Municipal Services Center’s maintenance bill tops $54 million

A long-awaited Municipal Services Center maintenance study’s results has some St. Petersburg City Council members wondering if they are better off hanging a for-sale sign on the historic building.

City officials discussed the evaluation’s recommendations – and associated costs – for the first time Thursday. Administrators received the 443-page report from Harvard Jolly in October 2023 yet did not share the findings until Councilmember Gina Driscoll asked for an update in January.

The study, obtained by the Catalyst through a public records request, states it will take $54.54 million to maintain the building for 15 years. That excludes soft costs associated with engineering and permitting processes.

“I think, ultimately, we are thinking about building something new and selling this property because of its location,” Driscoll said. “This creates an incredible opportunity for economic development and the next great project …”

The original Municipal Services Center (MSC) building was built between 1927 and 1929 at One 4th Street N. A similarly-sized addition opened in the 1950s.

The city purchased the site in 1985 and adapted it to house municipal operations. Officials last renovated the 10-story, 140,859-square-foot facility in 1995.

The MSC now houses 540 city staff across 14 departments. The evaluation states immediate needs total $387,000.

The maintenance bill soars to $24.69 million over five years. Driscoll called those amounts “jaw-dropping.”

She noted costs would increase with inflation. Driscoll also reminded her colleagues that the property’s valuation was $15 million in 2021. “That sounds like a building whose time has come,” she added.

While Harvard Jolly’s immediate needs include sealing the roof and interior openings, the study does not address the potential effects of pervasive water intrusion. City Architect Raul Quintana said officials have never checked for mold.

“We all have this report, and we all have a responsibility,” said Councilmember Lisset Hanewicz. “I want to make sure that somebody’s going to tell me we have done what we’re supposed to do on this – because it does scare me.”

Aaron Fisch, director of real estate and property management, said his crew walks the building daily and has not seen signs of mold. He also admitted that was not a prerequisite for testing.

The building’s basement shows extensive water damage. Screengrab, city documents.

Carcinogenic asbestos fills the MSC’s interior paneling, like most buildings its age. That presents another construction challenge, and potential expense.

Harvard Jolly recommended replacing the elevators, which are prone to malfunction. The MSC also needs a roof replacement, and Quintana said administrators are already planning to overhaul its heating and cooling system.

He said the 257-space public parking garage is in “fair” condition despite some cracking in stucco walls. Driscoll noted that many issues – Harvard Jolly listed 82 in its five-year plan – relate to code compliance.

“I think the building is well-maintained,” Quintana said. “It’s not ideal in some ways … Getting us to the point where we can begin planning and designing a new building is the goal.”

City Administrator Rob Gerdes estimated the cost of a new municipal headquarters at $75 million, or $6 million annually over 30 years. He said officials could disregard some of the evaluation’s recommendations if they plan on moving into a new facility.

Former Mayor Rick Kriseman’s administration evaluated plans for a new MSC in 2019 after receiving an unsolicited offer from a New York-based development group. He then launched an open bidding process and selected a proposal from Third Lake Partners.

Third Lake sought to buy the MSC for $12.5 million and build a new facility across from City Hall. The firm would have either renovated the current building into office space or demolished it as part of a redevelopment project.

The previously proposed new facility, encompassing 130,000 square feet, would have cost roughly $50 million in 2022. “I don’t think that’s big enough,” Gerdes said. “That’s one of the reasons why I recommended against the deal to the mayor (Ken Welch).”

The building as it looked in the 1920s and early 1930s. Screengrab, city documents.

Fisch said administrators have about $6.5 million available for capital improvement projects in 2024. Gerdes credited the council’s efforts to transfer $17 million into that fund over the past two years.

He said a complete rehabilitation could allow the city to stay in the current location indefinitely. Gerdes said city officials have also discussed building a campus adjacent to the new District Court of Appeals project at 535 Mirror Lake Drive.

“I want our employees who work in the MSC building to know that we’re on it,” Driscoll said. “That you all are doing the maintenance that can be done, and we’re looking for a future plan.”

The council agreed to continue discussing the MSC’s future at an upcoming Economic Development and Workforce Development Committee meeting. Administrators will check for mold immediately.

Gerdes said he has “never met a man that cares more about employees than Mayor Welch. Absolutely, we want our employees to be safe and in the best circumstances.”