Wake County school board members and administrators are stressing the potential financial savings from moving the district's HQ from Raleigh to Cary.
As noted in today's North Raleigh News article, the estimate is the move to consolidate most of Wake's admin space to Crossroads Corporate Park will save $29 million over 20 years. In addition, most of the savings, around $20 million, would come in the next five years by selling three buildings, including the main admin building on Wake Forest Road.
"It's a good professional deal that will save the taxpayers money during a difficult time," said Chris Malone, chairman of the school board's facilities committee.
The savings are being stressed amid criticism about the financial cost of decisions such as abandoning the Forest Ridge High site.
The board had voted in November to hire the Grubb & Ellis commercial real estate advisory firm to do an analysis of how to handle the district's administrative office needs for the next 20 years.
The firm presented a report in March to the board's' facilities committee saying that leasing one location to consolidate all the office space would be cheaper than maintaining the current buildings, buying a new building or building a new facility.
Asst. Supt. Joe Desormeaux said they were able to take advantage of the current real estate market to get very favorabl lease terms to expand its office space at Crossroads.
Click here to view a PowerPoint presentation presented to the board in April about the benefits of consolidation.
Comments
The "savings" are misleading
Wed, 05/12/2010 - 10:39 — bnartistThe "savings" are misleading. The "Status Quo" baseline is not based on doing nothing. It assumes that it is "Very costly to renovate and retrofit aging buildings and systems". The baseline scenario assumes a massive stripping out and renovation of the Wake Forest Road building including temporary relocation of staff during construction.
Status Quo Baseline: Most Costly Scenario
New Construction* 26.5% less than Status Quo
Facility Purchase* 28.5% less than Status Quo
Lease Consolidation* 33.5% less than Status Quo
*Includes application of proceeds from sale of owned facilities
So, basically this is Malone
Wed, 05/12/2010 - 09:36 — danofncSo, basically this is Malone crowing about a "professional deal" that was started before he took office.
Is Malone as skeptical of the $20 million estimate for property sales (included in the savings numbers) as he was of the $15 million cost for moving H-6? I bet he considers that $20 million savings as guaranteed fact.
What are the odds of selling
Wed, 05/12/2010 - 10:07 — magnetParentWhat are the odds of selling 3 buildings in the next five years? There are houses on the market for that long.
As good as it gets!
Wed, 05/12/2010 - 21:32 — g88ky07Simply get some of the WEP attached at the hip real estate folks on it and they'll be sold in a matter of hours. When those folks manipulate the #'s, anything can be sold in short order!
Better than a magnet lottery.
Wed, 05/12/2010 - 13:29 — red_balloonBetter than a magnet lottery.
Magnet, Sounds like you
Wed, 05/12/2010 - 10:47 — CaryCurmudgeonMagnet,
Sounds like you are skeptical of the staff recommendation
Chickens
Wed, 05/12/2010 - 10:58 — magnetParentI just don't think they should count their chickens before they hatch
.
Kind of a catch 22 - the school system is in chaos right now, and they want to attract some business to move to Raleigh and purchase their Wake Forest Rd buildings and relocate here?
It's not as black and white as they are making it sound. I am fine with them moving to Crossroads, but I would like to see a list of all of the estimated costs, including the cost to move the offices and retrofit the new location to provide the services they do now. And will they be carrying 2 "mortgages" in the meantime?