There are pros and cons of the New Orleans purchase of the Chevron building for its NewCity Hall.Last week, both Council-At-Large Arnie Fielkow and Mayor Nagin took opposite positions on the issue.The debate is expected to be heated and could easily spill over into Mayoral elections politics.Here are two positions:
Mayor Nagin:
The City of New Orleans would save more than $45 million over the next 20 years by purchasing the former Chevron building and using it as a new City Hall.
By moving into Chevron Place and consolidating City departments under a single roof, the City would save a total of $920,000 annually in rents that are currently paid to house various offices and agencies, many of which were displaced after Hurricane Katrina. In addition, the City expects to save nearly $1.35 million per year in utility payments, maintenance costs and repairs. Together, these savings total approximately $2.3 million a year. The City would see a full payback on its investment after only 5.28 years.
"This move is a financial no-brainer," said Mayor C. Ray Nagin. "With this purchase, we would be able to provide more efficient service to our constituents, ensure a much better working environment for city employees, and save significant dollars for taxpayers. This is a good decision for now and for the future of our city."
On June 16, Mayor Nagin signed an agreement with Chevron to pay $8 million for a 21 story office tower at 935 Gravier St, a two-story building at 919 Gravier St., and an eight-level parking garage at 218 O'Keefe Ave. This established a firm contractual commitment between the City and Chevron. The signing also began the 45 day inspection period before closing 20 days thereafter.Mayor Nagin plans to relocate City Hall from its current location at 1300 Perdido St. to the new facility.
In addition to the purchase price, the City anticipates costs of $486,335 for expenses associated with the purchase and $450,000 for moving costs. Renovations of $3 million are anticipated, including refurbishments for the City Council Chambers and minor build-outs necessary elsewhere in the building.
The City plans to use FEMA reimbursements dedicated to the current City Hall, capital improvement dollars and some bond funds to purchase the building and pay for other related expenses.
"The purchase of this facility will not impact any of our recovery projects," said Mayor Nagin. "Since Hurricane Katrina, we have had to be creative and to multi-task in order to complete projects. We are doing the same now, and we cannot afford to miss this once-in-a-lifetime opportunity. If we don't act now, this deal will not be possible."
For more than 20 years, city officials and the public have discussed their desire to relocate City Hall. The current building, which was constructed in 1955, needs major repairs, is not energy efficient and contains large amounts of asbestos. The building also needs repairs of at least $5 million as a result of damages sustained by Hurricane Katrina. In addition, the City now pays nearly $1 million per year in rents for offices that cannot be located at City Hall.
Chevron Place was constructed in 1983 and a $10 million renovation was completed in 2006. It is more than 20,000-square-feet larger than the current City Hall. In addition, Chevron Place has received significant upgrades to its plumbing system, has state of the art data and communications capabilities, is energy efficient and has a roof with a 10-year warranty.
In contrast, the roof of the Perdido Street building is significantly damaged, the building has poor energy efficiency, and the plumbing system needs major upgrades and the mechanical and electrical systems require replacement. In addition, Chevron Place is located to many RTA street car and bus lines, and is located adjacent to several private parking garages.
The price the City plans to pay for Chevron Place is below the market price of other downtown buildings. It would cost about $80 million for the City to construct a new building of similar size and features.
On Tuesday, the City Planning Commission approved the acquisition of facility and said "Chevron properties are suited to house City Hall offices." The Commission also noted that citizens have asked for a new City Hall and specifically referenced the following:
- The Unified New Orleans Plan for District 1- Chapter 6 (page 52) stated that
City Hall may be too small and needs complete renovation and that it may
need to be replaced.
- The Unified New Orleans Plan for District 1- Chapter 6 (page 53) stated that
there is a great potential for the redevelopment of the Hyatt and adjacent
properties that extend to the CivicCenter and DuncanPlaza particularly if it
fosters a stronger pedestrian connection between the Superdome and
downtown to the riverside of Loyola Avenue.
- The New Century New Orleans Master Policy Plan- Central Business
District (page 23) Item 3 Maximize the economic development of the
Central Business District by providing a welcoming environment for
everyone.
- The 1999 Land Use Plan for District 1- Central Business District -
did not anticipate the possible relocation of City Hall but the area
that the new City Hall may be located is for general downtown
development which is mostly offices and therefore compatible.
