Management, (182C), 810 Vermont Avenue, N.W., Washington, D.C. 20420

X -- MIXED-USE/VA MEDICAL DEVELOPMENT COMPLEX SOL 559-89-02-08 DUE 031098 POC Contact: Tangela Cooper (Contracting Officer), 202.565-4307; Edward Bradley (Portfolio Manager), 202.565-4307; fax (202) 565-5115 The Department of Veterans Affairs (VA) through a Request for Proposals (RFP), is seeking a Developer to undertake, obtain financing for complete and thereafter be responsible for the management of a mixed-use and VA Medical Center complex on certain VA properties (including a 998 space parking garage) located at the campus of the VA Medical Center ("VAMC") in Durham, North Carolina. The development mechanism would be a long-term (up to 35 years) lease of properties located on the VAMC campus to a Developer who would finance and redevelop these properties into a "development complex" comprised of private sector and VA uses. The non-VA uses may include, but are not limited to to: hospitality, parking, retail, office (medical and commercial), long term care or institutional uses. The Department's objective is to obtain on a "no cost" or substantially reduced cost basis, a certain amount of research, medical office, and parking space as detailed in the RFP. At the end of the lease term, ownership of all on-site improvements will transfer to VA. The legislative authority for this proposed arrangement is 38 U.S.C. 8161, et seq., "Enhanced-Use Leases of Real Property. -- The developer may elect to utilize any or all of the property offered by VA for the term of the lease. The department may purchase space or services from the developer in connection with its requirements under the lease. As part of the consideration for the Enhanced-Use lease, the lease shall provide for periodic ground lease rental payments (to be proposed by each Developer) which may be applied by the VA toward any VA costs resulting from its use of space or services in the development complex. (0352)

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