Spokane7
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August 16, 2011 in Business
Post office moving out of historic downtown building
The U.S. Post Office has decided it won’t move out of the downtown branch on Riverside Avenue and Lincoln Street in Spokane.
(Full-size photo)
The U.S. Postal Service plans to move out of its historic Riverside Avenue post office in downtown Spokane to cut costs, Spokane Postmaster Karen Fairlee said Monday.
“We’re just in the beginning of a two- or three-part process,” she said. “Like any other business that needs more money to keep operating, we need to show we’re able to cut costs.”
She said she doesn’t know where the office will relocate, but it will remain downtown. That move won’t occur until late spring 2012, or later, Fairlee said.
USPS administrators haven’t identified a short list of alternate downtown sites, she added. They’ll be looking for a location with parking and easy pedestrian access, Fairlee said.
The first phase of the move will be to eliminate postal carrier pickups at the downtown facility. About 26 carriers who handle 19 routes use the building, which is next to the federal courthouse. Fairlee said those carriers will be moved “before the snow flies” to the Liberty Park Post Office, 1602 E. Sprague Ave.
The building at the corner of Lincoln and Riverside has been downtown Spokane’s main post office for 102 years.
The postal service uses space on the first floor and a loading dock in the basement. Upstairs is the federal Bankruptcy Court and office space. In addition to the carriers, about 15 other postal service employees work in the branch.
One source of cost savings would be to reduce the number of post office boxes in a new space, Fairlee said. The old building has 1,600 boxes, including some that are substantial in size. Few people need large boxes, she said. At present the post office is renting just more than 1,000 of the boxes.
The postal service pays about $350,000 per year for a lease and support services to the General Services Administration. The GSA has said that lease is non-negotiable; the postal service has determined a less expensive option can be found somewhere nearby, Fairlee said.
GSA spokeswoman Stephanie Kenitzer said the GSA hasn’t been notified of the postal service’s plan.
Normally the GSA will lease that available space to another federal agency. But “as a last option” the GSA would lease to non-government companies or agencies, Kenitzer said.
The post office building recently had $2.3 million worth of upgrades funded by the 2009 stimulus act.
The postal agency has said it’s considering a number of steps to save money, including reducing delivery to five days per week and closing more than 3,000 branches nationwide.
The choice of ending Saturday delivery can only be approved by Congress, and so far no consensus has developed to take that step.
Among branches that could be closed to cut costs are the Parkwater, Hillyard and Dishman stations in Spokane.
Fairlee said it’s not a sure thing that those three offices will be closed. The USPS needs to look at how residents in those neighborhoods would be affected, she said.
Garco awarded $35.8 million Joint Base Lewis-McChord contract 
hunternomore on August 16 at 8:03 a.m.
So they took over $2 million in taxpayer money and now they’re bailing? Nice.
Brett on August 16 at 8:22 a.m.
@hunternomore, per the article, the US Bankruptcy Court occupies the upper floors, and I’m assuming they will continue to do so. The post office just occupies the bottom two floors, per the article. So the government is not just going to abandon $2 million in renovations….
Bruce (aka thatoneguy) on August 16 at 8:44 a.m.
Can’t help wondering if the GSA is going to regret making that lease “non-negotiable” when they have a giant space like that vacant for years & years.
spokanedan on August 16 at 9:03 a.m.
How much is the UPS going to spend remodeling the Liberty Park station so it can accomodate the 26 carriers and 19 routes that are going to be moved there. Talk about dumb and dumber!
DDC on August 16 at 9:47 a.m.
The 5th Congressional District received $657 million of the stimulus package…at least we now know what happened to $2.3 million of it.
ManleyPointer on August 16 at 10:17 a.m.
People, people, people, PLEASE do not make the mistake of assuming that our federal government makes decisions based on sound business principles, especially when it’s one federal agency dealing with another federal agency. It cracks me up that an archaic entity like the post office, running in the red for years and ONLY able to remain “functional” by massive infusions of taxpayer cash, refers to itself as being like “any other business.” Sure, “any other business” as long as the “other business” is Amtrak.
misjustice on August 16 at 10:40 a.m.
“Until adoption of the Postal Reorganization Act of 1970, the U.S. Postal Service functioned as a regular, tax-supported, agency of the federal government.
According to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even, not make a profit.
In 1982, U.S. postage stamps became “postal products,” rather than a form of taxation. Since then, The bulk of the cost of operating the postal system has been paid for by customers through the sale of “postal products” and services rather than taxes.”
continues….
http://usgovinfo.about.com/od/consumerawareness/a/uspsabout.htm
therailroader on August 16 at 10:48 a.m.
Reducing from 25,000 ft to 2000 ft (heard this last night on TV) obviously shows how much has changed and how little of this building space is now being used by the USPS. The Post Office is now becoming the old Pony Express ~ based on today’s technology, the Post Office needs to be either downsized and/or privitized as the need for it has significantly diminished. The reason why we still receive so much junk mail is because the Post Office cannot justify its present staffing formulas without it (and they are are largest lobbier for this junk mail to continue for it protects their own vested interests).
greenlibertarian on August 16 at 10:54 a.m.
Thanks MisJ for pointing out the ignorance regarding taxpayer subsidies for the post office.
They went away almost 30 years ago.
You’d think people would know this by now, but the prefer to comment based on utter ignorance.
ManleyPointer on August 16 at 11:36 a.m.
So not paying taxes is somehow NOT a form of taxpayer subsidy? And when I read the interesting link provided by misj, I am struck by the language:
“It is supposed to break even.” “Supposed to”?? That’s compelling.
“The bulk of the cost of operating the postal system has been paid for by customers through the sale of “postal products” and services rather than taxes.” The “bulk of the cost”? Really?
“Each class of mail is also expected to cover its share of the costs.” As my granny used to say, expect in one hand and poop in the other, and see which one fills up first.
“The USPS does get some taxpayer support.” Oh, it does? Hmm. Thought there was no taxpayer subsidy of the USPS.
“Still, the US Postal Service has averaged a profit of over $1 billion per year in each of the last five years.” Really, it has? What about this, then:
“The Postal Service, which reported a loss of $8.5 billion in its 2010 fiscal year, said in a regulatory filing last month its loss this year may expand to $9 billion as it reaches its $15 billion debt limit next month.” http://www.dailyherald.com/article/20110805/business/110809702/
How does a business post those kinds of losses and still keep operating? A $15 billion debt limit? To whom or what it it “indebted”?
Time to shut ‘er down.