Interesting angle on urban development that we haven't discussed very much here - booting govts off of prime real estate when it's not essential to them.
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http://cbs2chicago.com/local/water.r...2.1372342.html
Dec 15, 2009 10:23 pm US/Central
Government Agency Sits Downtown, Pays No Taxes
Building That Houses Metropolitan Water Reclamation District Headquarters On North Michigan Avenue Could Bring In More Than $5 Million A Year
Reporting Jay Levine
CHICAGO (CBS) Why does a government agency, whose primary task is performed far from the bright lights of the Magnificent Mile, need its headquarters right on it? As CBS 2 Chief Correspondent Jay Levine reports, its headquarters which cost over a million dollars a year to maintain, and take countless millions more off the tax rolls.
It's the Metropolitan Water Reclamation District, which operates one of the largest waste water treatment plants in the world in southwest suburban Stickney, with a billion dollar plus budget and 2,000 employees.
Six hundred of them in the squat, grey-stone five-story headquarters surrounded by sleek Gold Coast high-rises of North Michigan Avenue and in the seven floors it owns in a newer building across the street. Neither on the county tax rolls.
A government agency paying no taxes, sitting on a posh site like this?
"It's a head-scratcher they've maintained this location for this kind of use," said corporate real estate expert Allen Rogoway. "It's a county use, and the highest and best use for a location just off Michigan Avenue would seem to be commercial or residential."
Like the Ritz Carlton Apartment tower going up right next door, which the county assessor says will have a market value of $242 million; estimated annual tax revenues: over $5 million. The District headquarters brings in nothing.
"You're right, it's valuable real estate," said Water Reclamation District Commissioner Debra Shore. "It might make sense to put it back on the tax rolls."
Debra Shore has been a commissioner for just three years. The building has been here for more than 50, since 1955.
Protected by a private police force, with generous indoor parking and even a city-designated loading zone. Your tax dollars pay for that, too. CBS 2 didn't see much loading going on in the government cars parked there.
Sources say when the
developers next door tried to buy the building back when real estate values were soaring, they were turned down flat.
Allen Rogoway is not only a commercial real estate expert, he's also a taxpayer.
"As a citizen of the city, I would ask the same questions and wonder why they weren't in another location," Rogoway said.
One commissioner has proposed moving everyone out to Stickney, where the District has plenty of space. Commissioner Shore wants to be near other government agencies.
"I think it makes sense for us to be in the central core somewhere, but it doesn't have to be a block off of Michigan Avenue," Shore said.
The problem is now is clearly NOT the time to sell real estate. But passing up a chance when they could've gotten top dollar not only cost them, it cost us; by keeping one of the most valuable pieces of property in Chicago off the tax rolls.
CBS 2 Political Producer Ed Marshall contributed to this report.