State officials said Friday that 670 state employees at the State Office Building on McCallie Avenue will be moving to leased space on Riverfront Parkway and at Eastgate Mall.
UTC is seeking to expand to the vacated state property and plans to construct a new dormitory at the site.
Newly-leased building space for the state’s workforce in three major cities will result in significant savings and more efficient work environments for employees, state officials said. The Department of General Services (DGS) announced final approval for the next phase of the Master Plan, which will relocate workers into more functional workspaces in Memphis, Chattanooga and Nashville.
“Governor Haslam challenged the state to deliver the best possible service as efficiently as possible, and this is a key step in our overall plan to make work spaces more functional for employees and less of a liability for the state,” Commissioner Bob Oglesby said. “We want to create better work spaces that are operationally cost effective so we can focus our resources on the state’s priorities, such as education and jobs.”
Standards in the new leases will ensure that state employees have a modern, efficient, collaborative and productive working environment. Taking specific buildings out of service and relocating employees will result in significant savings to the state, primarily through the avoidance of capital cost and a reduction of building operational cost.
The Executive Subcommittee of the State Building Commission today approved the following leases:
Davidson County – 200 Athens Way, Nashville. This lease will provide office space for employees moving out of the Cordell Hull and Central Services Buildings. This leased facility will house approximately 300 employees, primarily from the Department of Children’s Services.
Hamilton County – 1301 Riverfront Parkway and 5600 Brainerd Road, Chattanooga. These leases will provide office space for approximately 670 employees moving out of the Chattanooga State Office Building and the James R. Mapp Building. These will house employees from several State agencies including the Department of Children’s Services, the Department of Human Services, and the Tennessee Department of Environment and Conservation.
Shelby County – One Commerce Square, 40 South Main Street, Memphis. This lease will provide office space for approximately 480 state employees moving out of the Donnelly J. Hill Building. This leased facility will house employees from several state agencies, including the Department of Children’s Services, the Department of Human Services and the Department of Revenue.
Net savings from decommissioning these buildings is currently projected to be between $64 million and $74 million ten years.
The Department of General Services facilitates the operation of state government in the areas of real estate management, procurement, motor vehicle and equipment management, postal services, warehousing, records management and similar services.