The City Council Monday unanimously approved a move of around 400 municipal employees from one downtown office tower to another, which is expected to save between $5million to $7 million over the next five years.
The employees of the Public Utilities and Public Works Departments have been housed at 600 B St. for 22 years, but will move to 525 B St. in a couple of months.
The city this year paid $2.62 per square foot per month at the 600 B St. location.
Allen Jones, the city's deputy chief of staff, told the council that the final offer for an extension was $1.85 per square foot per month.
At the new site, the city will pay $1.25 per square foot per month, and utilize about 90,000 square feet, Jones said.
City Real Estate Assets Director Jim Barwick said the offices will be "more efficient'' and include more, and nicer, work space for individual employees.
Jones said the city's willingness to move has given it some leverage in negotiations with two other landlords. Mayor Bob Filner could announce extensions at those locations within weeks, he said.
