I was going through old notes this morning, and found some scribbling I'd done about the old vacant Kmart on North Carson Street, sitting next to a printout of the Meridian Report on the feasibility of the state office portion of the Nugget Project.
It was like one of those old commercials for Reese's Peanut Butter Cups, where the chocolate and the peanut butter collide to make something pretty cool.
The Meridian Report detailed how consolidating three state agencies — Health & Human Services, Gaming Control Board and Public Utilities Commission — could produce enough savings to justify paying for brand new class A office space in the Nugget Project. Now, there were some really obvious problems with this report's conclusions that we pointed out, and this portion of the project is dead for now.
But the report is correct that there are cost savings to be had by consolidating space leased by these agencies, particularly Health & Human Services. This agency is spread out in 16 different offices all over the city.
I bet I know where this agency could pick up a building for cheap that can probably house all of their offices in one space: The old Kmart. I'm sure it's not a new idea, just like somebody else probably figured out that chocolate and peanut butter taste good together before Reese's came along.
This building is 178,000 square feet, which is smaller than the 255,000 square feet HHS is leasing right now. But remembering how cavernous that old Kmart building is, I bet you could add square footage by putting a second level of offices around the inside perimeter of the building. They could also slim down by not needing so much space for things like conference rooms that can be shared. And, it looks like there is even more open lease space within walking distance, so square footage really isn't a problem.
While remaking downtown Carson City is a laudable goal, the north side of town is definitely an area in greater need of help. That old Kmart is a very visible scar on the city's economic outlook.
It's not that there hasn't been activity in this area. The Carson-Tahoe Regional Healthcare campus has attracted a large chunk of the medical care providers to this area. There are two new hotels as well. Western Nevada College is also a draw to this area.
What doesn't seem to work on the north side is big-box shopping. The bigger retailers have opted to build in south Carson City, more centrally located to attract business from Carson Valley and Lake Tahoe. While it would be nice to pull in a major retailer to the north side, it just doesn't seem to be in the cards.
But locating all those employees from HHS into that space could touch off a small retail resurgence. Those employees need places to eat, get coffee, buy gas, and do some light shopping. Once you get those going, that can attract other businesses to the area to take advantage of the new activity.
It certainly couldn't hurt.
Success oftentimes is born from past failures. Relocating state agencies to the Nugget Project may not make sense, but maybe they were onto something that can help the state save money and revitalize a part of our city that needs it. Hate to see the work done on this report go to waste.
What say you?