Background

Attached is a preliminary space needs study for a new City Hall in the Town Center. The Council authorized and directed the Administration to begin work on a new City Hall when it adopted the resolution accepting the Town Center Plan. I briefed you on the status of this project in several Manager Reports over the past few months.

This study is preliminary in nature. It is subject to change and we anticipate that it will be modified several times after it has a thorough review by the Council and later, the architect. However, we think the study provides good baseline parameters for what the City could reasonably expect to need in terms of space for the next 20 to 30 years.

You will note that the estimate for City Hall if we assume that it will contain the existing departments and functions is approximately 20,000 square feet. This assumes that all existing departments will grow over time but it does not provide for any new departments that the Council might create in the future. For example, looking through a 20 or 30 year window, it would be reasonable to expect that the City might establish a Parks and Recreation Department and/or a Community and Economic Development Department. It is also reasonable to expect that the Council may want to consolidate existing departments within the new building. For that reason, it would be advisable to construct a building that could be expanded.

We also looked into what the future needs of the public safety departments (Police and Fire) might be in the next 20 to 30 years. We did this for several reasons. First, both buildings are reaching the end of their useful life and will need to be either upgraded or replaced relatively soon. Second, we thought there might be efficiencies and cost savings that could be achieved if the Police and Fire Departments were combined with City Hall. You will note that the estimated additional need for space for these two departments is about 40,000 square feet.

We have pretty much concluded that a City Hall of this size (60,000 square feet plus around 2 acres of parking) could only work if it was located immediately adjacent to the town center, but not in it. A Main Street location has been prominently discussed. A 66,000 square foot Fred Meyer and a 60,000 square foot City Hall and all of the parking that would be required would likely take up too much space in Town Center leaving little room for anything else.

A New City Hall? Why Now?

There are a number of reasons why it is important for the City Council to discuss a new City Hall now rather than later. Some basic decisions must be made so that the Council can follow through with prior commitments and the Administration will have clear direction. It is important to move this issue forward because:

If the College is successful in its effort to obtain funding from the Legislature to purchase City Hall, it will have that funding as early as July 1 of this year. As you might imagine, the College will be very anxious to move in as quickly as possible and will not want to wait around several years while the City decides what to do about a different City Hall.
The Town Center Plan envisions that a civic anchor is necessary in order to have a functional and vibrant town center. Most people who have been deeply involved with the planning effort believe that the civic anchor should be City Hall. The City’s Town Center landowner partners have stated that they strongly support the town center concept but that it only works if all parties carry out their part of the plan. In other words, they see it as a partnership that must include investment in a new city hall. A new City Hall is key to having the kind of town center that the community envisions.
A new City Hall achieves multiple goals. All of these goals have been endorsed by the City Council. First, there is no doubt that the existing City Hall is nearing the end of its useful life. There is no room for additional staff and meeting room and storage space is extremely limited. We could certainly use a larger council chambers. Second, as noted above, a new City Hall is a key component of implementing the Town Center Plan. Third, a new City Hall helps the College grow and consolidate its campus in the downtown core.
Some members of the community may argue that if the City is going to move out of the existing City Hall, it should look at potentially less expensive options like refurbishing existing buildings. This should be discussed and decided relatively soon. If the Council prefers this option, we would need to shift gears and start moving in that direction rather quickly.
The Council should decide if it wants to move forward with planning for a new City Hall regardless of what happens with funding for University acquisition of the existing City Hall.

Financing

Securing financing for a new City Hall will be of paramount importance and I am sure it will be one of the first questions the Council will want to have addressed. The first question will likely be why do we need a new City Hall? The second will likely be how do we pay for it? I tried to address the first question briefly above. We are presently looking into the question of financing and will present a recommendation to the Council soon if the Council authorizes us to keep moving forward on this project. The financing tools we are looking at include, but will not be limited to, those sources listed below. In the end, financing for City Hall will likely be some combination of sources, much like it was for the library.

Grants
Legislative Appropriations
General Obligation Bonds
Commercial or Government Loans
Lease with the Option to Buy
Rented office space

RECOMMENDATION

I would recommend that the Council take the following steps to move this project forward:

Confirm in an official manner, preferably by resolution, that the Council wants to build a new City Hall in or immediately adjacent to the Town Center.
Authorize the Manager to conduct a wetlands delineation and soils analysis on City owned property within the Town Center.
Authorize the Manager to conduct a public information initiative regarding the need for a new City Hall and the planning process underway to make it happen. The planning process could include public hearings or other ways to gather reaction from the public.
Authorize the Manager to work cooperatively with the City’s Town Center landowner partners to develop a proposed Town Center Plan that shows the location of buildings and infrastructure (including City Hall) for approval by the Council.
Authorize the Manager to make recommendations on a financing plan or strategy for Council approval and to begin the process of raising money.