Mayor Ron Gonzales says that the higher price tag will still be a lower cost than leasing the scattered spaces currently occupied by staffers. Under Measure I, which passed in 1996, a rebuilt City Hall cannot cost more than the city would save from eliminating the separate spaces it now leases.

Construction is slated to begin next year on the proposed 19-story, 500,000-sf tower and adjoining plaza. The complex will sit at the intersection of Santa Clara and Fourth Streets. It will bring together staff members now scattered in different buildings. The current city hall on Mission Street can house only one-third of its employees.

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