Staff Recommends Purchase to Improve Access to City Services and Reduce Long-Term Costs
OCTOBER 16, 2026
The Dubuque City Council will consider a recommendation from City staff to purchase the former Dubuque Bank and Trust building at 1398 Central Ave. as part of an effort to consolidate City department offices into one municipal services campus. Relocation of departments will better serve residents and customers and reduce operating expenses. The recommendation is part of the agenda for the Oct. 19 regular meeting of the city council.
City staff have spent several years evaluating facility needs, customer access, office space requirements, and opportunities to improve service delivery. Several current facilities present significant challenges, including high ongoing maintenance costs, pending capital project needs, inefficient department locations, and limitations in their ability to support modern service delivery demands.
UMB Bank, which owns the property, has accepted the City’s offer to purchase the property for $1.82 million, pending City Council approval. This significantly lower purchase price from the original asking price of $4.2 million makes this a timely opportunity for the City. In addition to the building and parking lot at 1398 Central Ave., the purchase would include four parking lots with a total of 148 parking spaces. Making these lots available for public use would help address some of the parking needs related to the Central Ave. and White St. Corridor Initiative. They would also provide convenient access for residents and customers visiting City offices and services located at the 1398 Central Ave. property, nearby non-profit organizations and businesses, and support the development of housing in the area. At an estimated replacement/construction cost of $15,000 per surface parking space, these spaces represent approximately $2.2 million in avoided future parking acquisition/construction costs.
The proposed purchase of 1398 Central Ave. would allow multiple City departments and services to be located in a central facility, providing residents with a convenient location to access a variety of City services. The proposal would also reduce the number of buildings the City owns, operates, and maintains. Consolidating office space is expected to improve operational efficiency, increase cross-departmental interactions, reduce building maintenance and lease expenses, and make greater use of existing City facilities and resources.
The property at 1398 Central Ave. represents a rare opportunity because of its excellent condition, accessible design, ample parking, and close proximity to City Hall and the Ruby Sutton Building (Multicultural Family Center). Residents would spend less time traveling between offices, find it easier to access the services they need, and benefit from improved coordination among City departments. At the same time, centralizing these functions would strengthen the City’s downtown presence while making better use of public assets.
If approved, City staff would develop a phased plan to consolidate the majority of City office functions into City Hall on W. 13th St. and the 1398 Central Ave. property. The plan could allow the City to sell some existing facilities and discontinue some leased office spaces over time. Properties that could be sold as part of the proposed plan include the City Hall Annex at 1300 Main St. and Engine House No. 1 at 1805 Central Ave. Leased city office spaces at 7900 Chavenelle Rd. and 300 Main St. would be vacated. Additionally, the City intends to sell the Historic Federal Building at 350 W. Sixth St., as City offices are removed from the building.
Operational facilities such as the airport, fire stations, police department, public works facilities, library, transportation services, water department, and the Water and Resource Recovery Center would not be affected by the proposal.
If the purchase is approved, the City would consolidate most customer-facing operations into three separate buildings: City Hall at 50 W. 13th St., the Ruby Sutton Building at 1157 Central Ave., and the former DB&T bank building at 1398 Central Ave. The parks and recreation department would move downtown from their current offices at Bunker Hill Golf Course. The housing and community development department would move from the Historic Federal Building, the city attorney’s office would move from 300 Main St., the finance department and information technology department would move from the Bright Minds Campus at 7900 Chavenelle Rd. (though the city data center would remain at that location), and the economic development department and the health services department would move from the City Hall Annex Building at 1300 Main St.
The purchase cost for 1398 Central Ave. would be $1.82 million. Information technology and security infrastructure needed to operate the facility are estimated to be $931,000. Necessary remodeling, furniture, and fixture costs for the facility are estimated to be $400,000. Design fees, moving costs, and a 5% contingency allowance are estimated to be approximately $300,000. These needs bring the total cost to purchase and occupy 1398 Central Ave. to $3.4 million. The annual savings of the facilities consolidation plan is estimated to be $760,000, providing a payback on the investment in less than three years.
City staff have identified $4.2 million in funding for the proposal. After acquisition of 1398 Central Ave., it is the City’s intent to sell the Historic Federal Building, meaning the City would not need to spend approximately $6 million in Greater Downtown TIF funds that are currently in the City budget to replace the HVAC system at the Historic Federal Building. These funds will be used to cover the $3.4 million in costs to acquire and renovate 1398 Central Ave. Some of the approximately $2.2 million in surplus funds for the project are expected to be needed for renovations and improvements to City Hall after final departmental locations and occupancy plans are determined.
If the city council approves the proposal, the City will have a 90-day due diligence period to conduct additional inspections of the building before a final purchase agreement could be signed. Complete details on the proposal are part of the Oct. 19 city council meeting agenda, including:
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