State Selects Project Manager to Proceed with Sale of the Thompson Center

State Selects Project Manager to Proceed with Sale of the Thompson Center

Governor JB Pritzker recently announced that the State of Illinois has taken an important step forward in selling the James R. Thompson Center. After a competitive RFP process to select a project manager, the State will enter into exclusive negotiations with Ernst & Young Infrastructure Advisors, LLC (EY) to provide an array of project management and technical expertise to generate the best value from the sale for taxpayers.

The EY team also includes Bauer Latoza Studio (a Minority Business Enterprise), Goodman Williams Group (a Women Business Enterprise), and Mayer Brown, LLP.

Community outreach and inclusive procurement practices will be key focus areas throughout the disposition process.

“After years of neglect, the Thompson Center has outlived its useful life in its current state, requiring $17 million a year just to operate – and it’s time to generate value for the taxpayers from selling the building,” said Governor JB Pritzker. “The Department of Central Management Services is working diligently to move forward with the sale and relocate employees to a more efficient work environment.”

Over the last six months, CMS has been working to identify a firm ideally suited to assist the State with the sale of the property. In August 2019, CMS issued a Request for Proposals to identify highly qualified teams with the requisite experience, capacity and capabilities to work with the State and ultimately deliver the goals of the project.

The RFP evaluation process determined that the EY team was the most qualified, and they will be responsible for the following:

• helping CMS sell the Thompson Center;

• assisting with relocation options to an alternate site(s);

• possibly negotiating the State’s ownership at an alternate site;

• assessing the State’s Chicago real estate portfolio for consolidation options;

• providing project management services including financial and real estate analysis; and

• providing other services related to the sale of the property.

“This important step builds on Governor Pritzker’s commitment to sell the Thompson Center with maximum benefit to Illinois taxpayers,” said Acting Director of CMS Janel L. Forde. “The disposition of the property will help build a more efficient State government that better serves all of our residents.”

Opened in 1985, the JRTC encompasses approximately 1.2 million square feet of enclosed area. The main building enclosure system is glazed with single-pane, non-thermally broken aluminum frames which is energy inefficient and does not meet current standards for performance or thermal comfort.

Because of prolonged deferred maintenance and delayed capital projects, in 2016, the construction cost was estimated to be over $325 million to bring the building into a good state of repair.

The facility is also larger than necessary and costly to operate with annual operating expenses exceeding $17 million. By divesting of the oversized, outdated and expensive facility, the State can relocate its core services to appropriate replacement spaces. According to a news release, the strategic relocation effort will reduce operating costs, increase productivity and better serve constituents.

In April, Governor Pritzker signed into law Senate Bill 886, which dictates the process for the sale of the property.

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