Rent%20assailed%20by%20Detroit,%20Wayne%20County

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Rent assailed by Detroit, Wayne County

• BY DAVID ASHENFELTER
• FREE PRESS STAFF WRITER

February 27, 2002
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Rent at Coleman A. Young Municipal Center

• Detroit and Wayne County officials are upset
  about the high rent they're paying for office
  space at the Coleman A. Young Municipal Center.
• Last year, the city and county paid 21.65 per
  square foot -- double what the county paid to
  lease the Wayne County Building and three times
  the average that other tenants are paying for
  several other Detroit office buildings. The
  figures are based on a study conducted by the
  Farbman Group Inc. of Southfield, which manages
  several office buildings in southeast Michigan.

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Farbman Study

• The Farbman study, completed last month, said it
  cost the city and county 21.65 per square foot
  for rent last year, compared with 10.40 for the
  Wayne County Building.
• The average rent for nine Detroit office
  buildings, including the Wayne County Building,
  was 7.06 per square foot, the report said.

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Building Authority Response

• William Polakowski, the authority's general
  manager, questioned the study, saying it
  significantly understates the leases charged by
  other office buildings.
• He also said it doesn't take into account the
  more than 1 million the authority rebated to the
  city and county in 1999 and 2000, resulting in
  lower lease rates each year, of 16.74 and 17.44
  per square foot.
• Polakowski said it costs more to operate the
  municipal center because more people use it than
  other downtown office buildings.

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Excess Rent?
City is Paying 21.65 per square foot at the Young Center
City is Paying 10.40 per square foot at the Wayne County Building
Average Rent for 9 Detroit Office Bldgs 7.06 per square foot
The study questioned the need for 54 full-time
building attendants double what would be
expected at other office buildings. It also
questioned the need for all of the supervisors,
electricians, carpenters, window cleaners,
painters and others.