A plan approved by the Idaho Legislature in March to buy the Hewlett-Packard campus to house state agencies is slowly moving ahead.
“We are in the process of negotiating a purchase and sale agreement with HP, as well as the terms of their leaseback,” said Department of Administration Deputy Director Keith Reynolds. “A definite closing date has not yet been determined.”
The 197-acre HP campus includes eight buildings totaling 1.5 million square feet of office and warehouse space off Chinden Boulevard near Five Mile Road in West Boise.
Idaho plans to sell bonds to raise the $110 million it expects to pay for the campus. The Legislature approved an extra $16 million for renovations. HP will lease back about half of the 793,000 square feet of office space for a seven-year term.
Lease payments from HP, the other tenants and the state agencies that move in will be enough to pay off the bonds, state officials say.
The state plans to migrate agencies gradually to the campus from Boise offices that face expiring leases in the coming years, starting with those housed at the 24-acre Washington Group Plaza on the east side of Downtown.
The plaza is being sold to St. Luke’s Health System. “The deal is not yet closed,” said St. Luke’s spokeswoman Anita Kissee. “The timeline is fluid, but it’s still many more months out.”
About 500 state employees work at Washington Group Plaza for the Idaho State Tax Commission, the Department of Fish and Game and the Department of Finance.
The Tax Commission’s lease expired June 30, but the owner, SCCP Boise Limited Partnership, agreed to extend it for an additional year, Tax Commission spokeswoman Renee Eymann said.