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Update on New Subport Building
It has been 25 years or more since Juneau has seen a new state office building erected in the capital city. Approximately 500 state employees are housed in space that needs immediate infrastructure investment – and in the case of the Department of Labor space –the current lease expires in 2012 and the state will need to vacate the building. This creates an opportunity to partner with The Alaska Mental Health Trust, the owner of some of the most desirable commercial space downtown – the old subport area.
One year ago, Trust officials and the Department of Administration began discussing the possibility of partnering on a project that would provide state office space while at the same time supporting the beneficiaries of the Alaska Mental Health Trust. A local architect was hired to draw up plans for a facility that could house the Departments of Labor, Fish and Game, Corrections and Public Safety.
The design envisions a well built, energy efficient facility consistent with the values of the Waterfront Plan. Covered pedestrian facilities on the Egan Drive side, and plaza like opportunities in front of the building on the water side will increase the community features of the site. The area which is now rarely used by pedestrians will be converted into a multi-use, urban hub. New green space and integration with the waterfront will not only attract use by the employees at the Trust building, but our residents and visitors alike will be able to enjoy this new waterfront space.
HB 161 and SB 157 are the vehicles to see this project happen. The legislation will enable the Trust to access $22.7 million in Trust Funds currently invested by the Permanent Fund, and allow the State to issue Certificates of Participation for an equal amount. Receipts from the state leases will be used to pay off the certificates on a 20 year cycle. It is important to note that the State will save approximately $13 million over the life of the lease in the proposed Trust facility, as compared to investing in the current infrastructure upgrades and required new leasing.
HB 161 will be heard in the House Finance committee on March 23 at 1:30 p.m. This is an important project for Juneau and for the Southeast region. This is a bi-partisan effort unanimously supported by all southeast legislators, and many of our friends "up north."
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SPONSOR STATEMENT - HB 161
"An Act relating to the Alaska Mental Health Trust Authority Subport Office Building; authorizing the issuance of certificates of participation for construction of the building and authorizing the use of up to $25,000,000 from the mental health trust fund for construction of the building; approving leases of all or part of the building by the Department of Administration; and providing for an effective date."
HB 161 will enable the Alaska Mental Health Trust to move forward with construction and ownership of a new office facility on land the Trust owns in downtown Juneau.
The core mission of the Mental Health Trust is to develop and manage Trust assets for the benefit of mental health beneficiaries in the areas of health, safety, quality of life and economic security. Trust beneficiaries live in communities across Alaska. They are friends, neighbors, and family members facing mental illness, developmental disabilities, chronic alcoholism, Alzheimer’s disease, and dementia.
The Trust has identified land in Juneau as a top priority for development. HB 161 enables the Trust to develop, through the issuance of certificates of participation, much needed office and retail space. Four State agencies are currently housed in aging facilities, all in need of major renovation. The proposed building, using modern construction standards, and new energy saving technologies, will reduce both operating and maintenance costs. From a centralized location the offices will function with improved efficiencies and better public access.
Most importantly, over time, a new facility will save the State of Alaska money, and will provide a steady revenue stream to Trust beneficiaries. Development of Trust assets will provide a return on investment for beneficiaries, in turn enriching the lives of those served.
House Resolution 6 passed unanimously on February 25, 2009 by the Alaska House of Representatives. It encourages the Trust to pursue this type of project on behalf of its beneficiaries. It states in part:
"BE IT RESOLVED that the House of Representatives encourages the Alaska Mental Health Trust Authority to develop its land and resources to the fullest extent possible, consistent with its legal and moral responsibility to advance mental health services and employment opportunities that protect and enhance the lives of those who benefit from the mental health trust."
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Press Release on February 27, 2009:
Muñoz's HB 161 Authorizes New State Office Building
Representative Cathy Muñoz, R-Juneau, today filed House Bill (HB) 161, legislation that would allow the Alaska Mental Health Trust Authority, or AMHTA, to move forward on the new State Office Building project in the Sub-port area of downtown Juneau.
HB 161 will give the Trust permission to move forward and provide a multi-use waterfront project that will benefit the city, the Trust, and state workers. ~ Rep. Cathy Munoz
"This is a win-win deal for the Trust and the State," AMHTA Chief Executive Officer Jeff Jessee said. "The State gets much-needed office space, and the lease payments will be reinvested into Trust beneficiary services."
"HB 161 will give the Trust permission to move forward and provide a multi-use waterfront project that will benefit the city, the Trust, and state workers," Muñoz said. "It has been at least 25 years since a new State facility has been constructed in Juneau."
Plans for the new state office building include office space for four state departments located on the upper floors, and private sector retail and offices on the ground floor. The state departments are Fish & Game, Corrections, Labor, and Public Safety. The site plan includes a wide pedestrian walkway adjacent to Egan Drive that fits within the City & Borough of Juneau's Long-Range Waterfront Plan that calls for a waterfront Seawalk concept.
"In the long-run this project will cost the State less money and will be a model for energy-efficiency," Muñoz added.
Half of the funding for the project, estimated at $50 million, would come from AMHTA revenues. The other half would come from bonds that would be repaid from revenues earned on tenant leases.
HB 161 has been referred to the House Community & Regional Affairs and Finance committees.
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