The State Compensation Insurance Fund has thrown open the doors of its 255,000-square-foot “green” facility in Vacaville. The quasi-government workers’ comp insurer will house 750 employees in the new office space, complemented in the near future with a second phase of development.
According to Jennifer Vargen, spokeswoman for State Fund, the new building is not the result of downsizing but an opportunity to build from the ground up using environmentally friendly technologies and materials. The construction also allowed State Fund to close its leased space in neighboring Fairfield.
The office space comprises three separate buildings that State Fund will occupy 100%. Fairfield formerly housed a customer service center and some claims processing operations.
“We did pay for the building outright, and owned buildings become part of our asset portfolio,” Vargen says, adding that the Vacaville facility cost about $300 per square foot to build. The total cost is $77 million.
According to information from State Fund, construction reduced waste by using recycled building materials and diverted 75% of construction waste away from landfills. The new facility also incorporates environmentally friendly equipment, such as low-flow toilets, energy-efficient light fixtures and an energy-efficient HVAC system.
“We are looking for ways to reduce our carbon footprint. One thing that was kind of exciting is our sustainable design. We received a rebate of $500,000 for solar installation and a little over $500,000 for our sustainable design,” Vargen says.
In answer to questions about terms for payoff, Vargen says the payback period varies.
“Some items have a very short return on investment and others are longer term. Overall, the long-term gain will far outweigh the initial cost. State Fund’s real estate strategy is to build for our use and for a long-term hold…to fully leverage the benefits,” Vargen says.
According to the development agreement between State Fund and the city of Vacaville and the City of Vacaville Redevelopment Agency, the total amount of land is a little more than 32 acres. In 2006, the developer, the city of Vacaville, and State Fund drafted an agreement to begin construction of Class A office buildings in phases. The maximum square footage is 430,000. Phase 1 has just been completed with Phase 2 coming next and a Phase 3 if necessary. HOK Architects designed the buildings, and Devcon Construction Incorporated built them.
Vargen could not comment on specific plans for additional land or which green technologies would be used in construction.