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CONSIDERING NEW CITY OFFICES

SHORT TERM AND LONG TERM OPTIONS

After discussion at the 5 p.m. Council workshop on October 23rd, City Administrator Don Uram recommended that the City of Victoria not enter into a lease agreement with the Victoria Creamery LLC but leave open the option for discussion. Councilmembers voted 5-0 to follow that recommendation.

Stated Administrator Uram, “In August we were approached by owners of the Creamery Building to lease office space. They offered us a five-year term at $17 per square foot ... In the short term, leasing is better for us. It would cost us about $150,000 per year which we can pay through our fund balance.”

The offer was made in regard to the Creamery project which has not yet begun and not in regard to the existing Old Creamery Building which was anticipated for demolition this past spring.

Mr. Uram said it would cost around $360,000 per year to amortize a loan for the city to construct its own office building. “It’s probably a two-year process to get to construction,” he said.

Remarked Councilmember Jim Paulsen, “Just when we thought we got the piano off our back, another piano comes along.” He was referring to the Victoria Field House which, he said, was costing Victoria $600,000 a year until the School District came along and knocked off $400,000 in a partnership agreement.

Mr. Uram said that in the city’s Capital Improvement Plan, a new Public Works building is scheduled for 2010 and new City Offices in 2011. “For the Public Works facility we just can’t go out and lease space. For City Offices we could lease on a temporary basis,” he said.

Victoria Building Official Tom Gray was asked to report on the condition of current City Offices. “There are ventilation and electrical deficiencies here,” he said. “Ventilation doesn’t happen in this building unless someone opens a door. When I started here, this was a gymnasium. We’ve retrofitted it for another use. We spend a lot of energy dollars on this building ... The indoor air quality is an issue. Computers are putting out tremendous heat.”

In looking at the larger scope of downtown redevelopment, Mr. Uram reported, “Terry Hartman has approached us about sharing 32 spaces in our city-owned parking lot [by Schmitty’s] for his new Waterfront project. We need to ask if we want to be in the way of development opportunities.”

He continued, “Downtown redevelopment and parking can go hand in hand, I think. We’d have 160 parking spaces if we built a parking deck in this [existing city office] space. It’s also about generating the tax base. I think that’s a good thing for the city.”

“We have space for City Offices reserved on the 13.5 acres,” said Mr. Uram. “It depends how aggressive the city wants to be. It could generate activity there.” That 13.5 acres across the city bridge is owned by the city.

Mr. Uram also reported, “Terry Hartman is proposing an expansion to the Clocktower, adding 2,600 square feet to each floor for a total of 5,200 square feet. There are currently 5,000 square feet on each floor.” In the audience that evening, Terry said he could oblige city office needs of the city and, when asked by Council, said he would not require a five-year lease agreement.

Asked Councilmember Paulsen, “Where are we going to get parking for the Clocktower expansion?” The implied nonreply was, “The adjacent Fresh Seasons parking lot.”

Another City Offices option is the main level floor of the Notermann Building, said Mr. Uram. With Parker Tannin’s closed and the possibility of Mackenthun’s moving to the Fresh Seasons Market, there would be 3,500 square feet available, “which would put us in a bind,” he stated. Current city office space is 2,000 square feet. Current council chambers/former gym is 2,300 square feet. Total building including bathroom facilities and hall kitchen is 5,150.

Stated Councilmember Kim Roden, “I can’t figure out which is most economical. We don’t have to pay rent here [current space]. I have to understand how much we’d have to spend and how we’re going to pay for it. Do we want to take up space in the downtown?” She said she envisioned a two-stage process for an interim site with a long term plan.

Stated Councilmember Richard Tieden, “The future [City Offices] is not really a temporary site. The 13.5 acres is our land. We can be creative there. I think we should think about how we can get there as soon as possible.

Said Councilmember Paulsen, “The plan/vision would be fixed once we touch that 13.5 acres.” Repeated Councilmember Tieden, “The fact is, that is our land and how do we get there? Once things get rocking and rolling we may have to get out of here sooner that we think.”

“Fiscal analysis would guide my decision,” said Councilmember Roden who commented on the nation’s current economic situation. “I’m still concerned about our ability to pay our overall bills.”

Councilmember Tim Amundsen referred to past council decisions which were perceived to be fiscally sound. “It was fiscally sound to build the Field House. It was fiscally sound to build the Water Treatment Plant. It was fiscally sound to buy the 13.5 acres. Yet look what happened? We need to ask ‘What if?’”

About the 160-space public parking deck that could be constructed in place of the existing City Offices, Tim pointed out, “We’re talking about property we don’t all own.” Other owners on Rose Street include Notermann Building, the Kirsch’s, and Floyd’s Bar.

Stated Mayor Mary, “I do believe we should look at the 13.5 acres and what can we bring to a development there. I do think we should not lease long term. I’d rather be pushed out of this building than be proactive. I’d like to concentrate on where we want to be permanently. I think we should take advantage of the energy of the moment.”

The city administrator will review the cost of a fiscal analysis, determine the total number of parking spaces currently in downtown Victoria, gather information on the health of current City Offices, and acquire details on lifestyle housing for the 13.5 acres. “Ultimately we won’t be able to add more square footage to the downtown until we’ve got more parking,” he said.

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