Administrative Office Consolidation
On February 23, the Fairfax County School Board decided not to pursue at this time the acquisition of the BPG Building, which would have completed Fairfax County Public Schools (FCPS) administrative consolidation. (Statement)
Also on February 23, the Fairfax County Board of Supervisors voted to discontinue any further consideration of the BPG Building purchase. (Statement)
Approval of Phase I in November 2004 resulted in the consolidation of departments and offices from several facilities into Gatehouse Administration Center I at 8115 Gatehouse Road in Falls Church. FCPS demonstrated proven savings with the consolidation of employees into Gatehouse I (maintenance and replacement costs, staff efficiencies) and projects additional savings with the continuation of the consolidation plan.
The following facts are offered about this consolidation:
- The project will be fully self-funded through savings and efficiencies.
- Not $1 will come from the Capital Improvement Program.
- No money will be taken away from schools or students.
- Fairfax County residents will not be taxed to pay for the building or renovation costs. The acquisition of the BPG building is self-funded from savings directly attributable to the consolidation. In the short term there are actual cash savings in fiscal years 2010-2012 that total approximately $11.4 million; these savings can be used to help address our current budget challenges.
- Consolidating employees at one site reduces travel between sites for meetings, enables reduction in use of fuel, reduces travel reimbursement costs (green issues).
- Because of the increased staffing efficiencies, FCPS expects to save an estimated $2 million per year over the 31-year life cycle.
- This is a great time to purchase real estate.
- Interest rates are low.
- Tax-exempt interest rates are favorably low.
- Motivated seller enabled us to get the building or well below the going rate per square foot of comparable buildings in the county.
- No payments will need to be made until fiscal year 2013.
- Purchasing this existing building will cost $50.4 million less than constructing a second Gatehouse building and the building is 67,000 square feet bigger than Gatehouse I.
- A third party has verified that this is a fiscally prudent move for the school system and the families and communities of Fairfax County.
- FCPS demonstrated proven savings with the consolidation of employees into the existing Gatehouse I building (maintenance and replacement costs, staff efficiencies), and plan to do it again with Gatehouse II. Another Smart Move.
- This consolidation will centrally locate services to provide “one-stop shopping” for families.
- This consolidation may allow us to move some capital improvement projects forward.
- FCPS can return some existing administrative office buildings (Lacey, Devonshire) back to their communities for schools.
- Depending on growth in the Tysons Corner area, Dunn Loring may be used as a school again.
- Three buildings will be conveyed to the county in exchange for increased capital improvement funding.
History
On February 9, the School Board presented to the Board of Supervisors a newly-negotiated proposal for purchase of 8111 Gatehouse Road in Falls Church (BPG Building). Summary of Changes (pdf) | Fact Sheet (pdf) (2/3/09)
October 2, 2008, the School Board's motion on the reconsideration of purchase and sale agreement for 8111 Gatehouse Road passed unanimously Complete report (10/2/08)
At its regular meeting on October 2, 2008, the School Board reconsidered the potential acquisition of the new administration building. View the agenda item. (9/29/08)
Statement on the Fairfax County Board of Supervisors' Action on the Gatehouse Administrative Consolidation Proposal (9/22/08)
The School Board motion passed 11-1 to approve the acquisition of, and financing for, property located at 8111 Gatehouse Road. Complete report. (9/18/08)
Resources
Fact Sheet (pdf)
Phase II Consolidation Summary of Changes (pdf) (2/03/09)
Occupancy Model Assessment (pdf)
Third Party Review
Business Model (pdf)
Background and Cost Savings of Gatehouse Phase I (pdf)
A map and driving directions to Gatehouse Administration Center I are available.
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