Lincoln VA Medical Center
600 South 70th Street
Lincoln, NE 68510
Phone: (402) 489-3802
Many of VA’s medical campuses have underutilized property that may be converted to cash or in-kind services under its Enhanced-Use Lease (EUL) authority, allowing VA to build needed facilities to continue to deliver the highest quality of healthcare. The VA Office of Asset Enterprise Management has identified the Lincoln VA Medical Center (VAMC) campus as one of those sites.
The VA Nebraska Western Iowa Lincoln campus provides acute and chronic psychiatric care, substance abuse care, extended care, primary and specialty ambulatory care and support services to over 43,000 enrollees in the Nebraska and Western Iowa Market. Located in the state capital city, the Lincoln Division garners considerable support from the general populace, service organizations, and Nebraska Legislators. Although major buildings were constructed in the 1930’s vigorous maintenance and remodeling projects have enable this facility to comply with environmental and structural codes.
The Lincoln VA hospital campus has changed considerably since it was built in 1929. By 1950 the patient capacity had grown to over 300 inpatients and almost 400 full-time employees. Due to recent consolidation of services between the Nebraska VA hospital campuses and a slow decline in patient numbers, there is a substantial amount of vacant or underutilized space in Lincoln. The largest closure occurred in 1998 when the ICU and inpatient wards were shut down. Other services were downsized or closed at his time including surgery, library, chaplain and dietetic services. Many of the out buildings are also vacant or underutilized.
The structures and property identified for this proposed Enhanced-Use Lease would be all of the existing buildings and land at the Lincoln VA site. Lincoln VA sits on 59.7 acres located within the city limits of Lincoln, Nebraska. The property is bounded on the west by a main street (70th street), residential areas are on the south and east boundaries, and commercial businesses are on the north boundary area. The site consists of eight buildings, including the main building that was constructed between 1930 and 1931. Other smaller structures have been added to the site over the years, the most significant being the outpatient clinic, building 45, which was constructed in 1984.
The property lease would be for up to a 75-year period of time with the structures and property reverting back to the VA at the conclusion of the lease. In exchange for the space and land the developer would provide the VA with a Community Based Outpatient Clinic (CBOC) to meet all the existing and future workload projected for the Lincoln facility. The developer will be responsible for all costs associated with the renovation of historic buildings, maintenance, building/parking repairs, utilities, grass cutting, snow and leaf removal, and all security and fire protection.
VA intends to have the Site assessed and then issue a Request For Proposals (RFP) for the redevelopment of the Project, and will enter into a EUL agreement with a Developer who provides VA with the best proposal to construct a project that will provide in-kind consideration of a new 115,000 s.f. VA outpatient building on the current campus, and/or additional in-kind consideration which may include the provision of goods or services as benefit to VA, including construction, repair, remodeling, or other physical improvements of VA facilities, maintenance of VA facilities, or the provision of office, storage or other usable space.
Potential EUL uses for this prime parcel of land include, but are not limited to, an outpatient facility, consolidation/realignment, medical facilities, research facilities, energy facilities/co-generation, skilled nursing homes, assisted living, affordable, independent, or dependent senior housing, transitional & low-income housing, child care centers, adult day health care, VA Office Co-locations. VA intends for the private sector to have the opportunity to receive a market rate return from development activities, leasing of rentable square footage, and continuing property management at the Lincoln, Nebraska Campus. VA proposes to lease the land to the Developer for a term in line with the proposed development.
The Developer will finance, plan, redevelop, as well as operate and manage the land/buildings to be developed for the term of the lease. The specifics of the potential for VA shared management of the property to be determined in the RFP process. VA will convey a leasehold interest in the land and existing improvements. Ownership of the new construction developed on the parcel during the term of the EUL shall be with the EU lessee. However, ownership of all facilities and improvements except for trade fixtures will revert to VA upon expiration of the EUL. To finance the Developer’s improvements and activities, the Developer will be permitted to pledge as security the leasehold interest in the development. However, the Developer will not otherwise be permitted to encumber the lease property without VA’s consent, nor will it be permitted to subordinate, limit or otherwise place any restrictions on the U.S. Government’s fee interest in the property or the Department's interest in the EUL.
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If you have any questions, please to send an email to vaeulLincoln@va.gov.