The property, at US Highway 183 and Airport Boulevard, is the former home of the east campus of the state's School for the Deaf. The city will move the health department's offices from leased space along St. Elmo Road in South Austin and will apply savings from leasing to the purchase of the state property.

The deal isn't quite done, however. The city is checking asbestos on the state property and, if it proves too expensive to clean up, that could scuttle the plan.

If the deal proceeds, the city plans to occupy up to five buildings starting in March 2003. Classes in child care, work force development and food-handling licensing will be held at the site. Eventually, the city will move the rest of its health offices to the site and could rent remaining space on the campus to other city departments.

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