The Commercial Appeal

NPR’S new digs anger critics

Cost ignites fresh debate about funding

- By Paul Farhi

NPR’s gleaming new headquarte­rs building in the shadow of the Capitol in Washington has soaring ceilings, a 24-hour “wellness” center, an employee gym and a gourmet cafe staffed by a resident chef.

This, as it turns out, could be a political problem.

Open since April, NPR showed off the 4 0 0,0 0 0 -squa re -foot complex to members of the media. It immediatel­y began drawing some grumbles from those who see the edifice as far too luxe for a nonprofit radio and digital-news organizati­on that depends, in part, on taxpayer support. In effect, the building briefly became a new club with which to beat NPR over an old issue: whether public radio and television should be subsidized with federal and state funds.

“They build a ‘ News Palace’ and they still need taxpayer dollars?!?” tweeted Jim Farley, vice president of news for WTOP, the all-news radio station in Washington.

A blogger known as the Lonely Conservati­ve sniped, “Who wouldn’t be jealous of working in such a lavish space, especially when one’s tax dollars help to fund” it?

And Michael Savage, the fire-breathing conservati­ve radio host, took to his microphone to rail against the “incomprehe­nsible” nature of NPR’s new digs. “They just opened a new building, NPR,” sneered Savage on his syndicated show. “A new building they’re showing off how wonderful it is in Washington, D.C. You will not believe the edifice they built for themselves. It’s astounding. You cannot believe what they gave themselves at NPR. . . . How much money did that cost to build?”

Answer: $201 million, or a bit more than NPR’s annual operating budget of $174.7 million in fiscal 2013. But is that excessive? In NPR’s view, the new building on North Capitol Street is both efficient and cost-effective, particular­ly compared to its former headquarte­rs on Massachuse­tts Avenue.

NPR, with 840 employees, said it had outgrown the old building, which was costly to maintain. The building is now being torn down.

“The reality is, we had to move,” said Emma Carrasco, NPR’s chief marketing officer, in an interview. “When we looked at the possibilit­y of retrofitti­ng our existing buildings and consolidat­ing into the old headquarte­rs, it really wasn’t feasible. So building a cost-effective building was the most prudent decision for us. We based it on pure economics and our staffing and technologi­cal needs.”

What’s more, NPR officials point out, the new headquarte­rs wasn’t financed with tax dollars, at least not directly.

The organizati­on raised funds through a combinatio­n of tax-free bonds, individual donations and the proceeds from the sale of its old building.

In addition, the District granted NPR $40 million in tax abatements and froze property taxes on the site for 20 years to keep NPR from leaving the city.

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