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Lexington could be getting a brand new Urban County Government Center.
Constructing a new, eight-story city hall in downtown Lexington is the preferred option of a recently completed downtown facility master plan that looked at all of the city's downtown buildings. That new building would be built on the current site of the Government Center Annex, the annex garage, police headquarters and the Phoenix Garage.
The total price tag of a new government center and new offices for the police and the Fayette County Clerk's Office would be about $47.6 million, according to the study.
The facilities study, which began in mid-January, was intended to determine whether Lexington should repair the government center or build a new one.
FM Solutions, a Phoenix-based facilities management services firm, determined that it would be more cost-effective for the city to construct a new government center than to continue repairing its various downtown buildings. "We are a consulting firm that really likes to find ways to use your existing facilities, and you find us not recommending it here," said Curtis Slife, president of FM Solutions.
Annually, Lexington spends about $668,000 more to operate and maintain its downtown facilities than the national average, said Peggy Lundeen, an associate with FM Solutions. For example, Lexington spends $2.07 per square foot on maintenance compared with the national average of $1.48. Custodial services cost Lexington $2.20, compared to 95 cents nationally.
The financial analysis of the government center makes it clear that the maintenance and utility costs are much higher, said Vice Mayor Jim Gray. The condition of the building, especially the electrical infrastructure, is also outdated, he said. "This is a wonderfully historic building that we're all very attached to, but it's also a money pit that's being held together by baling wire," Gray said.
The downtown facilities study was initiated by Mayor Jim Newberry, who was concerned about the amount of money the city was spending to maintain and repair the government center.
The report confirmed his belief that the city has "massive deferred maintenance issues" and that it was not operating its real estate in a cost-effective manner, Newberry said. "What the report indicates is we're wasting money because of the inefficiency of the buildings, so the sooner we're able to implement some of the recommendations, the quicker we can spend our money more wisely."
It's unclear when the city would act on the study's recommendations or how the city would pay for a new government center when the fiscal year 2009 budget has a projected $35 million shortfall at the current rate of spending. The new fiscal year begins July 1.
The Urban County Council referred the downtown facilities master plan to the council's budget and finance committee for further study.
The study looked at all the city-owned garages and buildings in downtown. In all, the city owns 536,906 gross square feet of space in downtown. The total value of the buildings, excluding the value of the land, furniture, fixtures and equipment, is about $55.3 million.
FM Solutions developed five scenarios for building or repairing the government center. The options were developed using an assessment of the city's downtown properties, interviews and workshops with city employees. FM Solutions was paid about $94,000 for its work.
One option, called the "do nothing" scenario, calls for performing the necessary repairs to maintain the city's downtown facilities, which would cost an estimated $29.4 million.
The council needs more information before it makes a decision, said Councilwoman Linda Gorton. "I'm very conflicted. I want a functional good, solid structure for city hall," she said. "And I'm a proponent of preserving the old, but financially we're going to have to see what makes the best sense."
Only one scenario calls for remaining in the current building. The other four options call for a new government center; a new police headquarters on city-owned land outside downtown; off-site parking for downtown employees and shuttling employees to downtown; and constructing parking downtown for employees and citizens visiting the government center.
Highlights of the five options
Scenario 1, which would cost an estimated $46.8 million, calls for constructing a new seven-story city hall with retail on the first floor; demolishing the Government Center Annex, the annex garage, police headquarters and the Phoenix garage; and selling the current government center.
Scenario 2, which would cost about $46.6 million, calls for a new eight-story government center; four satellite county clerk/government services buildings throughout the city with adjacent parking; and selling the government center, the annex, police headquarters, the Phoenix Building and Phoenix Garage.
Scenario 3, the "do nothing" option that would cost about $29.4 million, calls for maintaining and repairing the government center, government center garage, the Switow Building, the annex, police headquarters, the Phoenix building and Phoenix garage.
Scenario 4, which would cost about $46.5 million, calls for buying the Chase building as a new city hall and selling the government center, annex and police headquarters.
Scenario 5, the consultants' preferred option, would cost about $47.6 million. It involves constructing an eight-story government center; leasing space along New Circle Road for the Fayette County Clerk's Office; demolishing the annex, annex garage, police headquarters and Phoenix Garage; and selling the government center and the Phoenix Building.
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