It appears Joliet City Hall does not have enough space to provide government services out of the building at 150 W. Jefferson St.
For that reason, the Joliet City Council Tuesday approved buying a 7,090-square-foot private office building in downtown at 63 W. Jefferson St. for $820,000. The newly purchased building is on the next block east of City Hall.
A staff memo presented for review Tuesday states that City Hall has “outgrown existing office space.” This is not the first time the city has looked elsewhere for space as it previously leased offices in the downtown corridor.
In 2021, the city council entered a three-year lease for $150,000 at the Two Rialto Square office building to staff employees in the utilities department.
Mayor Terry D’Arcy, who voted for the purchase, said by buying the building, the city stands to save money on rent.
“We looked at financials and appraisals and that is why we chose this as a public asset to the city,” said D’Arcy. “The city will also be renting out space (in the building to potential tenants).”
Council members Joe Clement, Larry Hug and Jan Quillman voted against the purchase.
“It is my opinion that we are overpaying for this,” said Clement.
Quillman found the purchase as only a temporary fix to relieve congestion at City Hall.
“I don’t know how we will get our money back because we won’t be there forever,” said Quillman.
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.
He 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 to 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.”