Saturday, October 1, 2011

Governor Barbour recommends Landmark Center for new Revenue home

Governor Haley Barbour agreed with a study recommending the Landmark Center on Capitol Street as the site to replace the current Department of Revenue building on Springridge Road in Clinton. The Department of Finance and Administration hired the firm of Cushman & Wakefield to conduct the study. The study cited a need for 209,000 square feet as the leading criteria in selecting a site. The study claimed leasing the building would save $16.7 million instead of building on a new site. The study also stated renovations would only take two years to complete instead of four years for the construction of a new building. Governor Barbour also cited the 27% vacancy rate for Jackson, calling it "too large to ignore".

The Department of Revenue currently resides in a large metal building in Clinton. Although the building was intended to be a temporary site for the agency, what was to be a short-term stay has lasted over ten years. The building is plagued by leaks and other structural problems. The search for a new home generated some controversy earlier this year when the state proposed building the new home for the agency on the corner of Lakeland Drive and Ridgewood Road, arousing furious opposition from neighbors in Northeast Jackson. The estimated cost for the new building was $50 million and projected interest was $22 million. Lieutenant Governor Phil Bryant postponed a decision until October and a new study was commissioned.

Downtown Jackson Partners President Ben Allen sent the following statement to this website after the recommendation was announced today:

"Words can’t express how important and appreciative the citizens of Jackson and the state of Mississippi should be for the leadership of Governor Barbour and DFA Director Kevin Upchurch, regarding this entire episode, and it truly has been an EPISODE. Citizen input from businessmen, neighborhoods and individuals, walked hand in hand, with leadership from legislators (particularly Representative Cecil Brown) , to turn around what I feel would have been a colossal mistake (building a brand new expensive, unneeded edifice on Lakeland Drive), and made lemonade out of what could have been an expensive lemon. Let’s hope the legislature in total concurs."

The study considered the following state-owned sites (page 7 in study):
1. Lakeland Drive and Ridgewood Road (Land was considered "constricted" for future growth and the plan would have required clear cutting.
2. Mississippi State Fairgrounds. Study said it would not be compatible with the current buildings on the Fairgrounds. (Ya think?)
3. Elton Road property. It was termed "remote".
4. Memorial Stadium site. Would eliminate current parking.
5. Old Farmer's Market was rejected as it could block UMC's path of growth.
6. Sun-N-Sand property owners do not wish to sell.
7. Site north of Smith-Wills is considered the best state-owned site. The study stated
"This site is adjacent to the existing Education and Research Center and, therefore, close to other state properties. It is reasonably close to the State Capitol Complex. The site is relatively safe and should be attractive to both employees and visitors. The property has abundant tree cover and with careful site work should provide a well landscaped setting. Two existing traffic lights off of Lakeland Drive will facilitate access to the site. This property is in a relatively central location and adjacent to a major traffic artery, Lakeland Drive. It is convenient to I–55 and has relatively good ingress and egress. Because of the high-end residential nearby, future stability should be assured."

The study then discussed several non-state-owned sites:
1. 249 W. Mitchell Avenue - A 58,000 square-foot warehouse offered for purchase or lease which the owner indicated a willingness to expand.
2. 1001 Industrial Park Drive (formally Delphi – Packard Electric) - A 290,000 square-foot warehouse offered for lease .
3. 1577 Springridge Road (Existing DOR facility) – A 164,000 square foot-building offered for sale.
4. 750 Boling Street (Capital Business Center) - 25,000 square feet of existing office plus 135,000 square feet of office space constructed inside of the existing warehouse, and a new 40,000 squarefoot print shop/warehouse.
5. 125 S. Congress Street (Capital Towers) - A 194,591 rentable square foot building, plus a new 20,000 square foot building to be constructed, has been offered for lease or purchase.
6. Highland Colony Parkway (address not provided)- A proposed 200,000 square foot new building has been offered for lease.
7. 175 East Capitol Street (Landmark Center) - A 345,000 square foot office building has been offered to purchase or 200,000 square feet has been offered to lease.
8. 324 Commerce Street - A proposed new building has been offered for lease.
9. 210 E. Capitol Street (Regions Plaza) - A 162,687 square foot building has been offered for lease.
10. 500 Clinton Center Drive (South Pointe Business Park) - An existing 120,000 square foot building (Building 2) has been offered for lease with a proposed expansion to meet the full, 200,000 square foot requirement.
11. 382 Galleria Parkway (Vienna Square) - An existing 117,200 square foot building to be expanded with new construction has been offered for lease or sale.

