User Login    
 + Register
PDQ Cleaning
News : Federal Government To Move 900 Employees To Downtown KC
Posted by Randy on 2013/12/10 6:39:09 (478 reads) News by the same author

The federal government has picked Two Pershing Square, an office building near Union Station, to be the new home of 900 employees currently at the Bannister Federal Complex.

Click to see original Image in a new window

The decision to lease about 140,000 square feet in the 11-story building at 2300 Main St. was made after a year-long review of properties throughout downtown by the federal General Services Administration. The 20-year lease is valued at $49.8 million.

The move of the GSA employees — expected to begin one year from now — is being viewed as a major boost to downtown, and another important step toward the ultimate demolition and redevelopment in 2016 of the Bannister Federal Complex, a former World War II defense plant in south Kansas City.

“I’m enthusiastic about the move, and I think it will further connect the GSA with the downtown area,” Jason Klumb, regional administrator for the agency, said Monday.

The location of Two Pershing Square near the new downtown streetcar line scheduled to open in 2015 was an added benefit. It’s also close to bus routes and a rental bicycle station.

The building has parking for 1,700 vehicles, but the GSA will use only 28 for official vehicles. The federal government does not pay for employee parking but does reimburse workers using public transit.

“The streetcar is a bonus,” Klumb said.

That theme was picked up by Mayor Sly James.

“I’m pleased GSA will be located next to Union Station and within steps of a streetcar stop,” he said. “The momentum of our downtown is palpable, and I can see why businesses and governmental entities want to be a part of that.”

Two Pershing Square has 513,000 square feet of office space and is about 30 percent vacant. It is managed by Gateway Harrison, an entity formed by the building’s owner, the Los Angeles County Employees Retirement Association.

The glass office building just east of Union Station has had a difficult history.

It was built in 1987 by the Trizec Corp. and was intended to be part of a much larger redevelopment plan that was to have included the renovation of Union Station. In fact, the Two Pershing Square building obstructs the tracks that once served Union Station.

After that development plan failed to materialize, Union Station ultimately was renovated and reopened in 1999 in a project financed by a bistate sales tax approved by voters in 1996. Trizec sold the building to the California-based pension fund in 2000.

Two Pershing Square also lost a big tenant in 2004 when what was then the Blackwell Sanders law firm moved 450 employees to a new headquarters on the Country Club Plaza.

Kory Hochler, the GSA official who handled the lease negotiations, said the agency would be paying $14.75 per square foot over the 20-year lease. The GSA does have the right after seven years to reduce the amount of space it occupies or completely leave the building without penalty, he said.

The landlord also sweetened the deal by offering the GSA $8.6 million in free rent spread over 42 months during the 20-year life of the lease. The building owner also plans to spend $8.4 million preparing the office space for the GSA.

The agency is expected to take occupancy in December 2014, and the move is expected to take three to five months.

The broker representing the building owner was Sharon Gartin of Kessinger/Hunter & Co.

Bill Dietrich, president and CEO of the Downtown Council, said his organization of downtown businesses and property owners intended to help make the transition from Bannister to downtown as smooth as possible for GSA employees.

The GSA functions primarily as the landlord for federal agencies. The 900 employees in the GSA Heartland Region are mostly white-collar workers and include a variety of specialties including architects, engineers and contracting officers.

The Heartland Region covers Missouri, Kansas, Iowa and Nebraska, and its functions include building management and supply purchases.

The regional office also performs some national functions including handling accidents involving federal vehicles throughout the country.

In its request for space issued a year ago, the GSA defined the downtown area as being bordered on the north by Interstate 70; on the south by 27th Street; on the east by Campbell Street; and on the west by Interstate 35. Multiple property owners responded, and Klumb said the Two Pershing Square deal was the lowest cost “technically acceptable.”

The GSA will be the second large federal tenant to move near Union Station in recent years. In 2006, the Internal Revenue Service opened a 1.1 million-square-foot processing center nearby on West Pershing Road. It has 3,000 full-time employees and up to 5,000 additional seasonal employees.

The decision by the GSA to lease an existing building, however, was not the city’s and the local congressional delegation’s first choice.

Beginning in 2006, a big push was made to encourage the government to build a new building in the East Village for federal workers, including those at Bannister.

That proposal, which called for a private developer to build a $264 million project and lease it to the federal government, fell through in 2009, a casualty of the budget wars in Washington.

Printer Friendly Page Send this Story to a Friend Create a PDF from the article


Other articles
2015/7/31 6:50:00 - Chillicothe To Receive New 79 Room Hotel
2015/7/31 6:40:00 - Rabbit, Poultry And Dairy Show Results From NCM Fair
2015/7/31 4:53:31 - Wheat Yields Good In MU Variety Tests
2015/7/31 4:48:25 - Carthage Couple To Stand Trial In Abuse Of 1-Month-Old Baby
2015/7/31 4:39:49 - Feds: Man's Own Security System Caught Him Dealing Drugs
2015/7/31 4:35:24 - Woman Rushes To Ailing Mom's Side, Leaves 4 Young Children Home Alone
2015/7/31 4:26:49 - Harrison County Man Arrested For Abuse After Child Found On Highway
2015/7/31 4:21:54 - "Exorcism" At Public Park Caught On Camera
2015/7/31 4:18:14 - Woman Accused Of Getting 13-Year-Old Drunk, Raping Him
2015/7/31 4:09:51 - Country Showdown Begins At 7:30 Tonight At NCM Fair
2015/7/31 4:03:01 - Livingston County Sheriff Hires New Deputy
2015/7/31 3:59:24 - Chillicothe Police Department Blotter
2015/7/31 3:57:05 - Chillicothe Police Department To Hold Softball Event
2015/7/30 14:21:48 - Endangered Person Advisory Issued For Missing Princeton Girl
2015/7/30 7:54:33 - Circuit Court In Trenton Sees A Variety Of Cases
2015/7/30 6:46:10 - Northwest Missouri Man Injured In Tuesday Night Accident
2015/7/30 6:40:44 - Two Trenton Residents Injured In Schuyler County Accident
2015/7/30 6:30:00 - Trenton Man Charged With Domestic Assault
2015/7/30 6:26:05 - Iowa Man Injured In Accident South Of Eagleville
2015/7/30 5:58:21 - Swine And Goat Show Results From North Central Missouri Fair
2015/7/30 4:29:28 - Facebook Scam Preyed On Grieving "Angel Mom"
2015/7/30 4:22:43 - Police: Inmate Assaults Missouri Corrections Officers In Escape Attempt
2015/7/30 4:17:44 - Effort Starts To Fight Kansas City's New Minimum Wage Law
2015/7/30 4:12:22 - J. C. Penney Employee: Boss Confronted Her Over Shorts She Bought At Same Store
2015/7/30 4:10:00 - Mother Charged After Toddler Found Unresponsive In Home Filled With Dead And Dying Animals
2015/7/30 3:56:29 - 4 Charged By Police With Burglary At Gallatin
2015/7/29 8:43:48 - Team Farmer Event At North Central Missouri Fair Canceled
2015/7/29 8:39:02 - Gallatin City Council Meets
2015/7/29 8:36:01 - Gallatin Man Arrested On Multiple Counts Of Child Porn
2015/7/29 6:39:38 - Habitat For Humanity To Hold Meeting At Chillicothe



Bookmark this article at these sites

                   

Listen to KTTN-FM