2004 INNOVATIONS AWARDS PROGRAMApplication Form

(INSTRUCTIONS: Please complete and submit this document electronically if possible, e.g. a Word document. The application form is available online at our web site, www.csg.org, in the Programs section.

Please determine the appropriate Program Category from the enclosed Program Categories sheet,and list the category under the Category section below on the right.)

ID #: 04-S-43MOCategory: Infrastructure and Economic Development

State: _Missouri________

1. Program Name: Locating State Facilities for Downtown Revitalization and Historic Preservation

2. Administering Agency: Office of Administration

3. Contact Person: Carl Greeson, Deputy Director, Division of Facilities Management

4. Address: Office of Administration, PO Box 809, Jefferson City MO 65102

5. Telephone Number: (573) 751-7835

6. FAX Number: (573) 526-9820

7. E-mail Address: Carl.Greeson@oa.mo.gov

8. Web site Address:

General Administrative Web Site:http://www.oa.mo.gov/fm/leasing/html%20docs/index.shtml

9. Please provide a two-sentence description of the program:

At the direction of Governor Bob Holden, the State of Missouri Office of Administration provides a preference in the state procurement of leases for locations in central business and revitalization areas and historic buildings. In order for the state to help communities retain stable downtown business districts in addition to protecting buildings of historic significance, leased facilities are to be located in central downtown districts and other revitalization areas designated by municipalities when appropriate for the services provided at the facility and when economically prudent.

10. How long has this program been operational:

Governor Holden’s Executive Order for this program was issued in December 2001.

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11. Why was the program created?

The state leases offices in every county of the state and in many cases those offices were being constructed away from community centers where efforts were needed to revitalize businesses and to protect historic buildings. Locating state offices away from downtowns contributed to outward expansion of cities, increased infrastructure requirements, and often was less convenient for the public. While efforts were in place in the Department of Economic Development to revitalize central business areas, the state was leasing buildings away from the community cores. Locating state offices in downtown and revitalization districts helps stabilize downtown business districts, enhances the economic and social vitality of communities, and coordinates state efforts for central business development. Historic properties were not regularly considered for use as state offices. Having the state lease portions of historic buildings provides another economic incentive for private sector restoration projects and provides consistency of actions with the Department of Natural Resources’ historic preservation program.

12. Describe the specific activities and operations of the program in chronological order.

When an executive branch agency has a facility lease requirement to be procured by the Office of Administration, Division of Facilities Management, a Request For Proposal is publicly issued to the private sector. Prospective bidders are made aware of the preference for downtown revitalization and historic preservation projects and are given contact information for assistance from the Department of Economic Development and the Department of Natural Resources.

The historic preference is given to bidders offering space in buildings which are listed on the National Register of Historic Places or which are a contributing element of a National Register Historic District or a certified local district. Preference is also given to bidders offering space in buildings that have been determined to be eligible for listing on the National Register of Historic Places by the State Historic Preservation Office in the MO Department of Natural Resources. Documentation is required verifying that the property proposed meets one of the historic criteria.

The central business district or other downtown revitalization district preference is given to bidders offering space in buildings which are located within specialized revitalization districts as designated by the local municipality. Documentation from local authorities is required verifying the proposal is located within one of the special improvement districts. Proposals can also be submitted seeking both historic and specialized district preferences.

During bid reviews by committee composed of tenant agency and Division of Facilities Management personnel, clarification can be obtained for any preference issues and the committee members visit proposed facilities or sites. In evaluation,

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extra points are assigned based upon the nature or status of the historic preference and existence of appropriate revitalization district documentation. In general, lease bids are awarded based lowest (75%) and best (25%) evaluation. The proposal with the lowest responsive base bid annual cost receives 75 points and all other offerings receive scores based on their relative costs. The proposals receive up to 25 points using subjective judgment to determine the best proposal. The preference point assignment for historic and downtown revitalization proposals is one of five specific subjective evaluation categories in which up to five points can be assigned for a total maximum of 25 points among all 5 categories. Thus, these potential 5 out of 25 points provides a scoring preference for downtown and historic revitalization projects. Because price is a factor for 75% of the scoring, the direct cost to the state is still a significant criterion for award. However, since special tax incentives exist for revitalization and historic preservation, these projects also can be competitive on price.

