Columbia plans to buy $22.5 million Main Street tower for new city offices
One of the most prominent buildings in downtown Columbia could become a new hub for city government and services, eventually consolidating most city offices into one location for the first time in many years.
City officials plan to purchase a 12-story building on Main Street for $22.5 million to create a new municipal office complex.
The building at 1401 Main St., across the street from the Sheraton hotel and The Hub student apartment tower, could belong to the city by October, according to a proposed purchasing contract that will be considered by City Council members Tuesday.
Columbia’s current City Hall, a historic building in the 1700 block of Main Street, is far too small to house the majority of city government functions. It houses City Council chambers and offices for the mayor and city managers, among other functions.
Other city offices are spread out among several downtown buildings, including the Washington Square complex on Main Street, which the city owns, as well as numerous spaces the city leases from other property owners. The city currently leases space on several floors of 1401 Main.
The goal is for the city to ultimately save money by no longer paying rent to other landlords and to own all of its own office space, city manager Teresa Wilson said. Consolidating all city government offices at 1401 Main also will allow the city to sell some of its other properties, including Washington Square, which would put them back on the tax rolls to generate revenue for the city, Wilson added.
This move will allow the city “to get out of paying a lot of expensive leases and to have a municipal complex that we own and control,” Wilson said. “Also, an intangible benefit is having your employees together in one central location.”
The city plans to secure space on seven floors of the building for its own offices, plus storage space in the basement. Other businesses could continue to lease spaces in the building once the city owns it, if the purchase goes through, Wilson said. Those rent payments would generate revenue for the city, Wilson said.
City leaders have been considering options for a new municipal complex for several years.
In 2017, the city asked developers to pitch ideas for building a tower for city offices to also possibly include residences and space for businesses to lease. At the time, it was thought the city could partner with a private developer to build on property it owns near City Hall, at the former United Way headquarters.
But building a tower from scratch ultimately would be more expensive than renovating parts of 1401 Main, which is in good shape, Wilson said.
Around 400 city employees could be moved from other locations to work at 1401 Main St. Customer-facing departments such as utility bill payments, business permitting and planning would be among those services — “a one-stop shop, hopefully” for doing business with the city, Wilson said.
As for the current City Hall, which is the second-oldest government building in Columbia (behind only the S.C. State House), it is likely that City Council could continue to meet in its ornate and recently renovated council chambers going forward, Wilson said.
“That is the people’s house, and we foresee still utilizing it for public meeting space for our council because it’s just a beautiful tribute to our city,” Wilson said.
Other offices at City Hall, including the mayor’s, city manager’s and assistant managers’, are on the table for moving to 1401 Main, Wilson said.
The taxable value of the 44-year-old building and property at 1401 Main St. is about $13.3 million. The building is noticeable in the city skyline, marked by its pink-toned windows.
The building is owned by a partnership named MS Joint Venture. The individual owner or owners have not been identified.
City Council members will vote whether to approve the purchase on Tuesday. If approved, the city will make a $450,000 down payment, and the sale could close by Oct. 1.
This story was originally published February 24, 2020 at 2:02 PM.
