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HomeMy WebLinkAboutResolution 21-R-25, Authorizing the City Manager to Direct Staff to Move Forward with Permanently Relocating Evanston City Hall to a Downtown Evanston Location and to Begin Identifying Options1/27/2025 21-R-25 A RESOLUTION Authorizing the City Manager to Direct Staff to Move Forward with Permanently Relocating Evanston City Hall to a Downtown Evanston Location and to Begin Identifying Options for a Non-Municipal Use or Exploration of an Adaptive Reuse of the Building and Property at 2100 Ridge Avenue WHEREAS, the Lorraine H. Morton Civic Center (“Civic Center”) located at 2100 Ridge Avenue in Evanston has experienced significant deterioration of multiple building systems over decades of regular use, several of which are no longer considered to be reliable for long-term operation; and WHEREAS, although the City of Evanston is committed to the equitable delivery of programs and services, due to its age and physical condition, the Civic Center is at risk of falling out of compliance with the Illinois Accessibility Code and the federal American with Disabilities Act; and WHEREAS, the Civic Center is substantially not in compliance with modern building codes, including those for fire safety; and WHEREAS, the Civic Center has limited accessibility through public transportation; and WHEREAS, because of its layout, the Civic Center continues to be a challenge to provide adequate security for building occupants and visitors; and WHEREAS, the antiquated building layout of public services at the Civic Center provides a poor customer service experience for community members; and Page 1 of 6 21-R-25 WHEREAS, the City of Evanston is committed to climate action and resiliency for all City infrastructure, and the current Civic Center building does not align with multiple goals from the City’s adopted Climate Action Resilience Plan (2018), including goals for net zero greenhouse gas emissions by 2035, 100% LED lighting, and water efficiency; and WHEREAS, because the layout is inefficient, the Civic Center includes an estimated 40,000 square feet that would not be needed (or could be repurposed to an alternate use) if the building were laid out more appropriately for office use, and the City is utilizing significant energy to heat and condition the extra space as well as resources to maintain and operate the space; and WHEREAS, the community has been discussing this issue since 1998 without a resolution that includes adequate funding for the necessary improvements, and during which time significant staff resources and funds have been consumed in studying potential options versus other productive work on behalf of the City of Evanston; and WHEREAS, without allocation of adequate funds to renovate failing building systems, the building has continued to further deteriorate while the cost of renovation continues to increase; and WHEREAS, the cost to renovate the Civic Center to resolve the above issues is currently estimated at approximately $71.1M million and there are multiple potential options for permanently relocating the Civic Center into Downtown Evanston at an estimated cost of $XX - $55M; and Page 2 of 6 21-R-25 WHEREAS, it has been determined that the City of Evanston should provide a safe, accessible, inclusive and productive city hall space for staff and community members as soon as is practicable; and WHEREAS, permanently relocating the city hall services into Downtown Evanston aligns with priorities identified by the public to have city hall be centrally located in the City of Evanston with easy access by car with free parking, and access to active transportation options, such as rail and bus transit, the bicycle network, and be walkable to as many community members as feasible; and WHEREAS, city hall services are currently being temporarily relocated into Downtown Evanston to provide a safe, secure and productive environment for city staff and the public, leaving the building at 2100 Ridge Avenue vacant; and WHEREAS, the City of Evanston does not desire to continue to spend resources maintaining the building and property at 2100 Ridge Avenue indefinitely as these