ARC updated the plan with a specific focus to develop a strategic plan to colocate the Children, Youth and Families Department (CYFD) and the Human Services Department (HSD) in state-owned facilities in Albuquerque in a manner that reflects the long-range strategic plans for those agencies. The study addressed two main questions: (1) what are the characteristics of a consolidated CYFD and HSD facility (size and location), and (2) what are the benefits and costs of various available consolidation alternatives?
ARC’s study process analyzed the supply and demand characteristics of the Albuquerque area office marketplace and operations of CYFD and HSD. ARC considered three possible alternatives to implement a consolidated CYFD / HSD facility: continue to lease, maintaining the current lease arrangements, or locate in optimized space with better market rates.
The study found that all alternatives (other than to continue leasing at current rates) will provide long-term cost savings to the State. Acquiring a suitable existing building (purchase or lease-purchase) will provide the greatest long-term savings potential. Purchasing an existing facility is particularly attractive at this point in time. Relatively low purchase prices along with additional revenue-producing opportunities offset the need for renovations for cyclical renewal and tenant improvements.