In split vote, county commissioners firm to review purchase of Crossroads Center office building
The Courthouse Square office building can be seen in the foreground opposite the Crossroads Center building in Washington in this file photo.
Barbara S. Miller/Observer-Reporter
The Crossroads Center office building is shown in the July file photo.
In a 2-1 vote Thursday morning, the Washington County commissioners voted to enter into a $90,000 agreement with a commercial real estate firm to advise them on the financial feasibility of acquiring the Crossroads Center office building at West Beau and North Franklin streets.
The Crossroads Center, once known as the LandAmerica building for its main tenant, a title insurer, is across West Beau Street from the county’s Courthouse Square office building where commissioners’ meetings have been convened for decades. When the Great Recession of 2008-09 hit, LandAmerica left.
Commission Chairwoman Diana Irey Vaughan and Commissioner Nick Sherman, citing the expense of repairing the parking garage that serves as the foundation of the Courthouse Square office building, voted in favor of the review.
Irey Vaughan said the lowest bid to repair Courthouse Square was $10.3 million.
“After seeing the extraordinary costs to repair our building, we had an appraisal done. That value came back at $3.9 million. As good stewards for the taxpayers, there is no way I could justify spending $10 million to fix a parking garage that holds just over 300 cars on a building that is only worth $4 million.
“That is a terrible investment for the county.”
A property condition assessment prepared in March and April by Dawood engineers, planners and surveyors pointed out multiple problems with Courthouse Square.
If the county goes through with the Crossroads Center purchase, Irey Vaughan said she expects a decision to be made within the next three months. If there is no buyer for Courthouse Square, she said it would be demolished.
The $90,000 fee to JLL commercial real estate is to be paid only if the county buys the Crossroads Center.
Sherman likened the agreement with JLL to a transaction one would enter into with a local real estate agent to buy a house.
“They’ll provide a market overview, valuation assessment and, if the time comes, negotiate with the seller” and check into a proposed acquisition to ensure it is in good condition.
Courthouse Square is also home to Washington County’s 911 emergency call center and Public Safety Department, plus a myriad of county government and elected officials’ offices such as the county treasurer, recorder of deeds, sheriff, controller and coroner.
A major tenant of the Crossroads Center is the Social Security office, and both Sherman and Irey Vaughan said they would want other governmental entities that assist county government to remain there. Private entities could remain until their leases expire.
The commissioners in favor of entering into an agreement with JLL to advise them about the Crossroads building did not mention a purchase price.
When asked after the commissioners’ meeting what it would cost, Irey-Vaughan, referring to JLL, said, “That’s what this will be about.”
Chief of Staff John Haynes said JLL is “just going to look for us and see if it’s possible and what the price is and if it’s even worthwhile doing for us. And if it’s not, we all part ways and no money will be exchanged.”
The chairman said, “Both Jack and Lucas Piatt in prior years have come to the board of commissioners offering leasing space at discounted rates and also made known to us they would consider selling that building.”
Asked about the agreement with JLL that appeared as the top item on Thursday’s agenda, Irey-Vaughan said, “I made Mr. Piatt aware of that yesterday.”
According to Washington County online property records, the value of 95 W. Beau St. is $10.6 million.
Commission Vice Chairman Larry Maggi voted against the agreement with JLL. He later said he had just found out about the matter yesterday.
“We’re in the middle of a pandemic right now, and we’re talking about spending millions of dollars?” he said in an interview after the commissioners adjourned their meeting. He said employees successfully worked remotely as social distancing was required.
A closed agenda-setting session on real estate acquisition was held after the public meeting Wednesday. Maggi questioned the $10 million cost of repairs at Courthouse Square and also said he would have preferred that a local real estate firm had been chosen.
JLL has a Pittsburgh location, but it lists Chicago as its headquarters for the Americas and Atlanta, Ga., as its main office. The firm offers property and facilities management, brokerage and project development.
Maggi also said the sale of the Crossroads Center to the county would remove it from county, city and school district tax rolls.
“The school district will take a big hit,” said Maggi, the sole Democrat on a Republican-majority board of commissioners.
Courthouse Square opened about 40 years ago to relieve overcrowding in the courthouse and to bring under one roof various agencies that were scattered around downtown Washington.