The City has posted a fact sheet on its website, www.cityofno.com (click here), with information about the current facility and Chevron Place. The sheet lists the benefits of the new building and provides financial information regarding the proposed transaction. Citizens are encouraged to view these documents.
By Councilman Arnie Fielkow
Much discussion over recent days has centered on whether or not the $8 million purchase of Chevron Corp.'s office tower at 935 Gravier Street and two associated buildings, a complex known as Chevron Place, is beneficial to the City of New Orleans and its residents. I commend Mayor Nagin for wanting to upgrade City Hall, and present a better image for the seat of city government - objectives which I also share. However, I ultimately feel the prioritization, timing and proposed relocation site is not, at this time, in our citizens' best interest considering the City's existing needs.
"A City Hall relocation is a topic which merits continued study and planning, particularly regarding the synergies which can be created with other projects planned throughout our downtown areas. It is my hope that such work would involve more public input, further consultation with business, civic and elected leaders, and be consistent with a 21st century image of New Orleans.
"I look forward to receiving the detailed information and documentation requested last week by the City Council and yesterday by the City Planning Commission, but my reservations at this time include the following:
· Prioritization
Given New Orleans' great needs in the recovery efforts following Hurricane Katrina - and the ever present limitations of services and facilities that contribute to citizens' quality of life - I do not believe that using undedicated funding for the purchase of a new City Hall, and the additional ancillary costs, is in the best interest of the citizens of New Orleans.
The $8-million purchase price, combined with currently undetermined build out, relocation, and other related costs, will necessitate the use of monies, i.e. the proposed $3.8 million in undedicated bond funds, which could instead be used for more important areas to enhance the quality of life for our citizens. Great city needs such as the reopening and enhancement of playgrounds, police and fire stations, street repairs, etc., certainly should be top priority when competing with limited city funds.
While it is important for all of us in city government to multi-task, I cannot in good conscience support this proposed relocation of city government when these kinds of pressing needs remain unmet. This is not to say a modern City Hall is not needed, but as residents are forced to do every day in their own personal lives, we should prioritize and undertake projects in a timeframe consistent with those priorities.
· Further Planning and Timing
Given the above, I would like to see additional planning be conducted with respect to the objectives for a new city government complex, and how those objectives fit into an overall master plan for the revitalization of downtown New Orleans (including the proposed entertainment district around the Superdome). This will entail much more discussion with the public, as well as civic, business and elected leaders, so that the best site can be determined. A new "front door" for the future of New Orleans can in fact be achieved but I do not believe the current transaction has had the necessary level of input.
Further, I feel the current transaction to relocate City Hall is ill-timed bearing in mind the City is on the threshold of new leadership both in the executive and legislative branches of city government. I believe the new Mayor, City Councilmembers and the public at large will want, and should be able, to weigh in on such an important decision. In this vein, I would propose the creation of a six-month Blue Ribbon Panel consisting of the City's living former Mayors and Councilmembers, all of which have previously examined the topic, who can help counsel our future leaders on this important subject matter.
Finally, the timing of the current transaction is problematic as we are currently within the 2009 hurricane season.
· Proposed Site
Having recently toured the Chevron building, I am unconvinced that this location is the best fit for, and image of, the seat of New Orleans city government. I question whether the site's aesthetics best represent the image of city government and further question the logistics of operating a constituent-friendly government in such a compact area. I would recommend that if and when a relocation is pursued the City look carefully at alternatives, including other city-owned buildings, which might present less costs and provide the 'wow' factor which would present a better image for New Orleans. Any such alternatives should be part of a comprehensive planning effort, which includes a full fiscal impact report, constituency access analysis, traffic impact study and a proposed re-usage of the existing City Hall site.
"I look forward to further engaging with the Administration on this important topic and partnering with civic, business and elected leaders in selecting a plan which will be in the best, long-term interest of New Orleans and its citizens."
If our mayor, Ray Nagin, says it's a financial no-brainer, then we should move forward and do as the mayor suggests. Has he ever let us down in the past? Exactly. That's why I support our mayor, Ray Nagin. Written by brain dead at Auger
on 6/29/2009
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How could anyone trust anything that pukes from the mouth of Nagin. We must assume he is lookign for personal profits from the Chevron deal. Arnie Fielkow cares about New Orleans and is trustworthy. There is no choice on who to believe. We're already hearing some much inflated dollar figures for the purchase and remodel and there is still marked difference between numbers quoted by Nagin and those of other more knowledgeable people. Written by Noladusde
on 6/29/2009
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