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Billy Wasson ' N ~~ ~ ~' r~ ` 1 ~ i Courthouse Square Coordinator Board of Commissioners INTERAGENCY MAIL 5alem Area Chamber of Commerce North Block TaSk Force Report Approved by Ghamber Governmental Affaire Committee, Auguet 10, 1999, unanimoub vote of 21 attendfng Approved by Chamber Board of D(rectore, Auguet 18,1999 Presented 5eptember 22, 1999 TaSk Force Mission F~cplore options for development of the North Block of Courthouse 5c~uare. Formulate a plan. Refine the plan with (nput from non-Chamber stakehoiders. Obtafn Government Afifafrs and Board approval. Commun(cate approved f(nd(ngs to the Marfon County Board of Commis5foners and the 5alem Area MasS Trans(t Distr(ct. Predetermination5 The followfng are sfgn(f(cant predeterm(ned facts and not subject to our plan: • The s(te size and maximum hefght are fixed. ~ • The current bu(Iding project will provide a construction pad capable of 5upporting five floors. • Exfsting government tenants need 258 underground parkfng stalis during normal bu5ine55 hours. Ex(5ting government tenants do not currently need the North Block building. Occupancy for other than County or Transit Dfstrfct use must provide market rate returns. • There is likely a future need for addit(onal County and Transit o~fice space. The county has not yet committed to efther a centralized or decentral(zed strategy. County budget managers are concerned with the po5sfbility of payfng h(gher internal rents for downtown off(ce space. They expect rent5 charged against their budge~Cs wfll increase from 83.5 cents to at least $1.20 per sauare foot. Key PointS of Negotiation Thls s(te (s environmentally clean and (n a des(rable area of 5alem. The bu(Id(ng w(II have three of four sides open for windows. However, con5tructfon downtown (s expensive and presently there may be lim(ted market demand for off(ce space (n downtown 5alem. Thfs project may be put out to bid only to find there are no b(dders. The County and Trans(t Dfstr(ct should reserve the r(ght to reject all b(ds. The County and TranSft D(str(ct have stated they w(II only seek market return5, not cost recovery and market returns. We do not believe the North Block project fs feasible for pr(vate development under cost recovery plus market return a5sumpt(ons. the County and TranS(t Dfstr(ct plan to retain the land and aliow a long term lease. This may be acceptabie to a developer, but the County and Trans(t pistrict should remain open to a sale of the land. A long term lease arrangement may be very hard to sell. The County ha5 not actually budgeted operatfng revenue from the NorCh Block and the Approved Yerelon 5.1 - Page t