The state Department of Labor, in a bid to cut costs, could consolidate much of its administrative staff into a nearly vacant building on Piedmont Avenue.
The staff consolidation could be a boon for downtown and help contain agency costs in a time of state budget austerity, officials said.
The building, 250 Piedmont, is being bought by a new developer who plans to renovate the high-rise adjacent the Hilton Atlanta hotel. The Atlanta Development Authority is assisting the deal, facilitating a long-term lease with the state. The building formerly housed some operations for SunTrust Banks.
Sam Hall, a labor department spokesman, said the agency is “very much in the exploratory stages right now," but a lease has not been signed. He said a centralized location "could amount to substantial savings."
The Atlanta Business Chronicle reported the labor department could consolidate 500 employees from around the metro area into the 20-story tower, which is near the agency’s headquarters buildings on Andrew Young International Boulevard and Courtland Street.
Hall declined to comment on the number of employees that could be moved, which offices could be affected and how much savings is expected.. The labor department has 11 other administrative offices in metro Atlanta, not including seven career centers, he said.
The agency’s budget has shrunk from $486 million in fiscal year 2008 to $414 in fiscal year 2012. State funds in that time have dropped from $55 million to $37 million.
On Thursday, the ADA passed a resolution to negotiate a long-term lease with Monolith Development LLC, a subsidiary of developer Forum Municipal Development Services, and to negotiate a sublease with the labor department.
State agencies cannot sign leases with terms of longer than one year, and the arrangement with the ADA helps the developer secure bank financing for the purchase and building refurbishments, said Bill Cronin, ADA vice president for economic development.
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