County in Washington State considers partnership to build administration building
A nine-story administration building could begin rising into the Washington skyline next year as Pierce County executives are considering recently released designs for a public-private partnership (P3) effort to build the facility.
The building, which was originally expected to be half as tall as the current design, would feature 300,000 to 340,000 square feet. Cost estimates are at about $90 million. It would be home to some 1,300 county employees.
The County Council is expected to vote on Jan. 27, 2015, on whether to enter into a public-private lease agreement with the developer. Such an agreement would be structured so that after the long-term lease ends (usually 20 to 30 years), ownership of the building would revert to the county. In the meantime, the developer would be responsible for any cost overruns on construction and would pay penalties for not meeting set deadlines.
Officials expect the lease rate as well as the project cost to be determined in December. The lease amount would include construction and financing costs, long-term maintenance fees and a developer fee. Savings from consolidating and leases for other space is expected to provide enough funds to offset the county’s lease payments. Centralizing county staff could save up to $39.65 million in taxpayer funds over 25 years.
Construction could start next year, say officials, with occupancy expected in late 2016.