Sault Ste. Marie's Public Utilities Commission (PUC) is building a new headquarters.
Their current Queen Street space is considered too cramped and renovation costs are considered too high compared to building a new structure.
Work is starting on design and cost estimates for a new building on Second Line, next to their service centre.
With more than 92,000-square-feet of space with new offices, vehicle and equipment storage, and general operations, the new building with be finished by 2012 and cost $20.5 million.
The new headquarters will also be built to energy efficient LEED silver standards.
The current downtown PUC building will be sold.