The relocation and consolidation of hundreds of employees from seven departments of Wayne County, Mich., into the historic Guardian Building in downtown Detroit is a refreshing tale of smart government planning and clever financial management that will benefit taxpayers in the economically distressed region for years to come.
The Guardian Building was designed by Wirt C. Rowland, of Smith Hinchman and Grylls (now SmithGroup) and completed in 1929 as the Union Guardian Building. It combined Native American, Aztec, and Arts & Crafts influences in an inspiring display of Art Deco enthusiasm, with polychromed terra cotta on its exterior, travertine marble from Italy and Numidian marble from Africa on the walls and floors, Monel metal in the ornamental screen in the lobby, custom tiles by Mary Chase Stratton’s Pewabic Pottery, and sculpted architectural reliefs by Corrado Parducci—no wonder people called it “The Cathedral of Finance.” It has been designated a National Historic Landmark.
For two decades, the county had been paying $5.2 million a year in rent for space at 600 Randolph in Detroit—more than $100 million total. Seven years ago, as the lease was running out, the county purchased the Guardian Building (along with another building and a parking structure) for $14 million and bonded another $13.5 million for tenant improvements.
By 2008, with construction costs at favorable levels, the county bonded for another $30 million to change the project scope and accelerate the capital improvement schedule. The Building Team brought the project in at $33,261,000 in construction costs, $11,535,000 (25.7%) below budget.
The HVAC system was upgraded, improving indoor air quality and energy efficiency, and a distributed direct digital controls system was installed, along with video conferencing technology, flat screen monitors for public presentations, electronic faxing to reduce the use of paper, and Voice Over IP, which eliminated 3,500 land lines and will save $500,000 in phone costs.
Instead of shelling out $5.2 million a year at 600 Randolph, plus $1 million at another building, the annual operating costs for the county’s space in the Guardian Building is only $1.9 million. With payment of the debt service, taxpayers will come out $2 million ahead every year—and the county owns a historic building with an estimated current value of $60-100 million. BD+C
PROJECT SUMMARY
Building Team
Owner: Department of Economic Development, Wayne County, Mich.
Submitting firm: SmithGroup (architect, AOR, SE/MEP engineer)
Property manager: Sterling Group
Construction administrator: Hines
General contractor: Sachse Construction/Tooles Contracting Group JV
General Information
Area: 495,600 rentable sf
Construction Cost: $33,261,000
Construction time: September 2008 to December 2009
Delivery method: PM/GC
Related Stories
| May 14, 2014
Construction growth looking up: Gilbane Spring 2014 Economic Report
Construction spending for 2014 should finish 6.6% higher than in 2013, with nonresidential work contributing substantially.
| May 14, 2014
Prefab payback: Mortenson quantifies cost and schedule savings from prefabrication techniques
Value-based cost-benefit analysis of prefab approaches on the firm's 360-bed Exempla Saint Joseph Heritage Project shows significant savings for the Building Team.
| May 13, 2014
First look: Nadel's $1.5 billion Dalian, China, Sports Center
In addition to five major sports venues, the Dalian Sports Center includes a 30-story, 440-room, 5-star Kempinski full-service hotel and conference center and a 40,500-square-meter athletes’ training facility and office building.
| May 13, 2014
Drexel University case study report: Green Globes cheaper, faster than LEED
GBI’s Green Globes certification process is significantly less expensive to conduct and faster to complete than LEED certification, says Drexel prof.
| May 13, 2014
Steven Holl's sculptural Institute for Contemporary Art set to break ground at VCU
The facility will have two entrances—one facing the city of Richmond, Va., the other toward VCU's campus—to serve as a connection between "town and gown."
| May 13, 2014
Universities embrace creative finance strategies
After Moody’s and other credit ratings agencies tightened their standards a few years ago, universities had to become much more disciplined about their financing mechanisms.
| May 13, 2014
19 industry groups team to promote resilient planning and building materials
The industry associations, with more than 700,000 members generating almost $1 trillion in GDP, have issued a joint statement on resilience, pushing design and building solutions for disaster mitigation.
| May 13, 2014
Libeskind wins competition to design Canadian National Holocaust Monument
A design team featuring Daniel Libeskind and Gail Dexter-Lord has won a competition with its design for the Canadian National Holocaust Monument in Toronto. The monument is set to open in the autumn of 2015.
| May 12, 2014
Defining BIM – What do owners really want?
Given the complexities of the building process, it can be difficult for building owners to effectively communicate what they want and need with BIM. The response to the question usually is, “Give me everything.”
| May 12, 2014
The best of affordable housing: 4 projects honored with 2014 AIA/HUD Secretary Awards [slideshow]
The winners include two dramatic conversions of historic YMCA buildings into modern, affordable multifamily complexes.
