The following was published in the June 19 edition of the Wall Street Journal.
LEASE AIMS AT BIG SAVINGS
By MAURA WEBBER SADOVI
Sometimes you have to spend money to save money.
That is what some federal government officials are saying as they move workers into a new $863.1 million manufacturing complex built using a rare lease deal with a private venture.
In the deal, the U.S. General Services Administration agreed to lease five buildings on a new 185-acre campus in Kansas City, Mo., for $61.5 million annually for the next 20 years.
The property will be used to make nonnuclear weapons parts for the National Nuclear Security Administration, which manages the U.S. nuclear-weapons program. It includes 1.2 million square feet of space where nonnuclear parts and components will be produced as well as 330,000 square feet of office space.
The buildings are owned by a venture of CenterPoint Properties Trust, an Oakbrook, Ill., firm controlled by the California Public Employees' Retirement System, and Zimmer Real Estate Services LC of Kansas City.
The GSA, which manages much of the government's real estate, sees the lease as a fiscally smart way to replace older, costly buildings.
Although the federal government owns the nuclear agency's current space, part of a nearby facility known as the Bannister Federal Complex, the nuclear agency said it will save about $100 million annually by moving about 2,500 workers and contractors into the new rental space.