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City to lease Riverwalk space to Alabama Department of Revenue; city to cover buildout and janitorial costs
Summary
Council discussion covered a negotiated lease with the Alabama Department of Revenue, a Riverwalk office fit-out with a $100,000 city contribution and $150,000 from Aldor, and added janitorial costs for roughly 60 state employees moving into the city building.
The Hoover City Council discussed a proposed lease for office space in the Riverwalk building with the Alabama Department of Revenue and related budget adjustments needed to prepare the space and cover ongoing services. City staff said the lease would begin Sept. 1 and that the city negotiated the rate up to $25 per square foot for the last three years of the contract.
The matter mattered because the department’s regional office will relocate into the Riverwalk, bringing an estimated 60 employees to the fourth floor, city staff said. City staff described a plan to reallocate $100,000 from the renovation budget for the 3021 Building on Warner Road toward build-out work at Riverwalk; Aldor will contribute $150,000 and the city will invoice Aldor after paying the full invoice.
City staff described the lease and build-out details to the council during the work session. “Commencement date of September 1,” a city staff member said during the discussion. The staff member added that the city began negotiations at $23 per square foot and was able to secure an increase to $25 per square foot for years three through five of the contract.
Council members asked for clarity about the scope of services the regional office will provide and about the region the office will serve. City staff said the Riverwalk location will function as a regional office (headquarters for the public is still in Montgomery) and reiterated the need to plan for additional janitorial services once the state employees move in.
To prepare for the move, staff proposed reallocating funds and adding janitorial coverage through contract invoicing tied to the rent agreement. “When we’re adding 60 additional people to that floor, then we’ll need to contract out those services,” a city staff member said. The city indicated it will pay the invoices and then bill Aldor for its share.
No formal vote on the lease or related budget amendments was recorded in the transcript of the work session.
