Deal to Buy State Building Changes, Moves Forward



The deal for the city of Memphis to buy the Donnelly J. Hill State Office Building at 170 North Main has changed, making it maybe more likely that it will go forward.

Donnelly J. Hill Office Building
  • Donnelly J. Hill Office Building
The original deal was a swap. The state would give the city the 44-year-old building in exchange for the use of 400 parking spaces at the Peabody Place garage for 15 years. The parking spots were valued at around $2.2 million for the term.

The new deal would have the city buy the 12-story office building outright for $2.2 million. The state has worked out a new, separate parking deal for spots in the MLG&W garage on Main Street at a rate of about $25 per space, according to Memphis Housing and Community Development director Robert Lipscomb.

The Memphis Police Department would be a major tenant in the state building, Lipscomb said, moving the department from its current home at the Shelby County Criminal Justice Complex at 201 Poplar.

“It seems like they would be very happy with the space and it should improve morale and efficiencies,” Lipscomb said.

Also, Lipscomb said updated surveys show the city should save $8 million over the first 15 years of buying the building. The city nows pays rent for office space all over Memphis. Cutting those leases would generate the savings.

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