Chicago Mayor Rahm Emanuel and the Department of Fleet and Facilities Management (2FM) have announced a major consolidation and reorganization of city department office space that will be complete by the end of 2013.
Currently, the city leases 124,875 square feet at 33 N. LaSalle for $4.4 million a year to provide space for the departments of Law, Finance, Housing and Economic Development and CCTV. The termination date of the lease is Dec. 31, 2013. By vacating the space the city will save more than $4 million in avoided annual least costs; these will be permanent savings.
“By taking a look at the locations of city departments more holistically, we were able to strategically improve the way our departments function and interact on a day-to-day basis,” Emanuel said. “This will lead to providing better services, increased efficiency and, most importantly, millions in annual taxpayer savings.”
The city also leases 245,955 square feet at 30 N. LaSalle to provide space for 2FM, CDOT, Law, Aviation, Housing and Economic Development and the Police Review Board as well as 175,057 square feet in the DePaul Center, located at 333 S. State St., to provide space for Water Management, Finance, Public Health and Innovation & Technology. The lease termination dates for these spaces are 2020 and 2023, respectively.
In planning this consolidation and shifting of employees, the city focused on maximizing city-owned space and maximizing city-leased space that still has significant time left on the leases. 2FM Commissioner David Reynolds grouped similar functions together in City Hall and planned the improvements so some of the oldest spaces in City Hall will receive renovations.
2FM estimates that the costs of the consolidation and renovation totaling approximately $12 million will be recouped in three years and the city will then begin saving more than $4 million a year.
“Vacating 33 N. LaSalle provided a prime opportunity for the city to look strategically at its use of leased and owned space in the Loop,” Reynolds said. “When the work is complete, not only will we save the money currently being spent to lease 33 N. LaSalle, we’ll also have made some long needed improvements to City Hall and used the space more effectively.”
