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Home » Benton REA breaks ground on new West Richland headquarters

Benton REA breaks ground on new West Richland headquarters

Benton-REA--rendering

Benton Rural Electric Association has broken ground on its future West Richland headquarters, which will help consolidate operations and put its crews closer to the bulk of its members.

Courtesy Benton REA
December 13, 2024
Ty Beaver

Moving Benton Rural Electric Association’s headquarters to West Richland was a no-brainer.

That’s according to Ryan Redmond, the utility’s chief executive officer. He was among Benton REA’s board members and West Richland city officials to celebrate the facility’s groundbreaking in October. The moment marked the end of years of planning by the association’s board to identify where to build the power provider’s next home.

“They wanted to make sure they were doing the right thing for the membership,” Redmond later told the Tri-Cities Area Journal of Business.

With nearly three-quarters of Benton REA’s 12,000 members and 64% of its work orders being in and around West Richland, moving the utility to the future headquarters is expected to bring quicker service times to most of its members, as well as create cost-saving efficiencies, among other benefits, Redmond said.

But an indirect benefit is what the project’s proponents also are excited about: more tax revenue for a burgeoning West Richland.

“We have some new commercial properties, but the daytime jobs and sales taxes will be a huge benefit,” said Eric Mendenhall, the city’s community development director.

Benton REA plans to build a complex of nearly 41,000 square feet, providing administrative space, a warehouse and enclosed vehicle storage space, according to a strategic decision paper issued by the utility in August 2024. The headquarters will be located at 2121 Cooperative Way, off Keene Road near the Tri-City Raceway and West Richland Police Department.

The total cost will be under $20 million, necessitating a 5% rate increase for members, or an average of an additional $7 on the average monthly bill.

“While we are looking at doing a rate adjustment to build this, in the long term we’re going to make up the difference with the investment," Redmond said. “It’s pay now to save later.”

Integrus Architecture of Spokane designed the project and Leone & Keeble Inc. of Spokane is the general contractor. Construction is expected to be complete by early 2026.

Beyond having administrative offices in Prosser, Benton REA currently has three other facilities spread throughout that community, as well as a facility in West Richland on Van Giesen Street. The Prosser buildings are outdated and don’t meet operational, safety or accessibility standards, according to the Benton REA document.

The current arrangement of facilities also has inefficiencies when it comes to distributing materials and crews across its service area, which covers parts of Benton, Yakima and Lewis counties. Consolidating to a single primary facility is estimated to save Benton REA between $1.4 million and $2.9 million per year.

Most staff will relocate to the West Richland facility but Benton REA will continue to maintain a field office in Prosser staffed with some operations crews and customer service representatives. The association has not yet finalized its plan for the remaining properties, but they could be sold or leased.

The association’s board examined every option when it came to determining how to best situate Benton REA to meet current and future needs, Redmond said. But with renovation of existing space being insufficient to meet the utility’s needs, relocating was the best decision.

Redmond acknowledged that having its sales taxes go to a municipality where it has the bulk of its operations is an indirect way to further benefit members.

Mendenhall said that new tax revenue will be able to go toward enhancing city services and keeping up with residential growth.

“We are super excited to have them here,” he said.

    Latest News Real Estate & Construction Local News Energy
    KEYWORDS December 2024
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