Norfolk Daily News

Monday – February 11, 2008

Estimates of what it might cost to turn any of four finalist properties into new office space for the City of Norfolk are now in hand.

But it was clear from discussion at Monday morning’s Finance Committee meeting that the mayor and city council still struggle with whether to include other agencies in the building option.

Part of the difficulty is that the city hasn’t been able to pin down what the other seven groups could supply in the way of financing, though the groups have turned in estimates of office space needed. Madison County is the lone potential partner with taxing authority.

ALSO IN the Shared Facilities Group are representatives of the Northeast Economic Development District, Norfolk Area Chamber of Commerce, Madison County Convention & Visitors Bureau, Elkhorn Valley Economic Development Council, Norfolk Area Recruiters and Service Corps of Retired Executives.

“Are we writing off working with other agencies?” asked Councilman Erik Wilson.

There wasn’t an answer to the question Monday morning.

Mayor Gordon Adams said the concept of shared space may be flawed because, in his experience, there is little interaction between the city and the groups.

That was disputed by Tom Schommer, coordinator of the Shared Facilities Group, who said the groups report they do need to interact with the city.

The other agencies have turned in requirements of just under 9,000 square feet. But city officials say that number would actually double when including other needed space for a common building. The city estimates it alone needs between 17,000 and 20,000 square feet.

Schommer said the group has asked the city what it would cost if it partners with the city, but the group hasn’t received an answer and is awaiting discussion.

MIKE NOLAN, city administrator, said the city has plans for what it wants to do and has asked the group to indicate how much the members could contribute but hasn’t received the information.

Council President Jim Brenneman said including the groups could add as much as $1.2 million to the cost of a building, and the city has to be sure to protect itself financially.

A campus concept — rather than a joint single facility — seems to be the best solution, he said, as the other partners could decide where they want to locate around a municipal office building.

Madison County is the only of the entities with taxing authority and the ability to make a financial commitment, Nolan said.
“Why should the city be the capitalizer of that debt?’’ he asked.

Adams said a county representative has told him the county would go along with whatever the city decides on office space.

Any combined project could take several years to pursue, during which an architect could be hired to come up with firm costs, Adams said.

Nolan said the city’s elected officials also could raise taxes for such a project, but the message they have given to staff is that they don’t want a tax increase. There is no way to do a combined facility without a huge tax increase, he said.

“We’re telling you, we’re wanting to do this place for our offices as a stand-alone,’’ he said at the beginning of the discussion in outlining cost estimates for the four options.

DENNIS SMITH, public works director, said staff need direction by March 3 in time for a public hearing by March 17 on the city’s option to buy the former church building on North 13th Street for $650,000. The city now figures it would cost a total of $2.27 million to buy and remodel that property.

The estimated costs for the other three sites, which are all downtown: Nebraska Health and Human Services building at Fifth and Braasch, $2.17 million to buy and remodel; build new at the council chambers location at Fourth Street and Madison Avenue, $3.1 million; build new on Salvation Army parking lot at Seventh Street and Norfolk Avenue, $3.03 million.