NEW YORK (AP / CBSNewYork) – The city has announced a deal that preserves a historic building and creates a new school on the site of a former Greenwich Village hospital.

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City Council Speaker Christine Quinn says the plan also calls for a reduction in the number of new apartments, funds for affordable housing and arts education in local schools.

It doesn’t include a new hospital to replace the shuttered St. Vincent’s.

But Quinn said, “As part of the agreement, we are going to have a 24-hour comprehensive health care center on 7th Avenue.”

Last year, a bankruptcy court approved the sale of the hospital to Rudin Management. The developer will turn the historic medical center into a walk-in emergency facility.

Community activists told The New York Times they still hoped for a full-service hospital. They said otherwise the deal addressed their concerns.

Another piece of the plan is the city buying a seven-story building at 75 Morton Street.

“That is going to be made into school space for West Village residents.”

Quinn says Rudin has also agreed to build a permanent public park on 7th Avenue between Greenwich and 12th streets, and it will contain an AIDS memorial.

The plan needs approval from the City Planning Commission and the Landmarks Preservation Commission.

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