I Don’t Think It’s April 1st Today . . .

There is open speculation that the City may be selling its iconic Municipal Building:

Speculation is heating up that the Municipal Building, the soaring limestone landmark that overlooks City Hall, could be among the government real estate assets to be sold off and converted to residential buildings as municipal employees prepare to move into a new, privately managed office building planned for ground zero.

The Municipal Building at One Centre St., the home of the Department of City Planning at 22 Reade St., and another large office building overlooking Foley Square at 2 Lafayette St. are among the assets whose sale is under consideration, according to a source familiar with the process.

In September, Mayor Bloomberg penned an agreement with developer Larry Silverstein to take 600,000 square feet in Tower 4 at the former World Trade Center site as early as 2013. Mr. Bloomberg said at the time that the city could sell off some real estate assets, which could be developed or converted into residential buildings. Mr. Silverstein has the right to cancel the deal between now and September 2008 if he finds a tenant that would pay more than the city’s offer of $56.50 a square foot a year in rent.