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Note from Rep. Les Gara
Note from Rep. Les Gara  
It's Still Alive? Anchorage Legislative Building Lease Too Expensive, Not Ended Yet
Note from Rep. Les Gara

January 6, 2016

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ANCHORAGE – A funny thing happened when I was gone for vacation. At first it looked like legislators would come together and finally agree that we needed to end the overpriced Anchorage Legislative Office Building lease. Then they didn't.

Supporters of the building have until the end of the month to come back with a "new" renegotiated lease price on this building. You should know what to measure that against. That is why I'm sending you this newsletter - so you can see how much cheaper the non-partisan Legislative Research Division has said moving to the Atwood State Office Building would be. There are other options too, but this is a good benchmark, and you should let your legislators know you get it. Leasing at the nearby Atwood Building would save roughly 90% of the current $4.2 million/yr. cost.

As you may know, I've fought this lease from the beginning, and it hasn't endeared me with some of my colleagues on the other side of the aisle who've defended it. I've voted to move from this building, and with Sen. Bill Wielechowski, I filed legislation in 2014 to stop anything like this from happening again - by requiring public notice and public comment on any proposed sole source legislative building lease or purchase. Those who supported this building blocked that bill from moving.

Fortunately, we are now also hearing some critical voices from across the aisle in the legislature and we know, outside the Legislature, people of all political views think this building wastes scarce state money. It's time this becomes a bi-partisan issue. Public pressure has helped us get where we are, but the public needs to keep up the pressure.

Arming You With Information:
If This Lease Is Renegotiated It Should Be Compared to the Low Cost of Moving

Space at the 7th Avenue Atwood Building can be rented for between $277,000 - $838,000 per year, depending on the amount of space that's rented. That is shown in a report by the Legislative Research Division, which is linked here

An initial inquiry by the Legislative Affairs Agency asked the cost for leasing roughly 25,000 square feet for the Legislature. That square footage at the Atwood Building would cost $475,000 per year, or $3.8 million per year LESS than the current lease in building located roughly five blocks away.

Any re-negotiated lease should be measured against this cost.

Why The Lease Hasn't Ended Yet

Last month, the Alaska Legislative Council voted to end the lease - sort of. Unfortunately, some supporters who've opposed efforts to save legislative leasing costs added a clause. It allows 45 days to renegotiate the costs of this newly built, far too costly building. Supporters of this lease have already argued the current high cost is "market value" cost, and they wanted the right to renegotiate what they'd again call a market value cost. The only member of my caucus on this Committee, Sam Kito (D-Juneau), said that clause concerned him, and that it could be used to kick the can down the road and keep us in this building longer. I agree with Sam. We should all be concerned until attempts to keep us in this lease stop.

So, consider yourself armed with information. You might need to use it.

As always, call if you have any questions of if we can help.

My Best,

[signed] Les Gara

 

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