NJSBA Board Charts New Course for Headquarters Project

NJSBA Board Charts New Course for Headquarters Project

NJSBA will retain its current Trenton headquarters, which will undergo a complete renovation. The decision to renovate, made by the Board of Directors last month, will result in significant savings over a previous plan to construct a new conference center/office building outside of the state capital. The renovation will not require borrowing and will ensure that project costs do not affect future dues. Board approval of the renovation project was based on the recommendations of the 12-member ad hoc Facilities Committee, appointed by NJSBA President Harry J. Delgado in November. “The committee took on the difficult task of realigning the Association’s facility needs to meet changing political and financial forces,” said Delgado. “Their work will result in a renovated headquarters that reflects our members’ resources, includes the technological infrastructure needed to provide services, and is free from the burdensome maintenance costs found in older buildings.” Shifting Focus The board’s action represents a major shift in direction begun a year ago when it placed a moratorium on an earlier plan for a conference center/headquarters. That 50,000 square-foot building was to be built on Association-owned property approximately three miles from the New Jersey Turnpike, in Hamilton Township. The board approved its construction in May 2007, based on the premise—valid at that time—of developing an easily accessible training facility to host NJSBA statewide programs. Recent state regulations, however, diminish the opportunity for board members to travel for in-service programs. In addition, the Accountability Act emphasizes regional and Web-based training over statewide meetings, further reducing the need for an NJSBA conference center. The severe recession and a major shift in the commercial real estate market also factored into the committee’s study. Without the need for a statewide conference center, the panel was able to give high priority to NJSBA maintaining a physical presence in the state capital. The existing headquarters, located at 413 W. State St., Trenton, is less than three blocks from the State House. Four Times Less Costly In arriving at its recommendation, the facilities committee compared the costs of constructing a building in Hamilton, purchasing and upgrading existing properties in Trenton, and renovating the existing headquarters. The net cost of a complete renovation was three times lower than that of purchasing an existing structure in Trenton and four times less than constructing a down-sized building without a conference center on the Association-owned property in Hamilton. The renovation project would involve reconstruction of the 46-year-old headquarters’ interior and upgrading the exterior features. The changes would enable the building to obtain an energy-efficiency rating from the federal government, which would reduce utility fees and operating costs. The total cost of renovation is estimated at $4.6 million. Estimated revenue from the sale of the Hamilton Township property, at $2.1 million, would result in a net cost of $2.5 million for the project. The project will be funded entirely by a capital reserve account, originally intended for the construction of the conference center/headquarters. Study Online NJSBA has posted online the Report of the ad hoc Facilities Committee. Committee members included Raymond Wiss, chairman, Northern Valley Regional Board of Education; Elizabeth Ames, Franklin Township, Warren County; Kim Law-Jackson, Burlington City; Michael E. Stargell, Pennsauken; Robert Iannacone, Galloway Township; Everett Jennings, East Orange; and Patrick D. McGuinness, Alexandria Township. Also on the committee were NJSBA President Delgado and vice presidents John Bulina (finance), Peter J. Calvo (county activities) and Eva M. Nagy (legislation/resolutions), as well as Immediate Past President Kevin E. Ciak. Walt Meyer, director of association and business development, was chief staff member to the committee.

Copyright © 2009 New Jersey School Boards Association. All rights reserved.