BlueCross proposes $200 mil. consolidated office complex

Email | Print By Paige Orr

11-11-2004 4:22 PM — BlueCross BlueShield of Tennessee has said it wants to consolidate nine of its Chattanooga office buildings into an office complex that would cost a total of $200 million.

The state’s largest health insurance company has worked with the development firm Kinsey Probasco Hays to buy the 48-acre Cameron Hill site downtown, where an apartment complex currently is situated. The land acquisition cost is about $15.5 million, according Bill Steverson, spokesperson for BlueCross. Steverson added that the office buildings would cost an estimated $105 million.

Construction will begin in early 2006, pending property tax incentive approval by Chattanooga City Council and Hamilton County Commission.

BlueCross estimates day-to-day efficiency could increase, resulting in more than $3.5 million in annual savings.

Regarding the vacancies BlueCross could leave in its current office buildings, Steverson said the organization is working with the chamber and other groups on a developing a smooth exit strategy. “Most of the downtown buildings we occupy can be converted to residential with retail on the ground floor,” he said.

Separately, the Chattanooga Times Free Press has reported that if Gov. Phil Bredesen moves forward with plans to dissolve the state’s TennCare program and return to Medicaid, BlueCross could become the sole administrator, replacing the seven different TennCare plans.