Pennsylvania's Department of General Services is moving ahead with the sale of the State Office Building in downtown Pittsburgh to River Vue Associates of Canonsburg for $4.6 million. General Services Secretary James Creedon says by selling the building the state will avoid paying nearly $65 million in renovations to bring it up to current standards. Creedon says the state will save $14 million by selling the building and moving the 800 state employees into leased space in 3 buildings in downtown Pittsburgh.
"It will also help to generate continued growth for downtown Pittsburgh as well as put the property back on the tax rolls, providing an estimated half-million dollars in annual property taxes for local government and the school district."
Earlier, Auditor General Jack Wagner criticized the proposed deal calling it "a fire sale" and saying decentralizing state services by moving departments into 3 different locations would not be good for residents.
Secretary Creedon says the state employees will relocate starting this fall into the Offices at Piatt Place on Fifth Avenue; the Chamber of Commerce Building on Seventh Avenue; and, 11 Stanwix Street.
Creedon says the private development plans for a hotel and apartments and this will create spin-off jobs for the service industry.