Letter to Acting Director Zients, Office of Management and Budget

Letter

Today, U.S. Senator Charles E. Schumer called on the head of the Office of Management and Budget (OMB) to provide funding for the General Services Administration (GSA) so that the GSA can renovate the old Dillon Courthouse in Buffalo, preparing it to host new federal jobs. The Department of Homeland Security, the Office of the U.S. Trustee, the U.S. Tax Court, and the Buffalo Immigration Court have all expressed interested in moving into the courthouse, centralizing hundreds of jobs in downtown Buffalo. In order to secure these agencies as tenants, the GSA must make a series of upgrades to the building, and can only do so if the OMB decides to allocate the funding as a part of the coming year's GSA budget. Today, Schumer called on OMB to do just that, helping the Dillon Courthouse secure new federal tenants and ensuring that the building does not remain vacant for years on end.

"It's fantastic to see the new Federal Courthouse shining like a beacon in downtown Buffalo, but we can't let the old courthouse crumble into a vacant eyesore," said Schumer. "The Dillon Courthouse can still be a hub for jobs, but we need the GSA to act fast and make the necessary renovations that will turn the old building into a magnet for jobs. They can't do that unless they have the funds, so I'm strongly urging the OMB to step up to the plate and make sure we don't let this federal building fall into a state of disrepair. The faster we get the funding, the sooner we can fill up the Dillon Courthouse with good-paying jobs."

In his letter to OMB Acting Director Zients, Schumer noted that the building has recently undergone several upgrades that would be largely wasted if the building was left to sit dormant for several years due to lack of renovations. New elevators were installed three years ago, the roof was replaced in 2004, and just over a decade ago, a 150 kilowatt generator was installed. These improvements mean that the Dillon Courthouse is capable of hosting new federal jobs, but the building still needs several renovations to meet the needs of the perspective agencies.

In addition, Schumer points out that despite being constructed in 1936 the Dillon Courthouse remains a highly energy-efficient building and could therefore save taxpayers and tenants significant money. In 2009 the Dillon Courthouse was given an energy-efficiency rating higher than many modern buildings, a factor which would help lower rents charged to federal agencies below current market rates.

The GSA estimates that the necessary renovations will cost $23 million. The renovations include modifications and improvements that will ensure the space is suitable to the prospective tenants as well as some minor structural changes to the building including updates to the heating and cooling systems. Improving the HVAC and electrical systems, as well as restructuring the walls and creating new rooms to fit the needs of prospective tenants will help ensure the courthouse does not sit vacant for long.

Schumer's letter to the Office of Management and Budget appears below:

Dear Acting Director Zients,

I write to discuss the renovation and reuse of the Dillon Courthouse building in Buffalo, New York. To jump-start this project, I request that you quickly allocate funding to the General Services Administration for this project. With the successful completion of the new Federal Courthouse located in downtown Buffalo's Niagara Square, the GSA can now turn its attention to smartly re-using the Dillon Courthouse. I strongly believe that the speedy reuse of the Dillon Courthouse is the right move; I urge you to allocate the needed funding.

It is possible the Dillon Courthouse may sit unoccupied for several years now that the U.S. District Court for Western New York has moved. A federally-owned building that is sitting unused is wasteful and does a disservice to taxpayers. This is made even more pressing when one takes into account the numerous infrastructure upgrades that have been invested into the property with federal money. From new elevators installed just three years ago, to a new roof in 2004, to a 150 kilowatt generator installed just over a decade ago, it is clear that we cannot let a building that has received so many updates to just sit empty.

The Dillon Courthouse is located in a prime location in downtown Buffalo, making it the perfect building for federal agencies to relocate to. The building is within walking distance of Buffalo City Hall, the new Federal Courthouse, federal offices in the Niagara Center and the home of the government of Erie County, the Rath Building. Centralization of federal agencies in the downtown area certainly would result in greater efficiency and cooperation between the all levels of government.

There would also be financial benefits to this move. The Dillon Courthouse, due to its thick stone walls, is highly energy-efficient. In 2009, its energy usage was rated at just over 58,000 BTU per gross square foot. This is lower than many modern buildings, and is nothing short of astounding for a building constructed in 1936. Due to low energy costs and other factors, housing federal agencies here would cost below current market prices and would be a great money saver for taxpayers.

I am aware that the GSA already has prospective tenants for the Dillon Courthouse. These include the Department of Homeland Security, along with Office of the U.S. Trustee, United States Tax Court, and the Buffalo Immigration Court and others. I have been told that this amounts to an occupancy rate of around 90%. I am confident that other agencies can be found to fill that remaining 10%.

Three of these prospective tenants, Office of the U.S. Trustee, U.S. Tax Court, and the Immigration Court, can even make use of existing courtrooms. This greatly reduces the costs of refitting the building for new use and preserves the historic courtrooms that federal judges have presided over since 1936. I commend the GSA for the efforts that have resulted in a prospective tenant list that makes the best possible use of the existing building layout. This is common-sense management that results in real cost savings.

I have the utmost confidence that the GSA can turn the Dillon Courthouse into a secure and productive home for a multitude of federal agencies. It is good for Buffalo, good for government efficiency, and good for taxpayers. Simply put, it just makes sense. All that is needed is the "Okay" from the OMB to get the ball rolling. I look forward to working with you to get this project off the drawing board and putting it into action.

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