The Ypsilanti Downtown Development Authority has received two proposals from the city for office space at City Hall and Director Tim Colbeck said the DDA is considering the move.
"There have been discussions about this two years now, but it just sorted heated up," Colbeck told AnnArbor.com. "It's primarily coming from the city side saying, 'we’ve got this space' and for a whole lot of reasons, it makes a lot of sense for us to be there."
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Ypsilanti City Hall at 1 S. Huron
Tom Perkins | AnnArbor.com
The DDA is based out of a 550-square-foot office at 32 N. Washington St. The DDA pays $650 per month in rent, and $7,800 on an annual month-to-month lease.
Including fax service and phone, regular internet service and rent, the DDA pays $9,271.99 at the Washington Street office. The office also has a private office for Colbeck, a corner office with windows, access to public parking and other features.
The property is owned by Dansen, LLC, who purchased it in 2006 from William Kinley for $1.5 million. The building's 2013 assessed value is $115,800.
A cost analysis completed by Colbeck shows the DDA may save money by moving to City Hall at 1 South Huron.
The first option the city proposed is for 303 square feet of office space on the third floor. The treasurer's office, which recently located to the first floor, was on the third floor and the city's part-time assessor has office space there.
The rent would be $300 per month or $3,600 annually. Including Internet service and other costs, the DDA would pay $5,671.99 annually. According to Colbeck, this amounts to a projected savings of $3,600 annually.
The third floor option would give the DDA two offices, one with windows and another private one for Colbeck, as well as a small meeting space in the area.
The second option for 336 square feet would cost the DDA $350 per month or $4,200 annually on the fourth floor, which is mostly vacant. Colbeck said Mayor Paul Schreiber uses space on the floor from time to time.
"He said if it was going to generate income for the city, he would be willing to use another office," Colbeck said.
The DDA would pay $6,271.99 annually, allowing the DDA to realize $3,000 in savings.
The DDA would have access to three offices, as well as a small meeting space.
In addition to the proposed savings, Colbeck wrote in a memo to the DDA's Operations and Finance committee, that the move could free up two parking spaces at the Riverside Art Center, which could generate an additional $600 in revenue annually.
"If the board were to choose to relocate our offices, I would recommend that this be an appropriate time to upgrade some computer hardware and office furnishings," Colbeck wrote. "This would incur some one-time charges, which I recommend be covered by the projected overall savings. At a minimum staff will need one new laptop, two new phones, two desks, chairs and filing cabinets. Staff will research competitive costs to ensure the best possible deals."
Colbeck said there are advantages in moving.
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32 N. Washington Street
Courtesy City of Ypsilanti
"There's always an advantage as far as keeping us better connected and I do have to go to City Hall for a number of things," he said. "There's things there that make sense. Running the numbers, long term, it probably is going to make real fiscal sense."
Based on the two proposed options, if the board were to decide to move forward with the move, Colbeck recommends that the DDA move forward with the first option.
"After viewing all of the proposed office spaces I believe that option will best serve the current staffing needs base on the size and proximity of the offices for the executive director and staff," Colbeck wrote. "While option two provides more aggregate space, it is divided into three separate smaller offices. One of these would just sit empty."
However, Colbeck said the DDA could make some counter proposals.
If the DDA were to decide to move forward, Colbeck wrote that he recommends requesting clarification on whether there are additional costs associated with the use of various meeting space. Colbeck wrote he would also request for the offices to be cleaned and painted prior to the move-in at the city's expense.
"I would also recommend that rather than having to provide our own phone lines and Internet, that we be added to the city’s system," Colbeck said. "Even if we have to pay a prorated share for phone and Internet, it would likely reduce our current estimate event further."
Colbeck wrote that the DDA should also consider buying into the city's IT Services Contract for Internet services.
Before moving forward with this, Colbeck said he will wait for the direction of the committee and the DDA board because it would have to approve the move.
Colbeck said he isn't sure when the move would take place, but he's assuming "sooner rather than later." Colbeck noted that for the city, the move would generate another revenue source.
"There's a logic that could be said for either side of the coin for being in City Hall or not being in City Hall," Colbeck said. "But there are no red flags."
Katrease Stafford covers Ypsilanti for AnnArbor.com.Reach her at katreasestafford@annarbor.com or 734-623-2548 and follow her on twitter.