Benefits of Buying Coldwell Banker Building
The city's number one reason for purchasing the Coldwell Banker Building (Metro / South Office Building) is financial. The city owns and operates the Beaverton Central Plant, which is located in the Coldwell Banker Building. The city pays $400,000 per year ($33,333 per month) to the owner of the Coldwell Banker Building under a space lease agreement.
As of March 1, 2012, the city's remaining obligation is $13.3 million representing the period April 1, 2012, through June 1, 2045. If the city purchases the building, this obligation would be eliminated thereby leaving the city in a net gain situation; spending $8,650,000 to eliminate a remaining $13.3 million future obligation and owning a 108,000 square-foot Class A office building.
Other reasons to buy the building include:
- Loan rates are currently incredibly low, making the purchase more affordable.
- City's commitment should help eliminate uncertainty and generates critical mass to attract additional development at The Round.
- Creates a successful model for the Civic Plan by addressing a "catalyst site."
- Builds on the momentum generated by the HUD Creekside District grant and EcoDistrict planning.
- Shows local business community and property owners that the city is serious about addressing downtown development issues.
- Eliminates a potential obstacle to restructuring the current Definitive Development Agreement (DDA), which has hindered development at The Round for years.
- The commercial/institutional component of the Coldwell Banker Building (Metro / South Office Building) will generate positive cash flow for the city. The structure follows current trends of municipalities using models based on market mechanisms to offset costs and reduce tax burdens.
- In 2016-17, we expect to be generating approximately $1.1 million per year from use that income to retire a substantial portion of the debt.
- As part of the Mayor's Ten Point Plan, the city continually looks for land banking opportunities that may provide future economic benefit.
- The Coldwell Banker Building (Metro / South Office Building) may provide the city with more flexibility to address growing space-needs issues at a cost well below any other options (the City has extensively studied this). The city would require a public involvement process to determine whether or not the acquired building could or should be used for city services.
- Provides some flexibility to possibly consolidate city facilities and further reduce rental costs for current off-site buildings.
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