Grant set for reuse of federal building

By Peter Goonan

05/18/2009- The Republican

SPRINGFIELD - A $3 million state grant was announced Friday for renovation and reuse of the former Federal Courthouse building on Main Street, to include the School Department and Baystate Health as tenants.

Local, state and federal officials gathered at 1550 Main St. to announce the grant and praise plans for the building.

"The redevelopment and reuse of the federal building represents the rebirth of a workplace that will now be a tremendous asset to the central business district," said U.S. Rep. Richard E. Neal, D-Springfield, who was involved in negotiations over reuse of the building.

The Massachusetts Development Finance Agency is negotiating to purchase the building from the U.S. General Services Administration and will then lease space to the city and other tenants, said Richard Henderson, executive vice president of real estate for the state agency, also known as MassDevelopment.

Purchase and redevelopment will cost approximately $12 million, Henderson said.

The project will bring hundreds of jobs to the downtown core, revitalizing that area and enhancing business, Mayor Domenic J. Sarno said. The federal courthouse moved to a new building on State Street last summer, but some federal tenants will remain in the Main Street site.

The School Department is relocating its administration offices from its current site at 195 State St., to the Main Street building. The city-owned State Street building is more than a century old and has problems ranging from a lack of air conditioning and poor air circulation to inadequate parking, officials said.

The state is contributing $3 million toward renovations from its Growth Districts Initiative grant program, announced Friday by the office of Gov. Deval L. Patrick. The funds will be used for renovations inside and outside the building, including the ground floor atrium and lobby and the outdoor plaza, officials said.

The plaza, which was surrounded by concrete barriers to protect the courthouse, will now be opened up and beautified, officials said.

The city is contributing $2.8 million toward interior renovations and technology. The School Department will initially lease 49,450 square feet on two floors for its administrative offices at $10.86 per square foot, or approximately $537,000 per year.

Baystate Health plans to lease the fifth floor for uses that will not include patient care, a spokesman said. The hospital's commitment as a tenant follows its mission focused on "improving the health of the people in our communities - and this includes the economic health of our communities," said Mark R. Tolosky, president and chief executive officer of Baystate Health.

State Sen. Stephen J. Buoniconti, D-West Springfield, and state Reps. Benjamin Swan and Cheryl A. Coakley-Rivera, D-Springfield, joined in praising the plans.

Some city councilors, including Timothy J. Rooke and Bud L. Williams, have criticized the mayor and control board for not seeking proposals from other downtown property owners for the new School Department location. Rooke also criticized the city's $2.8 million up-front cost.

Sarno said he believes the federal building is the best possible arrangement and is in the best interest of the downtown district.

The city will seek proposals to dispose of the School Department's current site on State Street, Sarno said.

The city's capital investment will come from savings realized this year by not selling bonds for capital projects in the fall, and by some capital projects costing less than expected, said Control Board Executive Director Stephen P. Lisauskas.