|This memorandum shall serve as an official notice of the Illinois Secretary of State’s intent to execute a new lease agreement with the current landlord, K & R Properties, Inc. This lease continuation has been deemed to be in the best interest of the State and considered exempt from purchasing rules in compliance with the Illinois Procurement Code.|
The Office of the Secretary of State previously leased Five Thousand One hundred (5,100) square feet of office space located at 3650 Winchester Road and Eight Thousand One Hundred Twenty (8,120) square feet of warehouse space at 3710 Winchester Road, for a total of Thirteen Thousand Two Hundred Twenty (13,220) square feet of property. These spaces housed the office space for the SOS Police District 3 Headquarters and the SOS Police vehicle inspection station and warehouse storage of equipment, supplies, and records. There are approximately 23 SOS Police employees working within both buildings. However, the current lease for 3650 & 3710 has been terminated effective October 31, 2017 and a new lease has been negotiated for 16,120 square feet of warehouse space located at 3710 Winchester Road for 11 employees within the SOS Police, Support Services Division.
In order to move these operations many aspects must be considered. First, the actual physical move of employees, equipment, furniture and supplies can be estimated at this time to cost $800,000. The cost to relocate the phone system would run approx. $35,000, computer cabling. A build to suit warehouse and offices for this department would cost in excess of $1,000,000 in addition to the base rent, taxes, utilities, etc. Various publications which include the current location would require reprinting which would also involve a sizeable cost to the Secretary of State.
The current services being provided are essential in the geographical area. A disruption in these services would cause a major disruption of state services. The costs that would be incurred in the event of a move would be prohibitive when weighted against maintaining the existing facility. Competitive bidding, selection, contract negotiation and build to suit and move of this magnitude would take 2 to 3 years and disrupt these services which would have a direct impact on the public and the services provided to them. The location is well known to the public. The premises are secure and provide ample parking. The location is ideal and costs per square foot are within reason and currently in line of the fair market value for rental space of this quality.
Therefore it is my recommendation that it is in the best interest of the State to continue the above mentioned lease.