Op-Ed: Why a New City Office Building Downtown Makes Sense

In May, the Novato City Council to move the city administrative offices from a leased space on Rowland Way back to the Old Town civic center site. The council approved construction of a new office building in the city-owned parking lot on Machin Avenue across from the . The decision to build downtown at the civic center site was the culmination of more than two years of research, analysis and consideration by city staff and the council.

The council’s decision to build downtown has within the community. Some of the objections being expressed include that the city: has chosen the wrong location that removes parking and will negatively impact downtown; is making a poor financial decision to build new versus purchasing an existing more economical building/site; and rushed the decision through without public input. 

While I understand the concerns, there are valid and thoughtful reasons the City Council chose to proceed. There will always be differing opinions on important policy decisions made by the city; however, as city manager, I believe it is important to provide some of the council’s rationale and considerations.

Location

Over the past two years, council or potential building sites around Novato for its city offices. For each site, council considered cost, location, building functionality, building quality, building age, public convenience and operational considerations. To assist with an impartial cost analysis of some options, the city hired a large respected construction firm to perform a detailed practical evaluation of key sites and buildings. 

The firm’s analysis found that the available existing buildings that fit the city’s profile were not good long-term investments. Most existing buildings were wood framed and 25 years or older. Buying them would cost about the same as building new in the civic center when purchase, relocation of tenants and rehabilitation costs were considered. This information shifted council’s decision-making to focus on the purchase of a new steel-frame building or the construction of a new building.

Financial

The city’s lease payments are about $650,000 per year at 75 Rowland Way. Eliminating the lease and securing a permanent office space is critical for the city’s operations because the lease ties up funds that could be used for other critical purposes such as police or maintenance. The lease expires in September 2013 at which time the city will either need to negotiate a new lease or move into another location. 

The council’s goal was to find permanent space that would serve the city for the next 50-plus years.  We are fortunate to have that we can use for this project. One important note is that this money is not related to the five-year, quarter-cent sales tax increase approved by voters.  Furthermore, this funding cannot be used for any type of staffing, programs or maintenance; it must be used for a capital project like a building. 

Public Communication Process

The city took many steps to inform the public about the city offices project as it was being debated. The council had five public meetings on the project prior to taking action in May. The council also had three closed-session meetings between Sept. 28, 2010 and Nov. 9, 2010 to discuss specific parcels.

The city wrote articles in both the December 2010 and March 2011 edition of the Our Town electronic newsletter highlighting the status of discussions. The agendas for the five council meetings were also posted on the city’s Facebook page.  Finally, the city developed an extensive page on the city’s website that provided links to background information and other reports and studies.

The council views the offices at the civic center as a financial investment for future generations. Are cheaper options available? Yes. The council could purchase an existing building at a less desirable location that is already halfway through its useful life. However, the council members said that such an action is not in the best long-term interests of the community. The availability of one-time funds provides an opportunity to build a facility that will last for decades.

In conclusion, the Novato City Council has chosen to build city offices downtown because they believe it is a good location, is financially feasible and is the best investment to serve Novato residents in the long term.