Sonoma County buys Mendocino Avenue building with eye to future

A $4 million purchase of an office building next to the sprawling Sonoma County government and state courts complex in Santa Rosa highlights officials’ long-range plans for using every bit of 500 acres of county-owned property.

When the deal for the 20,000-square-foot building at 2755 Mendocino Ave. closes in mid-December, Sonoma County will own almost everything between Mendocino Avenue and Highway 101, from Administration Drive on the south to Russell Avenue on the north. That amounts to more than 80 acres, much of it undeveloped.

Already, the county and state courts administrators are deep in negotiations over the location of a new $240 million courthouse on the site of old jail, just north of the current courthouse. County officials are lobbying for it to be within the complex, although the Administrative Office of the Courts is keeping options open by also considering two other sites.

Meanwhile, Sonoma County officials are spending $800,000 to hire a consulting firm to recommend how to better use the 90 county-owned buildings and 2 million square feet of office space that it owns or leases.

“We use buildings that are outdated and overcrowded and in locations that make it difficult for programs to serve their clients because they are too scattered through the county,” said José Obregón, the county’s general services director who leads a steering committee spearheading a comprehensive county facilities plan.

Nothing, they say, is out of the question.

The plan likely will result in proposals for multistory structures such as those constructed recently in Orange County for government offices and in Los Angeles County for human services programs. Even San Francisco’s Ferry Building, with ground-floor retail and offices on upper floors, is being tossed about as possible model.

And, the plan may lead to county departments and nonprofit agencies taking over space in some of the eight veterans memorial buildings.

“How can we make our vets halls sustainable?” asked Supervisor Shirlee Zane, who said she wants that question answered in the consultant’s study.

A county Strategic Plan approved several years ago raised the issue of whether some veterans buildings should be sold or leased, which prompted significant pushback from community groups who rely on them.

Supervisors also are looking to the study for answers to other questions, including:

Will there be a market for the county to sell the administration complex, then lease back office space? That could allow private developers to do something with the desirable frontage on Mendocino Avenue. Other than the county fairgrounds, there is no comparable chunk of land in Santa Rosa.

If and when Sutter Health completes its hospital in the Mark West area, what is the best use of the Chanate Road campus? Because of the slim, serpentine nature of Chanate Road, a commercial or public facility usage is unlikely, but there will be much debate on what kind of a residential development the public will accept.

If land or buildings aren’t necessary to the county, what are options for sale and what are the alternatives if they are retained? Of the 2 million square feet of office space occupied by county government and court services, about 400,000 is leased from private owners because there is no empty space in buildings in the county complex.

“We have facilities scattered all over the place. There is not a lot of coordination on the use of our facilities,” said Supervisor Mike Kerns. “Those that we are not going to be using, should be leased out or sold to generate revenue.”

As county officials look to jettison some property, they acknowledge that acquisition of the 2755 Mendocino Ave. building seems contradictory. Except, they said, it is in a strategic location and was offered well below market value.

“Having cash sitting in the bank doesn’t make any sense when we can buy a building at less than we can put one up and save rent payments by moving county offices out of leased space,” said Mike Wagner, the county real estate manager.

Wagner said that two of the tenants, both dental specialists, will remain and the building will be occupied by several county programs including the Economic Development Board, the Sheriff’s Office domestic violence unit and the District Attorney’s victim witness program and its family justice center.

“The best time to plan is when real estate is down,” Wagner said.

The firm of M. Arthur Gensler Jr. and Associates, headquartered in San Francisco, was selected from five bidders for the county contract. The Gensler company performed master plans for Orange County facilities, Alameda County real estate, Los Angeles social services, San Bernardino County offices, the San Diego Civic Center and the state Department of Motor Vehicles facilities.

It is scheduled to deliver its recommendations in November 2011.