The silvery, rectangular Anthony J. Celebrezze Federal Building in Downtown Cleveland is seen just to the left of center. One federal tenant, the Drug Enforcement Administration, left it years ago for the silver chisel of One Cleveland Center at right where it is expanding (NEOtrans). CLICK IMAGES TO ENLARGE THEM.
DEA expansion may be model for future
NEOtrans has learned that, not only does the Trump Administration intend to close the Anthony J. Celebrezze (AJC) Federal Building in Downtown Cleveland, the agency responsible for federal real estate has reportedly suspended building renovations in-progress. That also means federal taxpayers may have to eat millions of dollars paid for the unfinished work.
A source who spoke to NEOtrans on the condition of anonymity said general contractor Whiting-Turner was notified by the General Services Administration of its intent to cancel renovations already underway at the AJC building, 1240 E. 9th St.
The source, backed up by two other federal employees who work at the building, said there are construction materials left on the property both inside the building and outside. And there is incomplete work visible inside the building including in public areas.
Some of the worst working conditions are apparently at the Veterans Benefits Administration’s office which the source described as “rough.” And, unfortunately, there will be no one to complete the work, let alone remove construction materials, the source explained.
The 32-story Anthony J. Celebrezze Federal Building stands in the foreground with the silver chisel One Cleveland Center directly behind it in this aerial view looking southeasterly from above Lakeside Avenue at East 9th Street (Google).
“Union workers were let go,” the source said, adding that Whiting-Turner’s renovation contract reportedly was for $31 million. The federal government may still have to pay millions of dollars of that amount with nothing to show for it.
Tanya Schusler, GSA’s regional public affairs officer for the Great Lakes region, was contacted multiple times by NEOtrans for comment, clarification or a confirmation since April 8.
“I checked in with my folks yesterday and am waiting to hear back from them,” she wrote in an e-mail to NEOtrans April 15 — the last time she responded. “Hopefully this gets done today. Fingers crossed.”
NEOtrans also reached out to Whiting-Turner Senior Vice President Phil Kerber at the Maryland-based company’s Cleveland office for more information but has not yet heard back from him either. No liens or civil court actions have been filed in Cuyahoga County in the past year by Whiting-Turner against the GSA, public records show.
Looking east on Lakeside Avenue, the 1.2-million-square-foot federal building dominates the scene. At left is Cleveland City Hall (Google).
On March 31, NEOtrans broke the story that the GSA intends to close the 1.2-million-square-foot AJC and relocate its 4,000 employees from among 30 agencies to newly leased spaces in existing, privately owned buildings mostly in Downtown Cleveland. Schusler circulated a general statement from the GSA regarding the closure of the AJC building.
“This initiative aims to engage the market, attract interested parties, and inform strategies that will expedite the disposition of federal assets, consistent with all applicable laws,” the written statement noted. “GSA is beginning the disposition process for the Anthony J. Celebrezze Federal Building, and more details will be forthcoming.”
The federal government is reportedly willing to eat the cost of suspended renovations at AJC and pay millions of dollars in leases per year because it could be cheaper than paying a $175 million backlog of building repairs at AJC, a figured cited by the GSA as motivation for the building’s closure.
The GSA also announced its intention to bring back to the office federal employees who have been working remotely since the pandemic in 2020. But that may be offset by federal budget cuts and layoffs. Cleveland Mayor Justin Bibb expressed concern over the closure of the 32-story AJC, which was built in 1966 and renovated for $121 million in 2016.
In 2016, a new glassy exterior was added to the federal building for $121 million. It was constructed over many years to provide protection from an Oklahoma City-style terrorist bombing and to improve the building’s energy efficiency (NEOtrans).
“The U.S. General Services Administration (GSA) is taking action to meet President Donald J. Trump’s direction to right-size the federal real estate portfolio, cut costs for American taxpayers and optimize the space agencies need to achieve their missions,” the GSA said in a statement that was circulated nationwide in other cities facing building closures.
Shusler also noted that GSA will soon be leasing more space for the Drug Enforcement Administration, which used to be at AJC, but is now on the sixth and seventh floors at One Cleveland Center, 1375 E. 9th. There, the GSA intends to spend $1.8 million to renovate 20,690 square feet of space.
“A succeeding lease was awarded to the incumbent (landlord),” Shusler said. “A new lease is expected to be effective by late summer 2025.”
She said DEA currently has 18,176 rentable square feet of space at One Cleveland Center for its current local office staff of 103 people. But, under the new lease, the DEA’s space will expand to 22,454 RSF to accommodate additional but as yet unidentified future employment.
Along Lake Shore Boulevard and Interstate 90, several miles east of Downtown Cleveland, is a Cold War anti-aircraft missile base that may be under consideration for the relocation of federal offices. Gordon Park is at extreme right (Google).
Barely more than half of the AJC is occupied, or 665,000 square feet of office space. After it is vacated in three years, the building will be closed and likely offered to local and state governments first at a deep discount, if not for free, per federal law. If there are no takers, then it would go to a public sale offering by the GSA.
“There’s a three-year runway for this,” said a spokesperson for Congresswoman Shontel Brown (D-11) who opposes the sudden move.. “Normally this is a 10-year process.”
The spokesperson said the GSA will put out requests for proposals and look at office lease opportunities, with a focus on properties in Downtown Cleveland.
There are rumors that suburban sites are being kicked around, too, including the former Cold War anti-aircraft Nike missile launcher site, still owned by the federal government in the 8800 block of Lake Shore Boulevard in Bratenahl, just east of Gordon Park. Another is the underutilized Plain Dealer printing plant, 4800 Tiedeman Rd. in Brooklyn, another source said.
A 2009 rendering of the Anthony J. Celebrezze Federal Building in Downtown Cleveland, showing the then-proposed $121 million renovation of the office tower so that it could be more energy efficient and secure (GSA).
“While they seem committed to keeping the (federal) workforce and services downtown, this merits some skepticism given the backdrop of DOGE (Elon Musk’s Department of Government Efficiency),” Brown’s spokesperson said.
“We are very concerned that this ultimately could lead to a reduction of the federal workforce in Cleveland and the services provided to people,” Brown’s spokesperson added. “The odds of this penciling out to the benefit of the taxpayer seems pretty low.”
GSA said it remains committed to solving the long-term problems that exist in its federal portfolio of assets. Decades of funding deficiencies have resulted in many of the assets in the federal portfolio becoming functionally obsolete and unsuitable for use by the federal workforce.
“GSA will consider assets for divestment from government ownership in an orderly fashion to ensure taxpayers no longer pay for empty and underutilized federal office space, or the significant maintenance costs associated with long-term building ownership — potentially saving more than $430 million in annual operating costs,” a GSA statement read.
END
