Friday, August 1, 2008

One reason why we have a budget crisis

The city's Department of Transportation is paying millions of dollars in rent for six floors of premium office space that are sitting empty.

The department's move into the space will be delayed by at least one year, by the agency's estimation, and will cost the city a minimum of $11.8 million — the annual rent for the 368,147 square feet of office space at 55 Water St. in Lower Manhattan that the department will someday call its headquarters.

The stalled move and the city's payments for empty office space are raising objections from City Council members, who say it is disappointing that taxpayers are footing the bill for one year's worth of rent and getting nothing in return, especially at a moment when the city is facing a budget gap.

City Spends Millions on Empty Offices


Anonymous said...

While it is upsetting that the city will be paying for vacant utter waste of money...there are a few things you must consider.

While the overall lump sum of money sounds outrageous...$11.8 million. It equates to $32 per square foot. That is actually a huge bargain for anywhere in the city especially for a class A building...and yes, even in these tough economic times. You can barely get space in LIC or Brooklyn for that rate, even if there was that much space available.

Secondly, often times with HUGE leases like this, offers of several months of free rent are made as part of the deal. So most likely, they will not be paying for the full years worth of rent, and this was just something the council was saying to appease simple minded folks. Yes the city is facing a budget gap, and yes it is empty space, but my guess is, they wont be paying for the space for at least 6 months, and trust me...they got a bargain for $32/sf

EW-3 said...

55 Water St - what a cool place.
I worked there in the 70s when it was chemical bank. Great views of the harbor in 1976.

Anonymous said...

but that is only one of many state and city agencies pissing our money down a rat hole

Anonymous said...

it actually sounds like the city got a good deal on this space and a one year delay to renovate a huge office w/ a long-term lease is not even remotely unusual or scandalous.

does queens crap really believe that this is why the city is having budget difficulty?

are you really that stupid?

yes, we know that indeed you are that stupid.