Kansas Department for Aging and Disability Services signs new downtown lease

WICHITA — Another state agency has signed a lease at 266 N. Main St., which is known as the former Ryan International Airlines building, and this will be the final one because the building is now full.

“The building represented the chance to put some agencies together under one roof,” says Mark McGivern, director of the Office of Facilities and Procurement Management within the state Department of Administration.

“It made sense from our end.”

The Kansas Department for Aging and Disability Services will join the Kansas Corporation Commission, the Kansas Department of Labor and the state Board of Indigents’ Defense Services.

The Department on Aging has a 10-year lease for 5,666 square feet on the second floor. It’s slated to move in the first of September.

Currently, the department is in the Finney State Office Building at 230 E. William.

In June, Have You Heard? reported that nine state agencies, including more than 700 employees, will leave the city-owned building when the state’s lease expires on Sept. 30.

“The Wichita office market was quite attractive,” McGivern says.

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Kansas Corporation Commission signs lease at former Ryan building

072413ryanUPDATED — There’s another new lease at the former Ryan International Airlines building at 266 N. Main St., and it happens to be another state agency.

“We’re slowly filling it up with state leases,” says Craig Simon of Landmark Commercial Real Estate, who handled the lease.

“The most recent one that got signed and approved was the Kansas Corporation Commission,” Simon says.

The commission is taking 17,267 square feet on the second floor.

Currently, the commission is in the Finney State Office Building at 230 E. William.

In June, Have You Heard? reported that nine state agencies, including more than 700 employees, will leave the city-owned building when the state’s lease expires on Sept. 30, 2014.

The Kansas Department of Labor, which is temporarily in the Finney building, signed a lease for the former Ryan building in September.

The state Board of Indigents’ Defense Services, which has been at 150 N. Main, signed a lease in the former Ryan building in October.

“There’s one more,” Simon says of state agency leases, “and we’re waiting to get the lease signed.”

That likely will be in the next week or two, he says.

“And then the entire building will be full once that’s complete.”

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Three state agencies close to signing new downtown leases despite city’s objections

The former Ryan International Airlines building.

UPDATED — Three state agencies, including two that currently are in the Finney State Office Building, are close to finalizing leases for the former Ryan International Airlines building at 266 N. Main.

The Joint Committee on State Building Construction will consider leases for the Kansas Corporation Commission and the Kansas Human Rights Commission next month and the state Board of Indigents’ Defense Services on Wednesday.

“To my great surprise and chagrin, this committee has no authority to stop this process other than the bully pulpit,” says state Rep. Jim Ward, D-Wichita, a new member of the committee. “We can raise questions about the appropriateness of the move … and hopefully shame them into doing the right thing.”

Ward says the reasons the state has offered for why nine agencies need to leave the Finney building, a city-owned property at 230 E. William, “don’t seem to hold water compared to the bid given by the city.”

He’s referring to a new lease rate the city is offering to the state to keep the Department for Children and Families at the Finney building. DCF has more than 550 of the 700 state employees at the building.

According to a Sept. 9 letter Mayor Carl Brewer sent to Gov. Sam Brownback, the city would slash DCF’s lease rate from $11 a square foot to $6 a square foot for half the space it currently has. The reduced space is at DCF’s request, according to the letter. The city also offered to make a $6 million investment in improvements in the building.

“It is my hope, as mayor of Wichita, that the valuable relationship between the City and State can be preserved by a responsible business decision allowing the continued use of the Finney State Office Building as a centralized location for state agencies,” Brewer wrote.

Chuck Knapp, spokesman for the state Department of Administration, says it’s a “foregone conclusion” that DCF and the Kansas Corporation Commission will be leaving, because the Finney building does not meet their needs.

“Someone could offer you a cardboard box for free, and if it didn’t meet your housing needs, you … wouldn’t accept it,” Knapp says. “I’m certainly not saying the Finney building is a cardboard box. … Price isn’t necessarily the determining factor in the deal.”

In his letter, Brewer referenced a July meeting he had with Brownback after which a new conversation started with DCF about how the city could meet the department’s needs.

“However, despite our best efforts, we encountered obstacles that prevented a full evaluation of our counterproposal,” he wrote.

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Kansas Department of Labor to move to former Ryan International Airlines building

WICHITA — The Kansas Department of Labor, which is temporarily located at the Finney State Office Building, has signed a lease at the former Ryan International Airlines building at 266 N. Main St.

“They looked at several buildings,” says Chuck Knapp, Department of Administration spokesman. “Labor decided that that building best met their needs.”

The 10-year lease, which has two renewal options of five years each, is for 9,113 square feet.

Level 3 Communications and Hubris Communications are already at the building. Level 3 is downsizing its space, and that’s what the Department of Labor is taking.

Knapp says the department had been in another downtown building but was having some issues, so it made a quick move to the Finney building.

Craig Simon of Landmark Commercial Real Estate handled the deal for the Main Street lease, which begins Nov. 1.

Simon also recently handled the sale of that building when Tom Schmeidler of SBA Construction, his brothers and another investor purchased the property out of foreclosure.

More news is coming about the building soon.

There’s also news coming about another departure from the Finney building.

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Former Ryan International Airlines and Southwestern Bell building sells downtown

WICHITA — It’s not every day that a bunker sells downtown, but that’s what Craig Simon says happened today.

The former Ryan International Airlines building at 266 N. Main St., which was built for Southwestern Bell in the late 1960s, sold.

“It’s a very unique building,” says Simon, a broker with Landmark Commercial Real Estate who handled the sale. “It’s like a bunker.”

The approximately 54,000-square-foot building has 14-inch walls and can withstand 200-mile-an-hour winds. Though it’s only two stories, it is built to hold six.

“If there’s a storm, there’s no breakage in coverage,” Simon says.

He says it’s a data company’s dream, and there are two such companies – Level 3 Communications and Hubris Communications – in there now.

A contractor and some other investors are the ones who bought it, though.

Tom Schmeidler of SBA Construction, his brothers and another investor purchased the property out of foreclosure.

“It has potential to become a very, very good building again,” Schmeidler says. “It’s in the best part of downtown that you could hope for for an office building.”

When Rubloff Jet Express purchased Ryan in 2004, it acquired the building.

“They’re not usually in the business of buying office buildings,” Simon says.

Rubloff hired Simon about two years ago to help lease the building. Simon says he was close to signing the Department of Defense and the Small Business Administration last summer when Rubloff, which owns a number of shopping centers, encountered financial difficulties.

“They were struggling with a lot of properties,” Simon says.

Though the building had gone into receivership and Simon wasn’t able to lease to new tenants, he was able to help sell the building.

Complicating the deal was an IRB that Ryan had through the city. It was set to expire next year. The city still had a deed on the building as collateral but agreed to retire the IRB early.

Simon will continue handling leasing at the building, and Landmark will manage it as well.

“There’s a lot of interest right now,” Simon says of about four serious prospects.

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