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Lawmakers press DGS on Citizens Plaza sale after decades‑old purchase price referenced
Summary
Representatives asked why Citizens Plaza—bought circa 1986 for about $26 million—sold for substantially less; DGS said the sale price reflected market demand for class B office space and repurposing costs required by buyers.
During the Feb. 23 hearing, Representative Williams asked Department of General Services officials to explain why Citizens Plaza, purchased in about 1986 for roughly $26 million, sold recently for an amount considerably lower than original purchase price.
Deputy Commissioner John Hall said the property was put out for bid and the price reflected the best offer in the current market for class B office space, noting that prospective buyers planned to repurpose the building—such as converting it to a hotel—requiring substantial renovation. "That was the best bid we got," Hall said, adding that prior attempts had yielded even lower offers.
Members asked how many proposals were received; Hall said he did not remember offhand and would follow up with details. Lawmakers expressed concern that the state may have accepted a below‑market transaction given future nearby redevelopment opportunities, but Hall emphasized vacancy type and renovation costs as drivers of the sale price.
DGS committed to provide additional procurement details to the committee on request. No formal action was taken during the hearing.
