MISHAWAKA - The nearly vacant Liberty Mutual Insurance Co. building in downtown Mishawaka is one step closer to becoming the new city hall and police headquarters. The city’s redevelopment commission gave city administrators the green light to enter into a purchase agreement to buy the building.

According to WNDU-TV, the city will pay $2.35 million for the approximately 93,000-square-foot office building, which had appraised for $5 million. Mayor Dave Wood says the money will come from tax increment financing.

In February, the insurance company announced its plans to eventually move its 470 employees out of the building and sell the property.

The South Bend Tribune reports the city will begin designing the new facility and Liberty Mutual will occupy and maintain the building until the sale is final.

The city says it has outgrown the current city hall and police department space. Those offices, along with the city utilities office, would be moved into the Liberty Mutual building sometime in early 2020.