CSX Corp. continues to upgrade its Downtown headquarters and the tally so far is reaching $4 million.
The investment in approved construction projects alone at the 500 Water St. building total $2.7 million this year. The railroad company wants to put another $1.35 million into renovations of the first and second floors.
A building-permit application shows Auld & White Constructors LLC will do the work.
Spokesman Rob Doolittle said the renovations include the addition of a small concession space, a drop-off dry cleaner service and other enhancements to the first floor and upgrades to the kitchen equipment and layout of the cafeteria on the second floor.
The plans indicate the second-floor renovation will be separately permitted. However, the application states that the project cost is for the first and second floor interior renovations and that it covers 19,820 square feet, which was the space approved for demolition in September on both floors.
The largest project this year is the $2.3 million interior demolition and renovation of the 15th floor executive offices. That 20,450-square-foot project includes remodeling for offices, conference rooms, a recording studio, café, a warming kitchen and the C-suite.
That suite accommodates new CEO Hunter Harrison and two other top executives, plans show.
“These improvements are designed to modernize the facility and maximize its use as we accommodate additional employees in the headquarters building,” he said.
Doolittle said the company’s goal is to provide a better-quality work environment to help strengthen the organization “with collaborative spaces that create opportunities for improved communication, teamwork and efficiency.”
Work at the 15-story riverfront building is expected to be completed next year.
Some functions are being consolidated and additional employees are being assigned to the headquarters building, he said previously.
The company also is renovating its Southpoint data center.
The work indicates a commitment by the company, which changed leadership in March when Harrison joined.
“With these updates, CSX expects the headquarters building will accommodate our needs for the foreseeable future,” Doolittle said in a previous statement.
CSX has been cutting jobs this year in advance of and after Harrison’s arrival in March. He immediately launched operational changes to improve efficiency.
Chief Financial Officer Frank Lonegro said in a conference call this week with analysts that 3,000 full-time jobs were cut this year, 300 more than he said the month before had been cut.
He said another 500 jobs could be lost by the end of the year. Total employment was 24,388 in September.
Lonegro said that in addition to the 3,000 full-time jobs, 1,000 contractor positions have been cut.
CSX announced that third-quarter revenue was up 1 percent to $2.74 billion.
Harrison told analysts CSX has resolved its service issues and the organization is ready to move ahead at “breakneck speed.”