Austin Energy may construct $67M office building on Riverside Drive
Apr 24, 2014
Austin Business Journal
Austin Energy is looking to cut costs by moving employees from leased space into a new office building on East Riverside Drive at Grove Boulevard
The building, budgeted at a total cost of $67 million, would put about 600 employees in an area of Austin not traditionally known for office space. When completed in 2017, the building would house a sizable portion of Austin Energy's 1,750 workers on utility-owned land east of I-35. The building would house offices, a call center and a walk-in customer service office
"One of the driving reasons to build a new building is that we've been spending money on leases," said Austin Energy spokesman Carlos Cordova. Officials at the utility had looked into buying existing buildings but didn't find any suitable options, he said
Current plans call for the site to be developed into a 180,000-square-foot building, a 600-space parking garage and surface parking for visitors. The municipally owned utility received the go-ahead to plan the office building in March 2013, and in May of that year City Council approved a design-build format for the project. On May 1, Austin Energy will request Council's approval to negotiate and award the initial services contract for the project with Austin-based Turner Construction Co.
If approved by Council and successfully negotiated with Austin Energy, Turner Construction would receive an up to $9.1 million contract for the design, cost estimating and other early services for the project. If unable to reach a deal with Turner Construction, staff will attempt to reach one with Hensel Phelps Construction Co.