Post by Logan on Mar 19, 2016 22:05:54 GMT -6
JUNEAU — The Alaska Legislature would save $7.5 million by moving to the state-owned Atwood Building in Anchorage instead of buying its existing, remodeled office space in the city, according to a new independent report commissioned by lawmakers.
The financial analysis, by a San Francisco-based employee of consulting firm Navigant, says issuing bonds to buy the existing offices on Fourth Avenue at the landlords’ $37 million asking price would produce a $31.7 million total cost over a 20-year period.
Moving to the Atwood Building, on Seventh Avenue, would cost $24.2 million.
Much of that savings, however, stems from the fact that the Legislature says it would need 20 percent less space in the Atwood Building. The cost per square foot at the Atwood Building is only about 4 percent cheaper, at $2.95 compared to $3.08 if the existing building is purchased.
Read more: www.adn.com/article/20160318/report-state-saves-75m-if-lawmakers-leave-new-anchorage-offices
The financial analysis, by a San Francisco-based employee of consulting firm Navigant, says issuing bonds to buy the existing offices on Fourth Avenue at the landlords’ $37 million asking price would produce a $31.7 million total cost over a 20-year period.
Moving to the Atwood Building, on Seventh Avenue, would cost $24.2 million.
Much of that savings, however, stems from the fact that the Legislature says it would need 20 percent less space in the Atwood Building. The cost per square foot at the Atwood Building is only about 4 percent cheaper, at $2.95 compared to $3.08 if the existing building is purchased.
Read more: www.adn.com/article/20160318/report-state-saves-75m-if-lawmakers-leave-new-anchorage-offices