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Lottery To Buy New Headquarters Building

The West Virginia Lottery Commission, in cooperation with the State of West Virginia, has approved plans to purchase City Center West as its new state headquarters, located at 900 Pennsylvania Ave. in Charleston, W.Va.

This acquisition will complete a 10-year effort to consolidate Lottery operations. West Virginia Lottery Director John Musgrave said the Lottery will purchase the nearly 150,000 square foot building and the adjacent 490-space parking garage for $21.5 million.

Since fiscal year 2006, money was set aside in preparation for the construction of a new Lottery headquarters. Musgrave said that the purchase is an excellent savings opportunity for the state, as City Center West represents the type of building the Lottery would have built at approximately half the projected cost of new construction.

With 10 businesses leasing approximately 45,000 square feet at the new location, the state anticipates a further reduction in the cost of doing business. “We will continue to honor existing lease agreements with current tenants,” Musgrave said.

The Lottery will utilize approximately 70,000 square feet of the more than 130,000 square feet of usable space in the building. As needs are identified and future tenant availability is determined, the available building space will be occupied by other state agencies, resulting in cost efficiencies. “We will be working closely with the Department of Administration on future occupancy plans,” he said.

The Lottery has completed a thorough examination of the building by mechanical, structural and electrical engineers, as well as its architects during the negotiations process. Chuck Lawrence, Executive Director of the West Virginia State Real Estate Division, confirmed that the building is in very sound condition.

Lawrence noted, “As with other state projects, we will make additional modifications to prepare the building for our use, including “green” enhancements to make the building more environmentally-friendly, which will help to reduce future costs associated with maintaining the building.”

The Lottery has leased space at its existing location at 312 MacCorkle Ave. S.E. in Charleston at a cost of approximately $415,000 per year. Musgrave said that the Lottery plans to complete its move into the new headquarters in early 2011.

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