The study narrowed the the eleven choices down to four:
1. Lease the Landmark Center
2. Purchase the Landmark Center
3. Lease at Region's Plaza
4. Lease South Point Business Park











33 comments:

Shadowfax said...

I probably overlooked it, but what did 'we' pay for this study and why did 'we' contract with a private firm to do it in the first place. With as many state offices/agencies/departments as we have, isn't there one somewhere with the capability to research available properties and roll out some feasibility figures?

I think there's a study out there somewhere indicating Mississippians lead the nation in the ability to pour money down study-ratholes.

Anonymous said...

Sure would have been nice to see Allen remotely as interested in saving Jackson taxpayers from expensive lemons.

Anonymous said...

This is a relief.

Without this study, we'd have had to foot the bill for the worst and most expensive choice on the list.

So, as long as the study cost less than $72 million PLUS ( and it was unnecessary to go into the PLUS as the building costs + interest alone were so excessive), we taxpayers saved a pot load of money.

It's true that most anyone off the street could ( and quite a few,did) tell the Governor that the Ridgeland/Lakeland site desired by Ed Morgan (gotta love that he's the Commissioner of the Dept. of Revenue now rather than Tax Commissioner) that buidling his monstrosity was a bad idea. If citizens hadn't pointed out the obvious and put the skids on the Lakeland/Ridgewood site,it would have been a done deal. Morgan had already " selected" the site.

There were plenty willing to " trust" Ed Morgan. After all, he's a Republican politician and ex-football player who was asked to recommend the best site so why not ASS U ME he can do math and has common sense and taxpayer interest at heart?

Apparently,playing football at a big time school is as dazzling to male politicians as DD cups!

And, if memory serves, didn't Morgan tell the public the costs were $10 million?

I hope this also confirms to the Governor that Morgan is not fit for the job or a REAL Republican!

We don't need an agency head, especially handling taxes, who is so fiscally irresponsible as to have proposed the Lakeland/Ridgeland site to start .

I just hope the MS Republican party will take notice of the other Republicans behind this boondoggle proposal and GET that they became Republicans only in hope of lining their own pockets or else are so stupid as to lead the party astray. In either case, these guys need to be kept on a very tight leash.

Anonymous said...

$4MM was recently authorized by the legislature in the latest bond bill to do a study as presented above.

I seriously doubt that the C/W study above cost anything close to $4MM.

At the end of the day, a great victory for the taxpayers and the state capital.

Anonymous said...

I hope this also confirms to the Governor that Morgan is not fit for the job or a REAL Republican!

Give Morgan credit for picking the right location for his dream building even if the dream was a joke. Because there is a whole lotta faux-Republicans and RINOs in the Eastover neighborhoods immediately adjacent to where Morgan wanted to build his temple. That's why RINO Ben goes out of his way to thank Cecil Brown and why Cecil bent over backwards to please his RINOs. If anything Morgan would have been in excellent company right there in RINOville, er, Eastover.

Anonymous said...

Another flower in the bonnet for Leland Speed. I was at the first Sunday afternoon River Hills meeting regarding this proposed fiasco on Lakeland Drive.

I never dreamed this would come full circle as it has. Thank God sanity prevailed.

Anonymous said...

Is there any clarity on leasing the Landmark versus the state buying it?

Anonymous said...

