With funding secured and negotiations complete, the City of Springfield revealed the new home of the Missouri Job Center, pending approval from the Springfield City Council.
The proposed purchase would move the city’s workforce development offices from leased space at 2900 E. Sunshine St. to city-owned property on North Boonville Avenue near Commercial Street.
The proposed relocation is controversial. Less than a month after announcing the move, the city government was removed as the Ozark Region Workforce Development Board’s fiscal agent in wake of communication issues between the municipality and workforce board. Officers of the workforce board were reportedly irked by the short notice they received of the planned move.
The workforce board and Council of Local Elected Officials, or CLEO, oversee Workforce Innovation and Opportunity Act (WIOA) funding for programs administered by the Springfield Department of Workforce Development at the Missouri Job Center.
The Planning and Zoning Commission recommended approval of the proposed acquisition in a special meeting on June 20. The City Council is slated to vote on the purchase on July 8.
Former Convoy of Hope property at Boonville and Pacific
With the City Council’s approval, the city plans to close on the property at 1660 and 1661 N. Boonville Ave. for the agreed-upon purchase price of $3,693,975, nearly $250,000 less than the recently appraised value of $3,975,000.
The property, totaling about 2.4 acres between both addresses, includes a three story building with 51,320 square feet and two parking lots. The building was constructed in 1962, and recently housed Convoy of Hope offices. The property owner is Burning Tree Consulting, LLC, according to Greene County Assessor's Office records. Burning Tree Consulting is registered to real estate developer Titus Williams, Missouri Secretary of State's Office records show.
In addition to the acquisition cost, which includes furnishings, the city government plans to spend $2.6 million on improvements to the property, including roof repairs, HVAC replacement, ADA improvements and other upgrades.
The acquisition and renovation is being funded with $4.4 million in budget carryover funds, and $1.9 million in bonds that were folded into a $26 million bond package approved earlier this month.
The bonds will be repaid through rental revenues from the building’s tenants. In addition to the city’s Department of Workforce Development, which is being consolidated with the Department of Economic Vitality, the facility will be leased to partner agencies and other municipal functions.
While uncertain how long renovations will take, city employees could move offices into the building as soon as the fourth quarter of 2024, according to city spokesperson Cora Scott.
Advocates for the North Boonville property deal believe it could help eliminate employment barriers and improve workforce development services due to its central location and proximity to bus stops and the City Governmental Plaza.
Commissioner concerned over city’s relationship with workforce board
Though he supported the project and ultimately voted in favor of the property acquisition, Planning and Zoning Commissioner Bruce Colony expressed concern that the proposed relocation didn’t have buy-in from the workforce board.
“Are we purchasing something for an intended use for which our partner agencies do not really want to go along [with], and in doing so, is that truly in concert with the comprehensive plan?” Colony asked.
Amanda Ohlensehlen, Springfield Director of Economic Vitality, emphasized that programs funded through the workforce board were only one component of the city’s workforce development services, and that the city was working to restore its relationship with the board.
Colony suggested delaying the purchase to “get everybody on board” with the Missouri Job Center relocation, but with a closing date of July 10 and a short window to fulfill procedural requirements, Ohlensehlen stressed the need for the commission’s recommendation.
“The potential is that if that date is not met, that the deal could fall through,” Ohlensehlen said.
Workforce board to consider recommending CLEO retain city as fiscal agent
While the workforce board has yet to endorse the city’s relocation of the Missouri Job Center, and the long-term relationship between the board and city remains unclear, the board appears willing to retain the city as fiscal agent — at least for the near-term.
As fiscal agent, the Springfield Finance Department manages grant funds provided by the U.S. Department of Labor from WIOA. Under separate agreements, the city also administers workforce programs and one-stop operator services in partnership with the board, which serves a seven-county region out of the Missouri Job Center.
On June 20, the Ozark Region Workforce Development Board Priority Task Force Committee recommended that the full board consider retaining the city as fiscal agent until after the completion of a study exploring operational efficiencies and best practices, which is estimated to take six months. The decision to extend the city’s fiscal agency ultimately rests with the CLEO.
Prior to the city’s removal as fiscal agent on June 7, city officials offered their fiscal services at no cost for a year, and at a reduced cost in subsequent years in order to allow the board to hire an executive director, who could serve as the liaison between the board and city and improve communication between the two entities.
While the offer — which was provided the board and CLEO minutes before the June 7 meeting — did not dissuade the CLEO from removing the city as fiscal agent, board members commended the proposal at the June 20 meeting, and expressed a openness to consider maintaining the board's relationship with the city beyond the study’s completion.
“I just think that there's more discussion. This is a proposal and as such I feel like it should be negotiated,” incoming workforce board chair Andrea Sitzes said. “I see this as a conversation starter.”
The workforce board will consider the committee’s recommendation on June 26.
