MEDIA RESOURCE: Board of Equalization Headquarters Building

California BOE Headquarters building

The California State Board of Equalization (BOE) headquarters (HQ) at 450 N Street in downtown Sacramento was occupied in 1993 and is owned by the State and managed by the Department of General Services (DGS). In recent years, the building has had issues ranging from falling windows to corroded wastewater pipes and mold in HVAC ducts. The building was designed to hold a maximum capacity of 2,218 people. Currently there are approximately 1,900 employees in the building and about 750 more are spread among four other locations that are authorized to hold up to 779 positions (two in West Sacramento, one in Natomas, and one in downtown Sacramento).

How much has the state spent on building repairs and remediation at the BOE HQ to date?

  • $58.7 million (as of February 2014)
    • $15.5 million on window curtain wall repair.
    • $28 million on mold remediation.
    • $8.7 million on air quality monitoring since it began in 2004.
    • $3.7 million on infrastructure repairs.
    • $2.9 million on elevator improvements.
  • The BOE has also spent $2.3 million on employee claims of injury related to building issues.
Heavy mold growth in inacessible areas

How much will need to be spent on future repairs and remediation of the BOE HQ?

  • An estimated $115 million including:
    • $40 million for repairs and remediation
    • $75 million for other costs related to leasing, moving, and other costs related to temporarily relocating impacted employees

What is the chronology of window breakages at the BOE HQ?

View of the broken spandrel panel on the 9th floor
  • In September 1999, one spandrel panel broke on the 7th floor.
  • In August 2001, two spandrel panels broke between the 7th / 8th and 8th / 9th floors.
  • In January 2005, one spandrel panel broke between the 7th / 8th floors.
  • In September 2005, several spandrel panels broke between the 7th/ 8th and at the 10th floor.
  • In January 2012, one spandrel panel broke between the 8th / 9th floors.
  • In April 2012, five (vision) windows on the 18th floor were discovered to have cracks on the interior side of the dual glass panes and were replaced.

How much does the BOE pay for rent?

  • The BOE is a tenant and pays $17.2 million in rent each year to DGS.

How much does the state still owe on the BOE HQ building?

  • $77.1 million as of January 2014

Building Ownership and Occupancy Timeline:

  • Constructed by California Public Employees Retirement System (CalPERS) in 1991
  • Occupied by BOE in January 1993 under long-term lease/purchase agreement
  • Department of General Services (DGS) took over responsibility for all maintenance and repairs in April 1999
  • Settlement and Release Agreement signed by DGS and general contractor in May 2000
  • DGS initiated purchase of the building in November 2006

What is Assembly Bill (AB) 1656?

  • AB 1656 (Dickinson) requires DGS to review state controlled and owned buildings in the Sacramento region by July 1, 2015, and issue requests for proposals for new facilities for the top three buildings in most need of repair.
  • Governor Jerry Brown signed the bill into law on September 19, 2014.