Looks Like The Department Of Economic Security Should Stay Out Of The Real Estate Business. By Dave Devine EVERYONE FROM PRESIDENT Bill on down is telling the poor to get off welfare and go find a job. So isn't it heartwarming to know that one state agency is looking out for the less fortunate, even if only in a small way? It might simply be a matter of more convenient parking, and it will cost the taxpayers a lot of money, but at least something is being done for the needy. For the last nine years, the state's Department of Economic Security's downtown office for food stamp distribution and child care administration has been located at 55 N. Sixth Ave. This is a three-story, elevator-equipped building across the street from the Ronstadt Transit Center. Reserved parking is one block away and a metered lot is next door. The state pays $11 for each of the 17,000 square feet it rents in the building. But several months ago, D.E.S. started looking at other downtown locations for the office. The lease was expiring on the current site and the Phoenix staff of the agency, which handles all property deals, thought it might be able to improve the office's situation. According to Pat Curtis, who works in the D.E.S. Phoenix office, to determine alternatives to the present location the agency reviewed listings sent to them by real estate brokers. They also did a windshield survey of the downtown area. Based on that analysis, they contacted brokers, asked for written offers, and then made a selection. That process differs substantially from how the City of Tucson usually leases property. John Updike, of the city's Real Estate Division, says his office develops written criteria for space, defines an area in which it's looking, and then sends out a "Request for Proposals" to brokers. Once the city receives formal responses, they're reviewed by a committee, which determines what property to lease. Updike said he didn't know if this way of doing business saves the taxpayers money. But the city does it, he said, to ensure no attractive piece of property is overlooked. In addition to turning up a bargain-priced location, the open and competitive "Request for Proposals" method has the advantage of allowing for more accountability. Having everything in writing, from desired site criteria to proposed rental costs, eliminates many questions raised by the drive-by site selection process. Ah, well... The D.E.S. approach to finding property resulted in the agency deciding to move the food stamp office to a vacant, one-story warehouse at 139 N. Scott Ave., a block away from the current location. Curtis listed one advantage of the new site--more flexibility for future building layout and office configuration. Another plus, she said, is that the structure can be made to fully comply with the requirements of the Americans with Disabilities Act. But a primary consideration in the decision, which Curtis emphasized several times, was the availability of a parking lot adjacent to the new site. This type of parking is rare downtown, but apparently D.E.S. wanted it in this case, and was willing to pay a premium for it. Neither Curtis nor the real estate representative for the property would disclose how much the lease will cost. But The Weekly has been told D.E.S. will pay $15.50 for each of the 18,000 square feet it will rent. Thus, lease payments for the office will increase by more than $90,000 a year. The new site should be ready by July, after the building has received the major improvements which will be needed before D.E.S. can occupy the space. According to one downtown real estate expert, D.E.S. is paying more than it should. He said first-class space in the area can be obtained for between $13 and $14 a square foot. Even room in the prestigious Bank of America building, he noted, rents for $17.85 or less a square foot. He questioned why D.E.S. would pay $15.50 for the warehouse location. Curtis insists the rental amount, which she wouldn't reveal since the lease has yet to be finalized, is in line with what's paid in downtown Tucson and Phoenix. Of course, this isn't Phoenix. Besides, without going through an open and competitive bidding process for downtown Tucson properties, how would she know? We asked Gov. J. Fife Symington III's office to comment on the lack of competitive bidding in this case. Obviously the amount of money at issue is relatively small for the state government. But when multiplied out to include all of the buildings D.E.S. leases statewide, the difference wouldn't be pocket change. The Governor's office did not respond to our questions on this matter. So the staff and clients of downtown's food stamp office will be able to park right next to their destination after the move is made. Doesn't it just make you all warm and fuzzy inside, even if it's costing you, the taxpayer, almost six figures more a year?

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