Courthouse Square Internal Staff Team Minutes

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had addressed this question in eazlier discussions that this is a starting point to make an equal ~ comparison in rental costs. Don Palmer had made a statement in his presentation that with the square footage represented, you couldn't find that requirement in the private mazket. There are also adjacency issues for several departments to have close pro~mity to each other. Excluding the Franklin building tenants, the departments that would need to move would include: Boazd of Commissioners, Children & Families Commission, Legal, General Services, Fiscal, Risk Management, Ta~Treasurer and Community Development. Outside private lease rents will continue to escalate on average 2-3% per year on all rent, not just the operating expenses as calculated in Courthouse Square project. Carol Fischer returned the conversation to questions directed by the press. It is not what the savings in 25 years will be, but what is it going to cost us to jump from current levels (81.5 cents) today to the $1.30 proposed for Courthouse Square. How will that question be addressed. Ken responded that regardless of what happens, we have to move out of the Courthouse and relocate the employees that have been temporarily moved out to the Best Building. Also county is looking at increasing rents to build up a building fund reserve for future needs. Ken will field responses to the issues arising in this area, but when the questions slip into the technical area, he will shift to Don Palmer for assistance. General Services has already been asked to provide rent figures to the press. Copies were also available for staff. Staff discussed the issue of staying in the downtown area vs. renting outside the downtown core, which is just as costly. Cunent department rental rates for the Franklin Building include debt service and costs to maintain building now, but don't include any future remodels, expansions or building reserve fund. Other county building's rates do not include debt service, replacement or major remodel in their rental rates. A general answer needs to be developed for consistency in dealing with these issues for the departments to follow. Several issues were identified: • Courthouse Square is the most cost efficient way to accommodate future growth needs. There is need for additional space in long term growth; the Franklin Building is the surplus square footage to meet that need. • Another option is to stay in the Franklin Building and lease out more space in Courthouse Squa.re, but it brings with it the downside of higher interest rates as public owner and greater risk on leasing out space. • Another alternative is to reduce the size of Courthouse Square. Because of the infrastructure involved, reducing the size by even one floor is not cost effective. • The focus needs to be on the county as a whole, not individual departments. • Vacating the courthouse for court needs. ~ • Finding a revenue source for a building reserve fund for future needs. Page 2 of 4