What will St. Joseph County do with its downtown building if South Bend moves out?

SOUTH BEND — The city of South Bend occupies about 26% of the downtown County-City Building – the top three floors and half of the fourth floor – so what happens if the city vacates its share of the 14-story high rise to buy the current South Bend Community School Corp. headquarters?

That scenario is on the table, after the school board voted Monday to pursue selling its administration building, 215 Dr. Martin Luther King Blvd., and the city expressed interest in buying the building in an announcement the same day.

City officials believe the purchase could be a good deal because it would give the city more space, consolidate its offices under one roof and make them more accessible to the public, while also saving money on operating costs, said Caleb Bauer, a spokesman for Mayor James Mueller.

Expenditures: Here's where the next $10 million in St. Joseph County COVID relief money could go

At the same time, the move would cost St. Joseph County a chunk of money that goes toward operating expenses, such as maintenance and utilities, and would leave county leaders to figure out how the vacated space fits into their own plans.

In the County-City Building, the city has just over 31,500 square feet of usable office space – not including main hallways, utility rooms and bathrooms – Bauer said. City officials expect that amount would increase to more than 44,000 square feet of usable space if it were to buy the school district headquarters.

Bauer said the added space would allow the city to also leave the municipal water utility building at Main Street and Colfax Avenue.

This year, the city budgeted $610,000 on operating expenses at the County-City Building, and it pays another $58,000 each year to rent the utilities offices.

Bauer said the city projects annual operating costs of about $373,000 at the school administration building, providing just under $300,000 in savings compared with this year’s budget.

The school corporation is seeking $2.8 million for the administration building. Bauer said he could not confirm any specific price the city intends to pay, but he added the city could cover the purchase with cash reserves.

The sale would still have to go through several steps, starting with certification by the Indiana attorney general.

Bauer said the school district building could come with other benefits, such as an attached parking garage, that would make it easier for members of the public to visit city offices.

In juvenile justice: South Bend student accused of stabbing classmate over THC vape to stay in detention

At the same time, the move would affect the county’s bottom line and potential office reorganizations of its own.

The county, which owns the County-City Building, would no longer get the operating costs the city has contributed every year under an agreement that, according to deputy county auditor John Murphy, dates to the 1960s.

At the same time, county officials may have to shuffle their plans to move or expand some department offices, such as the county health department and the department of infrastructure, planning and growth.

County Commissioners President Andy Kostielney said Mueller notified him a few months ago that the city was exploring a move.

More: Proposals could give South Bend one of the largest indoor farming campuses in the Midwest

“The sooner they knew, the better, because we were looking at space issues of our own,” Kostielney said. “We’re looking at maybe moving some departments across the street. If they were going to be leaving, then I would say that will significantly impact our plans.”

County officials have been considering moving the health or infrastructure department, or both, into the building shared by the city and county building departments at 125 S. Lafayette Blvd.

If the city moves out, it could make more sense to move more county departments back into the County-City Building, rather than moving departments to satellite offices, Kostielney said.

He said the county may also be able to recoup some of the city’s lost operating contributions by opening up more space to other organizations, such as the Michiana Area Council of Governments.

Officials have had early discussions about those ideas, but the talks are likely to ramp up with the city and school corporation moving closer to a sale.

“I was surprised,” Kostielney said, “that it’s moved this far along.”

This article originally appeared on South Bend Tribune: South Bend leaving County-City Building could impact St. Joseph County