The Old Naval Hospital on Pennsylvania Avenue Southeast is slated for some much-needed funds in the mayor’s upcoming budget proposal.

According to D.C. City Councilman Harold Brazil (D-At Large), the mayor will include roughly $2.5 million for renovations to the Civil War-era structure in his fiscal 2005 budget due for release next week.

The Office of Property Management is currently reviewing proposals by two groups seeking to lease the dilapidated building: one by the Old Naval Hospital Foundation to turn the 16,000-square-foot structure into the Hill Center, with space for the Southeast branch of the D.C. Public Library and community groups’ activities and offices; and another, put forward by the Art of Living Foundation, to use the former hospital as the headquarters for its D.C. chapter.

Congress earlier this year approved $1.5 million in its omnibus spending bill for the Hill Center project.

An additional $342,000, intended for improvements on the hospital’s south portico, is currently on hold pending further review of the city’s capital budget.

— Bree Hocking