Council wants more info about corporate center

HOWELL — Although the Township Council has yet to make a decision regarding the ultimate location of the municipal complex, the governing body recently voted unanimously to move forward with a plan to acquire more information about the Global Corporate Center as a future town hall.

At their Jan. 19 council meeting, members of the governing body agreed that additional facts are needed before Howell can formally initiate a purchase of the Global Corporate Center, which is an office building on Route 9 north near New Friendship Road.

The additional information will include an in-house appraisal and engineer’s report, corporate tax returns, current lease agreements and other information deemed pertinent by members of the council.

However, the possibility of the remediation and renovation of the current municipal complex on Preventorium Road has not been taken off the table.

“I need to know a whole lot more before we pull the trigger” on the Global Corporate Center, Councilman William Gotto said. “But that’s the basis of why I think we need to take the next step.”

One option that will not be taking the next step is a move of municipal offices to the shuttered Southard School on Kent Road, which the governing body voted unanimously to drop from a list of possible town hall homes at a meeting on Jan. 12.

The remaining options include the renovation and remediation of Howell’s existing municipal offices and a potential purchase of the Global Corporate Center for $8 million.

The Global Corporate Center, a 20-yearold, 90,000-square-foot building near the Route 9 headquarters of the Southard Fire Department, was the clear favorite among members of the governing body, with Mayor Robert Walsh endorsing its purchase.

The business complex, which currently leases space to various companies, has many perceived positive benefits for the township, including an improved centralization of the government, room for growth, few necessary upgrades needed, and a chance for the township to bring in revenue through the leasing of certain areas of the corporate center.

However, the township would have to pay an estimated $2 million in soft costs and renovations to make the move a reality, and the municipality would lose $288,000 in annual property tax revenue currently paid by Global Corporate Center.

“Unless we do nothing, we incur an expense that we don’t have sufficient funds to pay for without doing some bonding. The way I look at it and weigh the options, I think we have a much better opportunity to recover some of those bond costs and maybe even break even or do a little better if we look in the direction of the Global Corporate Center,” Deputy Mayor Angela Dalton said. “I see a real opportunity, if this is done right, for a good public/private relationship here.”

Howell Chief Financial Officer Jeffery Filiatreault presented projections based on a worst-case scenario bond of $6 million and current municipal bonding rates of 4 percent. According to his projections, a 30- year payout would cost Howell $370,000 per year; a 25-year payout would cost $390,000 per year; and a 20-year payout would cost $440,000 per year.

“Even with a 20-year payout, the rents would most likely cover this debt,” Filiatreault said.

Walsh said that while he endorses the township’s purchase of the Global Corporate Center, a decision cannot be reached until more information is made available and certain pre-emptive investigations into the property are made.

Councilwoman Pauline Smith agreed, and noted that public input will be crucial in making a final decision.

“We have to remember that we represent the people. If we are going to buy a building, if we are going to do anything, we must remember that we represent the people, that this is the people’s building and the people have to be satisfied,” she said.

Smith requested information about the municipality’s debt service and existing bonds in addition to an analysis of the Global Corporate Center.

The alternative to buying the building on Route 9 would be to remediate and renovate the existing municipal complex, a move that would cost the township upwards of $6 million, according to officials.

Based on a 2003 space utilization survey by Jack Pervis, it was estimated that a total of 16,000 square feet would need to be added to the administration, parks and recreation, engineering, planning and code, and tax and revenue buildings, costing the township about $4 million. Remediation costs relating to lead paint, mold and asbestos were estimated at $1.6 million, while the installation of elevators would cost another $500,000.

However, the estimates do not include the additional costs of renovation, such as the relocation of offices during construction and potential renovations to the fire commission building.

But some council members believe the existing buildings are a lost cause in terms of acting as a future home for municipal offices.

“We already know what the picture is. You can dress it up all you want. You can compare it [to the Global Corporate Center] in any fashion you want, but at the end of the day, it still is what it is,” Gotto said. “It’s a tremendous cost for new additions. It’s a tremendous cost for rehabilitating this [existing town hall] building.”

Joe DiBella, a former mayor of Howell who was in attendance at the meeting, agreed.

“Sinking more money into this building would be a colossal mistake, in my opinion. I’m concerned about the prospects of rehabilitation. We have all seen how challenging it is to do that, particularly with a building like this,” DiBella said. “You have no idea what you will discover and it turns into a huge nightmare. When you add up the numbers in the end, I don’t think rehabilitation is the right choice.”

DiBella noted that the current town hall is “part of Howell’s fabric” and said the building would be put to better use as meeting space for various organizations.

Some residents, however, are still worried about the financial impact of forgoing rehabilitation of the existing municipal buildings and purchasing the Global Corporate Center.

“During these economic times, I don’t think it is a good idea for us to be making large purchases like this. The $8 million purchase doesn’t include the cost of renovating [the Global Corporate Center]. There are probably problems we are not aware that need to be addressed,” said resident Elaine Taylor. “With the state of the economy, we need to think about saving our money and tightening our belts and finding ways to give back to the people of Howell.”

Officials were unsure when the information the governing body requested will available, but further discussion will take place when council members have reviewed all of the pertinent facts.