"The purchase of the investment property has allowed us to urgently relocate a number of staff, therefore providing council with adequate time to scope, plan and construct any proposed and approved changes to the Queen Street Local Government Centre," council chief executive Stuart Duncan said.
"We are considering the relocation of up to 12 staff, however the building at Gorge Rd could possibly accommodate double that number."
The council spent $387,000 on the property, which Mr Duncan described as an investment "which effectively transfers funds held in low interest-bearing accounts into bricks and mortar".
"The growth in value of the investment property would reasonably be expected to outweigh the returns from regular bank deposit investment given the present economic climate and low interest rates."
The purchase was paid for from accumulated reserve funds, predominantly from a subdivision development at Eric Batchelor Pl.
The Queen St headquarters housed 40 staff and had not had an upgrade for the past 40 years.
The need for more floor space became "critical" late last year, a statement from the council last week said.
The council’s long-term plan 2018-28 included a provisional sum of $1.4million, with $100,000 for scoping and design, for the upgrade of the library and refurbishment of the headquarters "which will displace a number of staff and require alternative office space while building work is undertaken".
Water, wastewater and stormwater field operations are provided out of the council’s building in Michael St, and parks and gardens field operations were delivered through its facility in Tennant St.
Councils across the lower South Island are dealing with upgrades and overcrowding issues.
The Waitaki District Council bought the building next door to its Thames St headquarters.
Waitaki Mayor Gary Kircher said the purchase solved the current overcrowding at its headquarters for the "medium to long term", while in the short term 22 staff would work from leased office space in nearby Tees St.
In Gore, a $5million upgrade of the Gore District Council’s main administration building has been on the books since 2009.
Late last year, the Otago Daily Times reported a new multi-million dollar multipurpose "community hub" in Balclutha would include office space for Clutha District Council staff.
In June, the ODT reported the Queenstown Lakes District Council had approved a partnership agreement with Ngai Tahu Property Limited to develop one side of Stanley St, from Shotover St to Beetham St, to create a "central Queenstown community precinct" which would include a new council building.
The Otago Regional Council has spent almost $10million over more than a decade searching for a new base, saying it had outgrown its Stafford St site.
