By Alannah Allbrett
Paul Pippenger, of Valley
Enterprises has offered free rent for the period of a year to Idaho Department
of Health and Welfare (IDHW), for both the Orofino and McCall offices which have
been occupied for 14 and 10 years respectively. But, as of Thursday, April 22,
IDHW has respectfully declined the offer.
Pippenger said he would
continue to pay the property tax and insurance on the buildings. Health and
Welfare would need to take care of the utilities only.
Electricity, water, and janitorial
services for the 7,000 square foot Orofino office are approximately $18,000 per
year.
Dick Schultz, Assistant
Director, said that they were appreciative of the offer of free rent on the
buildings, but they were unable to accept. Richard Armstrong, IDHW Director, was
unavailable for comment.
Health and Welfare spokesman, Tom
Shanahan gave a figure of about $10,000 for running the telecommunications
services and said that in McCall it amounts to approximately $28,000. Shanahan
said, “In Orofino, we’ve figured out how to locate our remaining people at State
Hospital North, where we already have data connections and janitorial service.
There are no overhead costs. We’re aiming for the same thing in McCall.”
Of the 19 employees at the
Orofino office, four will be laid off. Six will remain in the area. Seven will
be reassigned to the
In McCall two of five
employees will remain in town. Two have been offered positions in
Both of the existing
buildings were custom made to IDHW’s specifications and built on speculation.
Pippenger said he had to tear down existing facilities as well as bid against
other contractors to build the facilities. At the time he secured loans for the
buildings, he and the lending institution were told that the minimum occupancy
by a state office was 23 years. “The state has a boilerplate lease,” said
Pippenger, “that allows them out of a lease if something in the state
legislature changes.” “They can give 90 days notice and be gone,” said Pippenger.”
“We have a large payment due in October for the facility in Orofino.”
Pippenger stated that he
contacted Roger Madsen, the Director of Idaho Department of Labor, who shares
the building in McCall with Health & Welfare. Madsen told him they had no
intention, at this time, of vacating the building. That facility was built with
a common room in the middle, which is shared by both offices. It is unknown what
will happen to the other side of the building when IDHW vacates.
Paul and Lee Pippenger feel
that Orofino has been good to them, and they hate to see local people laid off
and others transferred to
Pippenger receives no tax break for relinquishing rental monies and stated that the offer remains open for free rent. “If they are going to stay empty for a year, I’d rather keep them open to keep all those employees and clients in Orofino and McCall.”