The U.S. Postal Service will not offer the first full-size, $14-million contract to replace a former department-owned postal building in Detroit.
The agreement will come after a series of meetings and negotiations between members of the Postal Service board, the U.S. Department of Justice and the Department of Environmental Protection, according to a release.
The Postal Service will replace the office building at 3126 W. Broadway at 2117 W. Michigan Street in Detroit, the announcement said.
The department is also asking that the U.S. Postal Service upgrade a $17 million parking garage. The garage has only two full-size units.
Earlier this month the city of Detroit agreed to move a building for the Postal Service building and purchase the building. The city plans to buy the building for about $11.7 million in April. The Postal Service will remain committed to purchasing the building for about $27.5 million and buying it for about $25.5 million, according to the city’s website.
Pentagon press secretary Peter Cook said at a White House press briefing on Wednesday that the Postal Service has not yet been offered a full plan for a massive overhaul of its office building. He told reporters that “it will still be open to some degree over time.”
According to the Postal Service website, the building will serve as a permanent fixture and will eventually be rezoned and converted into three new office buildings on the east side of the building.
The site includes a gym, a library, a cafeteria, a gym bus stop and a warehouse and shopping center, according to the website.
The building has been under contract for 14 years and it has a lease at a fixed amount of $19 million in 2014, the website said.
The Postal Service is still seeking funding for construction from a private-public partnership. That plan includes some $300 million in costs, according to the city’s website.
A spokeswoman for the Detroit mayor did not immediately respond to a request for comment on the announcement.