Monday, February 05, 2007

From 2/5/07 THE CAPITAL TIMES
Editorial: Go slow on building sale

On the surface, the state's proposal to sell the sell the Department of Administration building at 101 E. Wilson St. seems like a sound idea.

After all, the 10-story building sits on prime real estate, with views of downtown and Lake Monona that rival those of the expensive condo and office complexes built on nearby parcels of real estate.

There are suggestions that the state government could reap as much as $20 million from the sale, and that's money that could surely be well spent.

But the arguments against selling the building are far stronger than those in favor of the move.


The DOA building houses 600 workers and is a hub of state government activity in downtown Madison - the traditional center of politics and policymaking in Wisconsin. So vital are the tasks of the employees who work in the building, and so necessary is their proximity to the Capitol and other government buildings downtown, that state officials assume that, after the sale, the state would lease the facility at substantial cost for a number of years.

This is where the sale idea gets shaky.

One of the reasons that downtown real estate has become valuable is the fact that the center of the isthmus is the home of state government. If we assume that state government will continue to be centered in downtown Madison, then selling off buildings that the state owns and initiating a long-term policy of leasing space there has the smell of a costly mistake.

City officials led by Mayor Dave Cieslewicz are, of course, salivating at the prospect of having another taxable property downtown. There has always been frustration with the fact that the state does not pay property taxes to the city.

But that's short-term thinking that does not take into account the importance of planning for the smart use of downtown space for a proper mix of residential, retail and employment purposes.

Hopefully, the State Building Commission, which Gov. Jim Doyle chairs and which must approve the sale, will take a longer view.

Before the DOA building is sold off for a quick buck, commission members should think seriously about whether this is the best move by a state government that says it is committed to keeping DOA workers downtown. They may find that there is a smart strategy for making the sale and keeping the workers downtown. But that strategy ought to be in place before the building is sold.


FairTaxes.com Question:

Why shouldn't the State pay property taxes to the local community for local schools? That would be fair. Then the State would be treated like other property owners who are not exempted from taxes. The State should either pay property taxes to local government for property it owns or rent space from someone who does.

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