resources could be used to provide services to residents and further stated City Council goals; and WHEREAS, the building and property at 2100 Ridge have potential value for adaptive reuse and property tax generation, both of which could have a significant benefit to the City of Evanston. NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1. The City Council hereby adopts the foregoing recitals as its findings, as if fully set forth herein. Page 3 of 6 21-R-25 SECTION 2. The City Manager is hereby authorized and directed to evaluate different options for permanent city hall relocation into Downtown Evanston and to cease the evaluation of options to renovate the building at 2100 Ridge for the purpose of municipal services. SECTION 3. The City Manager is hereby authorized and directed to evaluate options for the non-municipal use and exploration of an adaptive reuse of the building and property at 2100 Ridge Avenue considering City Council goals such as the development of affordable housing and considering possibilities to create long-term income generation for the City of Evanston (for example, through property tax generation). SECTION 4. The resolution shall be in full force and effect from and after the date of its passage and approval in the manner provided by law. _______________________________ Daniel Biss, Mayor Attest: ______________________________ Stephanie Mendoza, City Clerk Adopted: __________________, 2025 Approved as to form: _______________________________ Alexandra B. Ruggie, Corporation Counsel Page 4 of 6 Actual Lease Costs For 15-Year Lease and 7-Year with Opt-Out Base Rent = $21.25/sq ft Rented Space = 52,955 sq ft Annual Rent Escalation = 2.5% (by contract) Base O&M Cost = $1,001,899.63 (updated based on actual 2025 charges) Annual Escalation = 3.0% (by estimate) First Rental Year is 10/1/24 - 9/30/25 Forgiveness Period for Rent and O&M Costs is 14 months. Opt-out Cost after 7 years is $8.8M Energy Costs are Not Included (City pays separately from the lease). 15-YEAR LEASE COST: Year Annual Rent Annual O&M Total Annual Annual Cost w/Forgiveness 1 10/1/24 - 9/30/25 $1,125,293.75 $1,001,899.63 $2,127,193.38 0 2 10/1/25 - 9/30/26 $1,153,426.09 $1,031,956.62 $2,185,382.71 $1,821,152.26 3 10/1/26 - 9/30/27 $1,182,261.75 $1,062,915.32 $2,245,177.06 $2,245,177.06 4 10/1/27 - 9/30/28 $1,211,818.29 $1,094,802.78 $2,306,621.07 $2,306,621.07 5 10/1/28 - 9/30/29 $1,242,113.75 $1,127,646.86 $2,369,760.61 $2,369,760.61 6 10/1/29 - 9/30/30 $1,273,166.59 $1,161,476.27 $2,434,642.86 $2,434,642.86 7 10/1/30 - 9/30/31 $1,304,995.76 $1,196,320.55 $2,501,316.31 $2,501,316.31 8 10/1/31 - 9/30/32 $1,337,620.65 $1,232,210.17 $2,569,830.82 $2,569,830.82 9 10/1/32 - 9/30/33 $1,371,061.17 $1,269,176.48 $2,640,237.64 $2,640,237.64 10 10/1/33 - 9/30/34 $1,405,337.69 $1,307,251.77 $2,712,589.46 $2,712,589.46 11 10/1/34 - 9/30/35 $1,440,471.14 $1,346,469.32 $2,786,940.46 $2,786,940.46 12 10/1/35 - 9/30/36 $1,476,482.92 $1,386,863.40 $2,863,346.32 $2,863,346.32 13 10/1/36 - 9/30/37 $1,513,394.99 $1,428,469.30 $2,941,864.29 $2,941,864.29 14 10/1/37 - 9/30/38 $1,551,229.86 $1,471,323.38 $3,022,553.25 $3,022,553.25 15 10/1/38 - 9/30/39 $1,590,010.61 $1,515,463.09 $3,105,473.70 $3,105,473.70 Total $20,178,685.00 $18,634,244.94 $38,812,929.94 $36,321,506.11 Page 5 of 6 7 YEAR LEASE COST W/OPT-OUT: Year Annual Rent Annual O&M Total Annual Annual Cost w/Forgiveness 1 10/1/24 - 9/30/25 $1,125,293.75 $1,001,899.63 $2,127,193.38 0 2 10/1/25 - 9/30/26 $1,153,426.09 $1,031,956.62 $2,185,382.71 $1,821,152.26 3 10/1/26 - 9/30/27 $1,182,261.75 $1,062,915.32 $2,245,177.06 $2,245,177.06 4 10/1/27 - 9/30/28 $1,211,818.29 $1,094,802.78 $2,306,621.07 $2,306,621.07 5 10/1/28 - 9/30/29 $1,242,113.75 $1,127,646.86 $2,369,760.61 $2,369,760.61 6 10/1/29 - 9/30/30 $1,273,166.59 $1,161,476.27 $2,434,642.86 $2,434,642.86 7 10/1/30 - 9/30/31 $1,304,995.76 $1,196,320.55 $2,501,316.31 $2,501,316.31 8 10/1/31 - 9/30/32 Opt-Out Cost Only $8,800,000.00 9 10/1/32 - 9/30/33 10 10/1/33 - 9/30/34 11 10/1/34 - 9/30/35 12 10/1/35 - 9/30/36 13 10/1/36 - 9/30/37 14 10/1/37 - 9/30/38 15 10/1/38 - 9/30/39 Total $8,493,075.97 $7,677,018.02 $16,170,094.00 $22,478,670.16 Page 6 of 6