State needs to sell surplus and outdated properties, Haley says
Seanna Adcox
https://www.augustachronicle.com/story/news/2015/12/10/state-needs-sell-surplus-and-outdated-properties-haley-says/14344604007/
COLUMBIA - Gov. Nikki Haley said Wednesday that the state needs to sell its "money pits," starting with eight properties that include the state Education Department's administration building.
Selling the properties identified so far would enable taxpayers to avoid spending$30 million on maintenance and other expenses over five years, according to a report by a real estate firm hired to assess the state's inventory. The figure is not a direct savings. Haley said she envisions profits going into a fund to lease new and renovate existing office space, to eventually save taxpayers money in future administrations.
The report documents7,800 public buildings, including college property, on2,500 parcels of land. Real estate firm CBRE has so far visited222 sites. While the assessment work continues, Haley said the report lays out her plan for managing the state's real estate.
"We don't need to own this much space," she said. "I want this property out the door."
Haley said it's also a quality-of-life issue. Employees can't love their jobs if they go to offices that haven't been updated in decades, stink and might even be making them sick, she said.
Superintendent Molly Spearman said her agency welcomes the idea of moving, as its location doesn't provide adequate meeting space or parking.
Other recommendations in the report include shrinking the square footage employees occupy. Renovating four buildings using new "space standards" would save an estimated$32 million over30 years, according to the report.
The report stems from questions Haley began asking when she came into office in2011, as she sought a tally of state property.
After continued resistance, she issued an executive order in October2013 directing her16 Cabinet agencies to provide an accounting and identify surpluses. Other agencies participated voluntarily. CBRE was hired after a preliminary inventory was released in April2014.
At the time, Haley applauded the Department of Employment and Workforce for putting10 vacant offices up for sale.
On Wednesday, the agency said it sold four properties in thepast fiscal year for a$5 million profit and has 13 other facilities and two pieces of land up for sale. Across state government, about50 pieces of surplus property are listed for sale by the Department of Administration, with listings dating back to2004.
Agency Director Marcia Adams said recommended changes in the state's cumbersome sales process should enable the state to get rid of more property faster.