AIChE's headquarters to remain in New York City

After a thorough examination of relocation options both within New York City and elsewhere, AIChE's governing Council decided that the Institute will relocate to another site within Manhattan. The decision was reached June 8 at the Officers' Conference in New Orleans. Several business and legal issues, as well as a desire for operational continuity, were factors in the decision.

The relocation decision was precipitated by the expected sale of AIChE's headquarters building, the United Engineering Center (UEC). The building is owned by the United Engineering Trustees, which is governed by representatives appointed by the five Founder Societies: AIChE; the American Institute of Mining, Metallurgical, and Petroleum Engineers (AIME); American Society of Mechanical Engineers (ASME); American Society of Civil Engineers (ASCE); and Institute of Electrical and Electronics Engineers (IEEE).

The decision to sell the UEC was made, in part, because of the age and inefficiency of the building, as well as the site's prime location-near the United Nations-in a currently booming real estate market. The sale and distribution of the proceeds to the five societies must be approved by the New York State Supreme Court.

AIChE commissioned a relocation study by Fantus Consulting, a division of Deloitte & Touche LLP, in March to analyze several potential site relocations and consider factors such as the recurring costs of labor, facilities occupancy, and travel, as well as the one-time expense of employee relocation, severance, recruiting, and training. Service and revenue disruptions during transition were also considered. Fantus has performed hundreds of relocation studies for corporations and associations (including ASME and ASCE).

"The current business and legal uncertainties surrounding successful completion of the sale and expected move by September 1998, the high initial cost of a move away from New York, and the potential disruption to staffing, member service, and pursuit of strategic initiatives were central to our decision to stay in New York," said AIChE President Thomas Edgar. He added that AIChE's Government Relations Office in Washington, DC, will remain at its present location.

A site location study-assuming leased space-is now underway, with options including colocating with ASME and/or other Founder Societies remaining in New York, as well as moving to a stand-alone site.