Something I find troubling: Someone REALLY needs to explain why the State of Mississippi hired an OUT-OF-STATE brokerage firm to represent them in their search for suitable space! (Take a look at CushmanWakefield.com You'll see that they don't have a Mississippi location; therefore, in accordance with Mississippi State Real Estate Commission rules, they're not a Mississippi broker.....an unconscionable decision by DFA, especially in hard times like these!)

NO doubt that leasing was the much better option than building (and buying would have taken them off of the tax rolls), but they (a) used non-Mississippi brokerage (I know, I know, they cooperated with a Mississippi broker - but that's not the same thing), and (b) they most likely didn't get the best deal they could have gotten by going to Landmark.

Leave it to government.........

Shadowfax said...

1:51; does this deal smack of Jim Hood or what?

Anonymous said...

Not just govt 1:51. Why has the grossly overpaid $390,000 annual Duane O'Neill at the Greater Jackson Chamber hired an Atlanta outfit to come up with its new 10 year plan? Mean to tell me that there isn't probably a dozen companies right here in the metro who could do the same work with ease? Could O'Neill be any more tone deaf and insensitive to the plight of Mississippi businesses?

Anonymous said...

1:51. An RFQ was posted for this contract. C/W won straight up, and were welcomed as a company with no dog in the hunt. All types of shenanigans were transpiring behind the scene to get the Lakeland Drive building built, and the last thing we (the state) wanted was a "coerced" decision, as has been made the first time around.

There ALREADY had been done, a "study" by a "good ole boy" group from Mississippi, headed uip by an architect from Hattiesburg.

This is the local, Mississippi group that said "Lakeland Drive is far and away better than any building or real estate available".

C/W is a world class company that does analysis like this all over the world. NO ONE in mississippi is capable of doing what they do. NO ONE.

Anonymous said...

NO ONE in mississippi is capable of doing what they do. NO ONE.

We all know who uses that bullshit argument repeatedly.

Anonymous said...

Oh is wittle 5:03 all pissy about something good happening again. Porr lil impotent thing!

Anonymous said...

5:59. It is the obsessed piss ant that "don't do shit with his worthless fucking life", but blog.

Anonymous said...

RINOs...

Love the class warfare INSIDE the GOP

I guess the RINOS need to take their wallets and educations elsewhere...how about The Champagne Party?

It does seem strange however for those who feel inferior to RINOS to complain about class warfare as you have to be on the wrong side of it if you don't like the RINOs or the poor.

Bad news for you...you're voting against your self interest.

Shadowfax said...

"When the smoke clears, there's NObaddy capable of doing a survey. NOOOOOoooobaddy."

Joe Joe Cannon

Anonymous said...

Are you the one, perhaps, who points out the typos of the blog owner? That happens pretty damned frequently. It didn't impact me, but did appear to me also that the writer thought Lakeland was in Ridgeland. Ridgewood didn't occur to me since the writer said Ridgeland. I thought maybe the writer was either poorly informed or just.............stupid.

Anonymous said...

Cushman and Wakefields experience and independence was essential for this study. I applaud the Governors office for taking a stance to save the taxpayers millions.

Kingfish said...

Cleanup in progress.

Boarzombie said...

Just throwing this out there for discussion -- no real rooster in this fight -- but here it is:

Government buildings pay no property tax, etc. Private buildings do. By paying for a lease rather than constructing a building the State is paying money to a leasor who in turns pays taxes to the City/County -- money the leasor would not be paying if he were to relocate or default and have the building devalued. So in that way the state is propping up downtown property owners by leasing -- which may not be a bad idea if downtown is ever gonna come back. But it might offend some -- state taxes propping up private landowners.

Discuss...Or don't.

Anonymous said...

I understand the thought process on the property taxes.

I guess it is just a cost benefit analysis. I would rather pay some property tax instead of building an "asset" that will have other charges such as maintenance and insurance. I also haven't seen the lease to read what the State will pay.

But it makes for a good discussion.

Anonymous said...

"I also haven't seen the lease to read what the State will pay."

Try $12.90/foot. $50/foot in re-hab paid by the developer/owner.

AGGRESSIVE.

Anonymous said...

