Mobile’s leadership is evaluating its leased space in Government Plaza, which holds City departments and offices.
Discussions have been underway since Mobile County Commissioner Randall Dueitt announced in a public meeting that the City had not been paying the rent and said when it had, it was late. Commissioners publicly discussed taking legal action if needed.
Mobile director of communications Jason Johnson told 1819 News the County had increased the rent by nearly 90%, so the City was looking at other options.
Mayor Spiro Cheriogotis directed the City’s finance department to pay the rent at the previous rate but said he would’ve appreciated a call before the public callout, as he had recently been elected mayor and had just assumed office.
While the City continues to negotiate new lease terms, Mobile chief of operations James Barber said a space analysis is underway to determine which spaces can be vacated. He said some departments may be moved out of Government Plaza, but a decision has not been made on where to relocate.
“It's being studied,” Barber said. “We are looking at other real estate options and so at the same time, we're negotiating with the county about a renewal.”
Barber said he believed the issue would be resolved within the first half of the year.
“I don't think it'll take that much longer,” he outlined. “It's just what we're doing is we're operating under the previous contract price until we can renegotiate a new contract price. We don't doubt that it probably deserves an increase. The mayor wants to do a square footage assessment and then as we reduce our footprint, it reduces the cost here and makes some of our departments more accessible to the public.”
The Mobile County Commission explained the increase is necessary. For the past five years, the County has not increased the lease amount. However, County officials said they can no longer subsidize the City’s lease at the current rate due to rising insurance and utility costs.
The City occupies 28% of the occupied office space, or 127,326 square feet. It costs the County $22.34 per square foot to operate. Under the most recent agreed-upon lease, the County charged $11.23 per square foot.
The City is not charged for common space, such as restrooms, shared meeting spaces, Government Plaza Auditorium where City Council meets, the Assembly Room and parking areas.
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every day or become a member to gain access to exclusive content and 1819 News merch.
