Mayor Emanuel Announces Major Consolidation and Reorganization of City Office Space Will Lead to More Than $4 Million in Annual Operation Savings

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Mayor Rahm Emanuel and the Department of Fleet and Facilities Management (2FM) today announced a major consolidation and reorganization of city department office space that will be complete by the end of 2013 and lead to more than $4 million in annual savings.

“By taking a look at the locations of City departments more holistically, we were able to strategically improve the way our departments function and interact on a day-to-day basis,” said Mayor Emanuel. “This will lead to providing better services, increased efficiency and, most importantly, millions in annual taxpayer savings.”

Currently, the City leases 124,875 square feet in 33 N. LaSalle for $4.4 million a year to provide space for the departments of Law, Finance, Housing and Economic Development, and CCTV.  The termination date of this lease is December 31, 2013.  By vacating this space the City will save more than $4 million in avoided annual least costs; these will be permanent savings. 

The City also leases 245,955 square feet at 30 N. LaSalle to provide space for 2FM, CDOT, Law, Aviation, Housing and Economic Development, and the Police Review Board as well as 175,057 square feet in the DePaul Center, located at 333 S. State Street, to provide space for Water Management, Finance, Public Health, and Innovation & Technology.  The lease termination dates for these spaces are 2020 and 2023, respectively.

In planning this consolidation and shifting of employees, the City focused on maximizing City-owned space and maximizing City-leased space that still has significant time left on the leases. 2FM Commissioner David Reynolds grouped similar functions together in City Hall and planned the improvements so some of the oldest spaces in City Hall will receive renovations.

2FM estimates that the costs of the consolidation and renovation totaling approximately $12 million will be recouped in three years and the City will then begin saving more than $4 million a year.  The improvements to City Hall are being designed for certification under the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) green building rating system.

The planned improvements will support the following departmental moves:

• The Department of Cultural Affairs and Special Events (DCASE) will move from the eighth floor of City Hall to the Cultural Center, consolidating DCASE in one location.
• The Department of Water Management’s Sewer Permitting function will move from the eighth floor of City Hall to the ninth floor, joining it with the City’s other permitting functions already housed on that floor.
• The Department of Finance will be consolidated from several locations and numerous floors to the seventh floor of City Hall, helping to increase operational efficiency.  And a portion of the Department of Finance will move from 33 N. LaSalle to leased space in the DePaul Center joining it with the other City departments currently housed at that location.
• The Department of Human Resources will move from the eleventh floor of City Hall to the eighth floor, placing it in space better sized for its number of employees; the Department of Procurement Services will move from the fourth floor of City Hall to the eleventh floor, placing it in space better sized for their position count; and the Department of Streets and Sanitation will move from the seventh floor of City Hall to the eleventh floor, placing in space better sized for the number of employees working in City Hall.
• The Landmarks division of the Department of Housing and Economic Development will move from 33 N. LaSalle to the eleventh floor of City Hall, which is a better fit for its function and size.   This move also locates Landmarks closer to the permitting functions in City Hall, providing increased convenience to the public.
• Additional moves include a portion of Law relocating from 33 N. LaSalle to the fourth floor of City Hall and a portion of the City Clerk relocating from the Lower Level of City Hall to the first floor of City Hall, helping to consolidate the City Clerk’s operations on the first floor.

“Vacating 33 N. LaSalle provided a prime opportunity for the City to look strategically at its use of leased and owned space in the Loop,” stated Commissioner Reynolds.  “When the work is complete not only will we save the money currently being spent to lease 33 N. LaSalle, we’ll also have made some long needed improvements to City Hall and used the space more effectively.”

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