UN CAPITAL MASTER PLAN: POSSIBILITY OF BUILDING A

UNCLAS USUN NEW YORK 001191

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E.O. 12958: N/A
TAGS: AORC KUNR UNGA
SUBJECT: UN CAPITAL MASTER PLAN: POSSIBILITY OF BUILDING A
PERMANENT BUILDING

REF: USUN 911


1. SUMMARY: As requested in resolution 60/256, the
Secretary-General has prepared a report providing a business

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analysis on the possibility of constructing a new permanent
building on the North Lawn. The report states that there is
a cost advantage in the long-term to constructing a building
to consolidate UN offices, but recommends that the issue be
considered independently from the Capital Master Plan (CMP),
given the urgency of the renovation requirements. END
SUMMARY.


2. The report provides an analysis of three scenarios:
continuing to lease space in UNDC-1, UNDC-2 and other
buildings; occupying a building on the North Lawn in 2015
(the earliest a building could realistically be ready); and
occupying a building on the North Lawn in 2023 (when current
favorable lease agreements expire for UNDC-1 and UNDC-2).
The break-even points for the second and third scenarios are
similar on both a nominal (14.2 vs. 14.0 years) and net
present value basis (21.1 vs. 21.3 years using a 5 percent
discount rate). Continuing to lease current office space is
the most expensive option on both a nominal and net present
value basis. The analysis assumes that the new building
would not/not be used as swing space for the Capital Master
Plan and is therefore different than the idea presented in
A/60/550, where the Secretary-General explored building a new
building on the North Lawn that would serve as swing space
during the construction phase of the CMP and as a
consolidation building thereafter.


3. The Secretary-General notes that there are further
factors that should be considered in a more comprehensive
feasibility study that have not been included in the current
business analysis. These factors include security advantages
or disadvantages, architectural issues, and Host City and
Community issues. The Secretary-General states that the cost
of a comprehensive feasibility study is approximately one
percent of the cost of construction and would take at least
one year to complete. The estimated cost of construction for
a building ready for occupancy in 2015 is $627 million, while
a building ready for occupancy in 2023 is estimated at $939
million.


4. Secretary-General recommends that the General Assembly
take note of this report, decide to continue with the CMP and
approve the recommended strategy IV for the CMP. The
Secretary-General also recommends that the GA decide to

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revert to the consideration of a comprehensive feasibility
study on building a permanent building on the North Lawn at
the sixty-first session and request the SG to report to the
GA on proposed terms of reference for this study at that
time. It is expected that ACABQ will endorse the first three
recommendations, but not the final recommendation to revert
to the issue of the permanent building.

BOLTON