And where was the City of Jackson? They are the proud owners of the 200,000 foot, vacant Dillards at Metro Center. Not even proposed?

Anonymous said...

interesting article:

http://www.tax.ms.gov/complianceaward.html

Anonymous said...

Plelnty of fallicies in this study - it was designed to result in a location in downtown Jackson. One of the criteria was "distance from the Capitol". Over 400 hundred employees in this building and maybe three or four that have any reason to be at the capitol. And those at the Capitol have no reason to be at the DOR building.

Ben Allen et.al. were pushing the state to help shore up downtown property values by taking some of the massive empty space off the market. No problem with that if it produces a good result otherwise. But anything that wasn't "close" to the Capitol was excluded, thus a result that will cost $1M plus more per year in rent.

Cellular South opens its mail and cashes its checks in Franklin County. Frankly, thats what over half of the employees that will be moving to high priced office space in downtown Jackson will be doing under this recommendation. But Parkway & Eastover will be able to maintain their rental rates, so all is fine.

Now, if we could just have us a convention center hotel next door.

State Auditor said...

8:13 is full of shit. Which "study" is full of fallicies?

The first TWO that were designed to substantiate a NEW building, or the third one, which actually measured new versus present office capacities (AFTER the cookie jar was exposed).

Kingfish, if I were to send you all three, with the patterns of DECEPTION highlighted, will you post them? All 80 plus pages of each?

8:13 you have not READ any of them.

State Auditor said...

Also 8:13, they are LEASING the space for $12.90 per foot, compared to normal class A space that is in the 20 buck range + (AND $50 per foor for re-hab). Hardly "high priced" you bogus piece of shit.

Anonymous said...

I've read them all. Plus a fourth that you don't mention (maybe you haven't read them all) that had the state building a new building in Rankin County.

I'm NOT in favor of building a new building - on Lakeland, or downtown. But there were other present office capacities other than 'walking distance to the capitol'.

The fact that Jackson has a high (27% according to Barbour, and I'm sure he is correct as his MDA head probably has given him numbers every day) vacancy rate is not the problem for state taxpayer to pay. We've already ponied up to build Farrish Street. Then we financed the Telcom Center (you know, that building that is next to the Convention Center, but we don't call it a telcom center anymore since all the telcom business didn't want or need it). Then we gave the Telcom Center to Jackson, who is losing money on it now and needs a hotel paid for by taxpayers.

No, my problem with this study, is that it only gave credit to buildings downtown - Regions Bank, Landmark, and South Point. And these bureaucrats have no business needing to be downtown. But I'm sure Parkway is happy - they represented Landmark and now have something to support their rents across the street.


Hurrahhh! Now with the state spending $1.5 million more per year in rent, Jackson's vacancy rate will probably decrease to 25%.

8:52 - do more than read studies. See what is behind them and what is left out.

Shadowfax said...

Methinks 8:52 got his britches scalded, if not his ass!

Anonymous said...

9:01....the owners of this building made a competitive bid that will save the taxpayers money. The shenanigans in this deal occurred before this study by those trying to steer this elsewhere without a competitive process. My guess is that you are somehow part of that losing group.

Anonymous said...

9:01 where do you get the Clinton based South Point is downtown?

Anonymous said...

Looks to me like 9:01, who can't even SPELL Farish Street, is another one of those "Jackson Sucks" at all costs, "know-it-alls" that apparantly "don't know shit" about that of which he speaks.

9:01. "No, my problem with this study, is that it only gave credit to buildings *downtown* - Regions Bank, Landmark, and *South Point*."

Anonymous said...

The revisionist penning editorials at the Mississippi Business Journal needs to actually read Haley Barbour's letter to the legislature dated Sept 30, 2011.

Barbour recommends leasing the Landmark Center NOT the purchasing of the building. The cost savings outlined in Barbour's letter are also based on leasing not purchasing.

Facts are inconvenient things but the bottom line is that Haley Barbour DID NOT RECOMMEND PURCHASING the Landmark Center.

Carry on carrying water.



Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.