The city of Vancouver is “very seriously” considering consolidating most of its staff into one large building, a move intended to save $1 million a year, Mayor Tim Leavitt said Monday.
Vancouver spends about $2 million a year to house its 1,000 employees in six buildings spread over downtown and as far out as Northeast 77th Avenue. The idea of buying or leasing one large building has long been part of the city’s long-term goals.
“We are considering very seriously a large transaction that will save the taxpayers of our community significant dollars,” Leavitt said. “Taxpayers continue to demand that we find ways to become more efficient.”
There aren’t many structures around Vancouver that would be able to house the city’s staff. But the former Columbian building, now owned by Bank of America, would have adequate space.
No Vancouver official would confirm the city is interested in the former Columbian building.
The city council Monday night spent just under an hour in a closed executive session to discuss real estate property acquisition, according to the council agenda. Only the seven-member council and relevant city officials may attend executive sessions.
In a budget document provided to the city council last Friday, City Manager Pat McDonnell proposed a total of $6.7 million in operational cost reductions to help fill the projected $10 million deficit in Vancouver’s 2011 budget. A total of $1 million of those costs are shown to be through “facility consolidation.”
McDonnell said in late 2008 the city was serious about buying the 115,046-square-foot building at 415 W. Sixth St., but wasn’t sure it could afford it. At the time, the developer of the site, Downtown Vitality Partners, was asking for $41.5 million — 87 percent higher than the $22.19 million value listed on county tax rolls. Downtown Vitality Partners is owned by the Campbell family, which also publishes The Columbian.
However, the structure was forfeited to Bank of America as part of The Columbian’s bankruptcy settlement in February, and is likely listed for far less than what the Campbell family wanted. The building’s current assessed value is $22.7 million.
Bank of America declined to say if it was engaged in any negotiations surrounding the building’s sale.
Should the bank’s price be at or even below the assessed value, the city could save a lot over purchasing land and constructing a new city hall. For example, Scott Campbell, Columbian publisher, said that the construction, design and land buy for the former Columbian building was “well in excess” of the $41.5 million he tried to sell it for.
“If there are opportunities, this city council has given the city manager direction to look for anything that may save us in operational costs and leases,” Leavitt said.
Five leased buildings
Vancouver leases five buildings at an annual cost of more than $1.65 million. It owns City Hall on East 13th Street, but leases the land from the Vancouver school district, and spends about $300,000 on operational costs there.
It’s not immediately clear where the money for a purchase might come from, although lease-to-own or other alternative sale options could be a possibility. As of 2008, the city had saved $2.8 million from the sale of two buildings for a new city hall.
Also in 2008, McDonnell wrote in his 2009-2010 biennial budget summary that he recommends “that the city move forward either with the construction of a new administrative facility or with the purchase of an existing facility within two years. This action will result in significant savings for the city over the long term.”
Campbell broke ground on the former Columbian building in March 2006. It is certified as “gold” under the Leadership in Energy and Environmental Design rating system.
While Washington law allows for executive sessions to discuss real estate deals, any final decisions must be done by the city council in public meetings, with opportunity for public comment.
