Minneapolis school district eyes new digs

The Minneapolis School District is considering moving its headquarters to save on energy costs, consolidate administrators in fewer locations and create a welcoming center for district families.

Tuesday night, the school board discussed eight options, including a renovated version of the current building. The locations are spread across the center of the city, between Broadway and Lake Street.

The current headquarters is a decrepit former light-bulb factory that has served as the district's home for about 50 years. Just west of NE. Broadway and Central avenues, the building has 324 people working in more than 237,000 square feet. Much of it isn't ventilated or air-conditioned.

"We have all this space, but so much of it isn't usable," said Steve Liss, the district's chief of policy and operations.

Minneapolis finance chief Peggy Ingison said that the district is likely facing a $19 million deficit for the 2010-11 school year, the latest in a long string of budget deficits for the district.

The deficit is because of declining enrollment, projected flat state funding for next year and a projected 1.5 percent increase in spending on things such as fuel, utilities and benefits. It's at least the 10th consecutive year of such deficits, Ingison said.

The district has 535 employees at four administrative sites throughout the city, including the headquarters. Ideally, a new building would accommodate everyone.

The district is considering four downtown sites, including the Ford building next to the new Twins stadium and the former Valspar building by the Metrodome. The Ford building and a building at 111 Washington Av. would be leased space, shared with others.

Board member Jill Davis said it is imperative that the district demonstrate to the public that the move would save money and not take resources from classrooms.

"How would a typical resident react to this?" she asked. "We just passed a referendum, and we have [no] money."

Board Member Chris Stewart said the economizing potential of the plan made it like "trading an SUV in for a [Toyota] Prius." But he opposes the downtown locations, saying downtown is "not family-friendly; it's not kid-friendly."

The district put out a request for proposals from owners of various sites last spring and received nine proposals in June. The district will likely decide what it wants to do in January or February, and a move could happen anywhere from a year to a year and a half from now.

Liss said he envisions a building where public conference rooms and the school board room are near the front, to welcome the community. It would have an adequate number of conference rooms (there are four now) and up-to-date technology.

A single location for functions such as copying would eliminate duplication of such services that occurs now across four buildings.

"We want to encourage collaboration," said Liss, who said that the current headquarters discourages it, with its "long hallways, with no windows, and people in the basement."

The district puts the cost of doing nothing at about $87 to $90 million over 30 years. That is the amount projected for minimal maintenance and operating costs at the current headquarters. Sites the district is looking at are projected to cost about $75 to $100 million over that time, which includes buying or leasing a space and operating it.

"If we don't do anything, we're actually continuing to invest money," Liss said.

The district is looking at sites now because of the price advantage afforded by a weak real-estate market, and because district officials think good financing would be available. There is a lot of open office space, Liss said.

Board Member Pam Costain said the move better not cost more than the district's current accommodations.

"And it would really be lovely if it could save us money," she said.

The options being considered are:

• The current spot, 807 NE. Broadway

• 1001 Glenwood Av. N.

• 111 Washington Av. S.

• A split between 1250 W. Broadway and 2225 E. Lake St.

• 1010 Metrodome Square

• The Valspar Building, 11th Avenue and 3rd Street S.

• The Ford Center, 412 N. 5th St.

• Penn and Plymouth avenues

Emily Johns • 612-673-7460