Repair what it owns, tear it down and build a new one on the site or move.
A budget up to $3 million to study the options for JEA’s Downtown campus was approved Monday by the utility’s Finance and Audit Committee.
The structure — comprising the JEA Tower, the Customer Service Center and an adjacent parking garage — was built in the early 1960s as the Universal-Marion Building and Ivey’s department store.
The buildings were purchased from Charter Oil Co. by JEA in 1982. Based on 2014 property records, the three buildings on 1.88 acres along Church Street between Laura and Ocean streets are assessed at a combined $15.9 million.
Over the years, while the structures remained sound, the plumbing, electrical, fire detection and other building systems deteriorated to what is now a critical point, said Melissa Dykes, JEA chief financial officer.
All of the utility’s physical assets are evaluated annually. The progressive deterioration of the Downtown buildings has been noted, she said.
However, other capital projects, such as maintaining electric generation capacity, have been higher priorities than repairing pipes and wiring and replacing the HVAC system in JEA’s office building.
The three options under consideration are: repairing the systems in the existing buildings, at a cost previously estimated at more than $40 million; demolishing the structures and constructing replacements more suited to JEA’s current needs; or constructing a new building at another site.
If the building is renovated, it will be the first major repair project since it opened more than 50 years ago.
Dykes said one of the factors that is most critical is flooding in the basement of the tower, where the 41-year-old backup generator is located.
Key components of the building’s electrical system are in the basement. A storm surge or unusually heavy street flooding could cause the building to lose power for days if the electrical system were to be submerged.
The basement in the tower also represents a safety hazard because of its underground parking area with limited security in place, making the building a possible target for a bomb in a vehicle.
In addition, the plumbing is difficult to maintain. Dykes said when a drain must be cleared using mechanical means, the process often destroys the pipe due to the age and condition of the plumbing.
Another factor to be studied is which departments and how many staff should be located Downtown. Currently, more than 800 employees work in the tower and service center in electric and water systems operations, customer relationships, financial and technology services, human resources and public affairs.
Committee Chair Peter Bower said many years ago, Barnett Banks evaluated its Downtown presence and determined it would be more cost-effective to move the “back office” functions to suburban offices and retain the executive and some management operations in the urban core.
Dykes said JEA could operate with no loss of efficiency or customer service with fewer square feet of space whether the decision is made to renovate the current building or replace it.
The study will be conducted primarily by JEA staff. The utility also plans to issue a Request for Proposals seeking a consultant to assist with development of the plan, which is expected to take three to six months to complete.
The committee, however, wants to monitor the progress of the study and reserved the right to make its recommendation on which of the three options will be selected.
Committee member Robert Heekin said a conceptual report should be submitted before the project gets to the bid-ready phase.
Bower agreed.
“We want to see an analysis of the options in the interim,” he said.
The proposal for the study is scheduled to be presented for evaluation and action Aug. 18 to JEA’s board of directors.
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