Downtown Office Space Consolidation
formerly "New City Hall"
CIP 840-607-3009
Summary
This first phase of the New City Hall Project, which commenced in September, 1994,
provided architectural and planning programmatic information to establish facility
size and budget. Also included was project phasing and schedule, analysis of which
Departments will be housed within the building, environmental site assessment and
financial analysis.
The following is the project sequence of events:
- New City Hall programming study including space needs and environmental site
assessment.
- Downtown Business Group (DAA, AARO, RECA Greater Austin Chamber of Commerce)
study recommending the purchase of an existing downtown building containing
approximately 325,000 NUSF.
- Presentation to City Council of the Downtown Building options assessment and
financial analysis with a recommendation to purchase a facility.
- Investigation of long-term lease / master lease options for currently occupies
downtown office space.
Status
On February 29, 1996, the City Council approved Amendment #2 to the professional
services agreement with Keyser Marston Associates, Inc., which will add a real estate
consultant to their downtown redevelopment team. Building on the recommendations made
by the Business Group, the real estate consultant will investigate current and actual
opportunities in the following areas:
- long-term lease consolidation for 325,000 NUSF (net usable square feet),
including contract with the buildings currently occupied by the City, and including
an option to purchase
- purchase of an existing building or campus of buildings comprising 325,000 NUSF
- public/private partnership for constructin of an new City Hall with 325,000
NUSF
The consultant team of Keyser Marston / Oxford Commercial made a presentation to City
Council in May, 1996. Based on the decision not to pursue new construction or
lease-purchase options presented, City staff and the consultant team are
investigating office space consolidation into a downtown long-term or master-leased
facility.
Issues
A Downtown Development report was given to a City Council Work Session on January 5,
1994. The report gave an overview of the activity within the City's downtown
including proposals for a New City Hall, a Downtown Art
Museum, and downtown malls. The recommendation was made that the City should take
pro-active role in the development of downtown and that the City should maximize it's
investment potential. Toward this end, several analyses and studies should be
conducted which look at the impact of the separate issues on the overall downtown
development. One of the contributing elements to this overview which should be
investigated is the Downtown Office Space Consolidation Project.
Description
Of the 325,000 NUSF the City of Austin currently occupies in the Downtown area the
City currently leases over 225,000 NUSF, with an annual expenditure in excess of
$2,700,000. By the end of 1998, many of the current leases will be re-negotiated. It
is projected that the City will spend approximately $4,000,000 for the same leased
space in the first year of the renegotiated leases.
Basic Data
Project Manager: Nathan Schneider, Department of Public Works and Transportation,
499-7131
Amount Appropriated: $817,500
Revised January 9, 1997
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