Building work on the new Feilding Health Centre may start before Christmas.
Agreements have been reached between the MidCentral District Health Board and the Feilding Community Trust over a land lease and building purchase of the Clevely Health Centre in the town.
This part of the negotiations had been holding up progress of the development of the new medical centre on the site.
Feilding Community Trust chairman John Culling said the trust was now in negotiations with the town's doctors on the head lease.
"We hope to have everything finalised by the end of June."
Culling said the head lease was the final major hurdle.
"Both parties - the trust and the doctors - have been working positively on a solution to it."
"If we get an OK on the head lease, the doctors won't be able to sign off until they have confirmed their sub-leases, which we understand they are in discussion with parties."
Culling understood the DHB services offered at the Clevely Health Centre would be accommodated at the new facilities.
It is expected that the new 2400 square metre facility would include a community pharmacy, radiology service, and laboratory.
A resource consent has been approved, but building and demolition consent applications have yet to be filed.
The trust made a submission to the Manawatu District Council this week in the draft Annual Plan hearings requesting that a loan of $2.5 million agreed to by the council in 2011, and carried over, be again carried over to the 2014/15 year.
The conditions of the original loan were for half to be interest-free and the other half subject to normal market conditions. Culling said he was waiting for the outcome of the request but didn't foresee any problems.
"Once the head lease is signed and the loan approved, it is estimated that it will take around two months for the final design plans to be completed.
"Then it will take around two months for tenders for contractors to be completed."
All nine practising general practitioners in Feilding formed a company, Feilding Health Care Partners Ltd, at the end of last year.
They have this week advertised for a clinical development co-ordinator.
The project manager working for the doctors, Doug McLean, was unavailable for comment.
- Manawatu Standard
The lower drink-driving limits from December are:Related story: Drink-drive limits lowered