In Our View: A True Headquarters

As the city of Vancouver’s year-long transition to a consolidated city hall gains momentum, the benefits to the public in terms of convenience and to taxpayers in terms of financial gain are becoming more apparent. The first group of city workers will start moving into the former Columbian building in June, with the rest of about 300 public employees completing the move in August. The city bought the building last summer from the Bank of America, which had obtained the six-story structure as part of the newspaper’s completion of a Chapter 11 bankruptcy reorganization plan.

Here are the multiple benefits to this transition:

As Andrea Damewood reported in Monday’s Columbian, the city has put up for sale the two-story Esther Short Building, which is diagonally across the Sixth and Esther intersection from the new city hall. Listing price is $5.23 million, which if gained in the sale could not be considered profit because the city still owes $5.75 million on a lease-to-own agreement. But the twin advantages to this sale are that it would eliminate one city debt and likely would return the Esther Short Building to the status of a property taxpayer. And that would partially offset the tax-revenue loss of the new city hall’s shift from the private sector to the public sector.

Despite the lingering economic downturn, the chances of the Esther Short Building being sold are enhanced by a couple of factors. First, although there is ample office space available downtown, most of it is for lease. A company or investor could find the Esther Short Building attractive to buy as a corporate headquarters or general office building. A new owner might decide to use part of the Esther Short Building and lease the rest.

Second, the property has good parking, a premium downtown, and its position across the street from the scenic town-square-type park is another asset.

Long term, there could be a few million more dollars coming the city’s way from the sale of the current city hall. As Damewood reported, the 45-year-old building at 210 E. 13th St. is owned by the city, and the land is owned by Vancouver Public Schools. Officials from the city and the school district are discussing the future of the property.

The primary benefit that triggered this transition to a new city hall will emerge in coming months: the shedding of costs related to leasing several city offices spread over a large area. City officials believe this will save about $1 million a year. Although a few city services (notably police and fire departments) will not be joining the move to the new city hall, the centralizing of numerous city departments will make connecting with city officials more convenient for residents.

Another financial gain is expected to come from leasing the top two floors of the new city hall for a projected $500,000 a year. Already, tenants on the fifth and sixth floors are paying rent.

Finally, there are at least two boosts to downtown revitalization that could come into play. Merchants (and merchants-to-come) around Esther Short Park surely must be enthused about this summer’s influx of 300 workers to the new city hall. A second wave of workers would follow with the hoped-for sale of the Esther Short Building. Ultra-long-term, this surge of activity centered at the Sixth & Esther roundabout could serve as a solid connection between the new waterfront development area and the traditional heart of the city.