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Gates Circle could soon become the site for a new YMCA facility as part of the $40 million redevelopment of the former Millard Fillmore Hospital campus.

YMCA Buffalo Niagara and TM Montante Development on Tuesday announced plans to assess the possibility of developing a new city-based YMCA facility that would replace its long-standing Delaware Avenue location in North Buffalo, which first opened in 1927.

The two organizations have signed a letter of intent to build a 70,000-square-foot state-of-the-art building facing Delaware Avenue. The new space would offer expanded programming and services, something the current building cannot accommodate.

YMCA would complement the planned $28 million Canterbury Woods retirement facility and a number of smaller retail shops and residential apartments that are also in the works.

TM Montante has sought a community/wellness center to be included in the redevelopment plans since the beginning of the project, Timothy Vaeth, the company’s president, said in a statement.

“Adding the YMCA to the development mix would create some dynamic synergies within the overall redevelopment plan,” Vaeth said. “Our goal, as we have stated from the outset, is to create a vibrant, people-based project that integrates well with the surrounding neighborhoods and something that serves the community.”

There is no timetable for the completion of the market study.

A final decision will need to be approved by the YMCA Buffalo Niagara board of directors and trustees.

email: bschlager@buffnews.com