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VA Clinic awarded to Spirit Lake

Veterans Affairs contracting office cites best value to government in making award

October 11, 2017
Amy H. Peterson - Staff Writer ( , Estherville News

Estherville Area Partnership for Growth Director Lyle Hevern said, "It's some of the most depressing news I've received in some time."

The U.S. Department of Veterans Affairs contracting office, located in Coralville, awarded the contract for an office and clinic space to a Davenport developer. The clinic will be located in Spirit Lake again, not in Estherville. A coalition from Estherville developed a proposal with the purpose of the VA choosing to locate the clinic in Estherville.

According to a letter from Melissa S. Johnson, Lease Contracting Officer, the property will be located at 1800 Royal Ave. at the corner of Highways 9 and 71 in Spirit Lake for a building with 9908 square feet with annual rent in the $300,000 range for a 15-year term of lease. The federal government will make lump sum payments in the amount of $1,689,550. The VA had solicited 10 offers and received nine proposals, including the one from Estherville.

Darwin Goodspeed, Director of the Sioux Falls Veterans Healthcare System, said several factors went into the decision to keep the clinic in Spirit Lake, including the perception that the clinic will be centrally located.

The regional clinic serves about 2,500 veterans; the expansion will allow for a capacity of 4,000, and the clinic will grow from three providers currently to five. Goodspeed said Thursday there is also a possibility to expand to additional services such as mental health and optometry.

Construction may take at least a year for the new facility.



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