Monterey County, Salinas discuss alternatives to Capital One complex buy

The Capitol One complex in 2012. Monterey County is considering acquiring the property. (Vern Fisher/Monterey County Herald)

SALINAS >> As political pressure mounts, Monterey County and Salinas city officials have been engaged in talks over potential alternatives to acquiring the Capital One complex.

Rep. Sam Farr, D-Carmel, attended one of those meetings in an attempt to mediate.

County officials have argued the purchase of the Schilling Place complex off Abbott Street would help save money and increase efficiency by allowing the county to consolidate its operations by moving employees out of expensive leased space, including some in downtown Salinas, into a central complex. They said such a proposal would not cause them to move out of the County Government Center or abandon an agreement with the city to pursue a new downtown government campus.

But a local business and community group has argued a county purchase would deprive the city of prime commercial real estate capable of attracting another large private employer, lead to a glut of empty smaller office buildings in Salinas and harm the economy. The group has hired consultants to help study the impact of the county's proposal.

This week, the Board of Supervisors conducted two more closed-session discussions on the possible acquisition, including one during a special meeting on Thursday called solely for that purpose. The board is expected to make a decision as early as Aug. 26, following its summer break.

At the same time, according to county Resource Management Agency director Benny Young, county and city officials and staff have been engaged in ongoing talks regarding the county's interest in the Capital One complex, and even exchanged proposals for what he called a "fall-back plan" in case the purchase doesn't happen.

Young said Farr attended one of the meetings in an attempt to mediate the county-city talks, which he said have focused on the possible availability of vacant, city-controlled property downtown, though he declined to discuss specifics.

He did acknowledge the county may be interested in acquiring the Lombardo & Gilles building behind the existing county parking lot off West Alisal Street for use by the county Public Defender's office, but he said that would be true whether a Capital One purchase was completed or not.

Political pressure has been mounting on county officials on the prospective purchase, which has drawn organized opposition from a growing group of business and community interests calling itself Save Our Local Economy and led by Salinas Valley Chamber of Commerce CEO Paul Farmer.

In addition, Salinas Mayor Joe Gunter and other city officials have made it clear they have concerns about the county's move toward such a purchase, prompting the talks with county officials.

Farmer and others have spoken out regularly at Board of Supervisors meetings in the past few months, urging the board to slow its pursuit of the Capital One complex to allow time for a full "due diligence" assessment of both the costs and the benefits to the county, the city and the Salinas community of such a purchase.

Earlier this week, Farmer sent a letter to the supervisors on behalf of SOLE requesting that county officials release a report on their due diligence evaluation a week before any formal board consideration of a purchase, and called for the board to schedule a meeting he said was offered to allow SOLE and its consultants to make their case. He also asked that the county's own economic development committee set a meeting to consider the issue ahead of a final board decision.

Young said the county is still working on due diligence, but he added that SOLE's requests are all "options" for the supervisors to consider.

Jim Johnson can be reached at 753-6753.

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