Ttreasurer says rented space was bad deal for state

Posted at 1:10 p.m. on  April 5, 2017

The Brillion News

MADISON – Wisconsin State Treasurer Matt Adamczyk, who ran for office on the platform of eliminating the office, is now using his position to expose what he calls bad financial decisions by the state.

He said the state’s decision to rent about 200,000 feet of office space for the Department of Corrections headquarters in Madison will cost taxpayers $90 million in rent over 20 years by the time the lease on the privately-owned building ends in 2021.

In contrast, when the state Department of Revenue needed about the same amount of office space, it built a new building it owns. The building cost $30 million, plus about $15 million in interest because the construction was paid for by bonding.

“The DOC building will cost taxpayers about twice as much as the DOR building for similar square footage,” Adamczyk said. “What’s worse, at the end of the leave in 2021, the state will not own the DOC building and will need to either continue renting or build a new facility.”

Adamczek said it was a bad deal for taxpayers and will unveil more bad rental decision by the state in coming months.

“As one of three commissioners of the Board of Commissioners or Public Lands, I will be advocating that the BCPL start constructing state buildings to avoid bonding costs,” Adamczyk said.

That’s in addition to no longer renting large buildings for state agencies.