Gallium Touts Citys Savings
That works out to an average of $15.45 per square foot.
In contrast, Gallium said the national average is $5.60 per square foot.
Other highlights from the Gallium report show that if the city agrees to its proposal over 30 years:
- The city would save $5.7 million in operational costs in a new building.
- The city would save $8.5 million on capital repairs to its current building.
- The city would save $8.6 million if it consolidated in a new building.
- The city would receive $4.4 million in parking revenue from a new ramp.
- The city would get $18.7 million in revenue from a Brownfield reimbursement if City Hall were declared obsolete.
- The city would receive $1.6 million in new tax revenue from the hotel.
- A new 125,000-square-foot City Hall and 250-space parking ramp would cost $19.8 million, a price tag that doesn’t include the cost of land. Should the hotel deal go through, the city would have lease-to-purchase payments of $52.6 million for 30 years.
But Gallium said the city would recoup those dollars over that time frame by cutting its operational costs, through savings from not having to make repairs at its current building, from new tax revenues, and from the $4.9 million it would get from the sale of City Hall.
There is disagreement, however, as to whether the city can legally enter into a lease agreement for longer than 15 years.