City council backs purchase of building to serve as new Tumwater City Hall

The Tumwater City Council unanimously voted to authorize Mayor Leatta Dahlhoff to complete the purchase of a property priced at $14,080,000 to serve as the new city hall. 

The purchase is for a 95,000-square-foot building at 310 Israel Road, which is owned by Vine Street Investors.  

The city intends to finance the purchase and the renovation of the building through a bond, which the council has voted to support. 

City Administrator Paul Simmons said the building would ease overcrowding at the current city hall on 555 Israel Road. He made his remarks at a council meeting on Tuesday, Oct. 20.

According to Simmons, the current city hall opened in 1987, when the city had 63 employees serving about 8,500 residents. The city has grown to a point where it now has 255 full-time employees — 113 of whom work in the city hall — serving a population of more than 30,000 residents. 

Simmons went on to describe issues plaguing staff. He said there is not enough space to accommodate more personnel despite the city continuously expanding its services. Some staffers are working in the basement with limited lighting. 

There is also a lack of wellness facilities, such as lactation rooms, space for confidential talks and public meeting areas. Simmons said the primary conference room shares the same room as the lunchroom, which is divided by a foldable wall.  

He also pointed out safety issues with the front counter, cubicles not being American with Disabilities Act compliant and parking space limitations. 

Simmons added several departments have been forced to relocate outside city hall, including the parks maintenance team, Parks & Recreation Department, and Water Resources & Sustainability Department. 

Before the city administration and council arrived at the decision to buy the property, Simmons said staff explored other options, including expanding the current city hall, building a new city hall, or building a new police station to create extra space at city hall.  

All options were found to be considerably more expensive than just reusing an existing building. 

Once city staff move to the new city hall, Simmons said the plan is to convert the current city hall into a public health and safety complex. 

Financing

Once acquired, the building will be renovated to suit needs. Options presented to the council on Oct. 20 indicated that renovation costs could total between $12 million and $17 million.

Those future expenses cover the construction of a lobby and council chambers, long-term needs, upgrades to the building's HVAC system, backup power and security. 

To get the project started, the city aims to secure a $19 million bond for the purchase and initial renovation of the building. The city plans to repay the debt over 30 years at a 6 percent interest rate, resulting in an annual payment of $1,378,834. 

Simmons said the bonds will be sold on Nov. 3, and funds will become available on Nov. 18. Staff expects to close the purchase by Dec. 10.  

Impacts

Council member Joan Cathey asked how purchasing the building would impact plans for a community center and Public Works Operations Center at the planned Trails End Park. 

Simmons said the community center would be funded primarily through Metropolitan Park District funds, which is continuously accumulating money as staff finds a location. 

Simmons said the center would be paid largely through utility rates and the general fund.

He added acquiring the new city hall building would allow staff to downscale plans for the Public Works Operations Center by reducing floors from two to one, which would save about $8 million on that project.