Milwaukie on track to collect over $1M in rent from credit union
Milwaukie will collect more than $1 million in rent from Advantis Credit Union after buying Advantis' building for $6.5 million in June 2020.
Advantis' property is slated for use as a City Hall but Milwaukie officials have leased it back to the credit union since purchasing it.
Advantis has been paying Milwaukie $42,000 a month in rent since selling the building to the city, and it's expected to move out by the end of the year after paying Milwaukie about $1.26 million. Advantis had originally agreed to vacate the building after less than two years of lease-back payments, but Milwaukie officials granted the credit union a six-month extension at the same rental rate.
How those rent funds will be used will be determined through the ongoing budgeting process, city officials said.
Located two blocks north of the current City Hall on Main Street, the Advantis building needs renovations for use as a public facility, Milwaukie officials say. City councilors envision their chambers and other public-facing operations on the third floor of the Advantis building, which will get a renovated entrance and stairs in the new design of the building.
In March, Milwaukie officials announced they had changed course from the originally proposed use by an owner's representative, architect and construction management general contractor. Instead, city staff plan to proceed with a traditional design-bid-build contracting process, which they believe will be the most efficient model for a project of this size. Staff will focus on finding a firm that specializes in space utilization and interior renovations.
City officials say their current building, constructed in 1938, is too small and would be more expensive to renovate and expand.
Both city and Advantis administrative employees currently are split between various office locations. Milwaukie officials hope to acquire the Advantis building to provide a good location to consolidate City Hall employees with planning/building permit employees currently located on Johnson Creek Boulevard, by the time Advantis building renovations are completed in September 2023.
Advantis has administrative office locations in Milwaukie, Clackamas and Southeast Portland, and the credit union acquired land for building a new corporate campus in Oregon City. Advantis broke ground on constructing its new OC headquarters in June 2021, with an expected completion date by the end of this year.
Advantis board members had agreed that a new corporate campus will allow the credit union to work more efficiently in one location. Electra Central Credit Union and PACE Employees' Credit Union merged to become Advantis Credit Union on Oct. 1, 2005. Its building was completed in 2003 in downtown Milwaukie and has hosted the majority of Advantis administrative employees over the years.
Milwaukie incurred debt to acquire the Advantis property and for a $500,000 estimated renovation budget.
No plans have been put in place yet as to the future of the current City Hall. North Clackamas School District's predecessor district, when it sold the City Hall site to the city in 1937, placed a restriction on the deed that part of the property be maintained as a park.
On March 3, 2020, the City Council appointed 12 members to the City Hall Blue Ribbon Committee to learn about the current City Hall site, opportunities and constraints for future uses, and help define community goals for the future of the site.
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