Joliet Purchases Building in Downtown City to save $30,000 Annually
The Joliet City Council this week approved the execution of a real estate purchase of an historic downtown building to house some current and future employees of the city. The building at 63 W. Jefferson Street, has approximately 7100 square footage of space and is located along Jefferson Street between Joliet Street and Ottawa Street.
Finance Director Kevin Sing estimates the city could place between 40-50 employees in the building between the two floors. “We need additional space for our employees and this purchase will allow us to move employees from the Rialto Building into this space a short walk from City Hall,” explained Sing.
“The savings from the rent at the Rialto location which is $60,000 a year to the 63 W. Jefferson location, nets a cost savings of $30,000 annually for the city,” added Sing. Sing also acknowledged the rent from current tenants at the Jefferson location would cover the cost of purchase and ownership of the building.
The historic property is believed to be approximately 100 years old and was extensively renovated in 1992 after acquisition by the current owner according to an appraisal of the building. Updates and maintenance of the building has been ongoing with most recent work done in 2022.
The purchase price is $820,000 which is “a midway point between two appraisals of the property” added Interim Corporation Counsel Chris Regis who is overseeing the purchase. Regis estimates the property will close in 60-90 days with occupancy of staff occurring sometime this fall.
The City of Joliet currently has 920 employees up from 835 back in 2015 and owns roughly six properties that house city employees. City Hall does not have room for expansion and is land locked by neighboring streets.
“Until we can adequately plan for our long-term placement of current and future employees, this is a good option for us to house staff,” Sing added. “This also allows the city to play a key role in controlling property on a main thoroughfare and help shape our downtown redevelopment.”
Press release