13. Why is the program a new and creative approach or method?

The program merges the economic development and historic preservation efforts of the national, state, and local communities together with the economic power of state leasing transactions to assist all levels of government in achieving their goals, including providing central, convenient locations for the delivery of state services to the public. The program combines local and state program interests as well as private sector and public economic interests. The program encourages public interest while preserving private sector competition. It is a positive program rather than a restrictive program for the achievement of both public and private sector interests. The program encourages cooperation between levels of government and between the public and private sectors.

14. What were the program’s start-up costs?

There were no start-up costs.

15. What are the program’s annual operational costs?

There are no additional operating costs.

16. How is the program funded?

No additional funding was necessary to implement this program.

17. Did this program require the passage of legislation, executive order or regulations?

Yes, Governor Holden issued Executive Order 1-22 on December 20, 2001 directing state buildings and facilities to be located in central downtowns or revitalized districts

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when consistent with public service requirements and with historic preservation efforts and when economically prudent. The Office of Administration was directed to establish policies and procedures, compatible with current statutes, to implement the order.

18. What equipment, technology and software are used to operate and administer this program?

No special equipment or technology was required.

19. To the best of your knowledge, did this program originate in your state? If YES, please indicate the innovator’s name, present address, telephone number and e-mail address.

Yes, see above contact information.

20. Are you aware of similar programs in other states? If YES, which ones and how does this program differ?

We know of no program quite like this at the time of its implementation. Other states may require downtown location, but not as part of an overall revitalization and historic preservation program tied to a competitive lease procurement process

21. Has the program been fully implemented? If NO, what actions remain to be taken?

The program has been fully implemented.

22. Briefly evaluate (pro and con) the program’s effectiveness in addressing the defined problem[s] or issue[s]. Provide tangible examples.

Four central community historic buildings have been awarded leases for state agencies. The communities range in population from 4,000 to 35,000. The properties provide a total of over 50,000 rentable square feet for state agencies with additional space for commercial leases. Three of those properties have been renovated and are occupied by state agencies. Those three were also the low bids, however it is unlikely these properties would have been the selected leased property without the Executive Order and this program. One historic property is under renovation and is scheduled for occupancy later this year. It was not the low bid but received sufficient scoring, including the preference points to receive the bid award. A fifth property bid with possible preference points is currently being evaluated for a large city.

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The movement of state employees into the downtown centers sustains and stimulates the addition and expansion of other small businesses there. In addition, each of these properties house not only state offices but other commercial activities. This mix provides further stabilization of downtown communities. Attached is a local newspaper article that reflects the economic impact of one of these projects at the historic Marquette Hotel in Cape Girardeau, Missouri. Small businesses are anticipating increased business activity as a direct result of this project that was conducted under this program. http://semissourian.com/story.html$rec=109833

The following are photographs of the projects.

23. How has the program grown and/or changed since its inception?

There have been improvements in the cooperation among state agencies assisting communities and the private sector in downtown revitalization and historic preservation.

24. What limitations or obstacles might other states expect to encounter if they attempt to adopt this program?

Tenant agencies sometimes have difficulty anticipating the quality of the office space they will receive after the renovations. Historic preservation projects can take longer to be available for occupancy than newly or recently built properties. Initially, developers may need special educational assistance to undertake revitalization and

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preservation projects. At the beginning of the program, existing state landlords can perceive the program to be a threat and it is important to reassure them that the state will not arbitrarily relocate all its offices to downtown locations. State program agencies need assurance that their program needs will also be reflected in the leasing process.

Add space as appropriate to this form. When complete, return to: CSG Innovations Awards 2004The Council of State Governments2760 Research Park Drive, P.O. Box 11910Lexington, KY 40578-1910innovations@csg.org

DEADLINE: All original applications must be received by April 20, 2004, to be considered for an Innovations Award for 2004.ApplicationForm04.doc

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