For years, Pittsburghers have visited 300 Liberty Avenue Downtown to get birth and death certificates, to take civil service exams, to renew driver's licenses and to avail themselves of a host of other services offered by the state.

But those days soon will be coming to a close.

Commonwealth employees have begun moving out of the State Office Building as part of the controversial $4.6 million sale of the 16-story structure to River Vue Associates LP, an affiliate of Washington County developer Millcraft Industries.

By Feb. 8, nearly 800 workers should be relocated to one of three other buildings Downtown - 11 Stanwix Street, the Chamber of Commerce Building on Seventh Avenue, or Piatt Place, the former department store at Fifth Avenue and Wood Street owned by Millcraft.

So far, 281 employees from half a dozen departments have moved, all of them to 11 Stanwix, the former Westinghouse building. Another 514 from more than a dozen departments are to follow, either to Stanwix, the Chamber of Commerce Building or Piatt Place, before Millcraft completes its purchase of the State Office Building on or before March 1.

The moves could end in furloughs for as many as 15 employees in custodial or maintenance positions, General Services Secretary James P. Creedon said yesterday. Mr. Creedon said he had hoped to avoid layoffs but has been unable to do so because of deep cuts in his budget and that of the state.

"This is the hard, cold reality of a very difficult budget," he said.

The sale has drawn the fire of state Auditor General Jack Wagner, who has clashed with the Department of General Services over the merits of the transaction.

Citing the findings of a special investigation, Mr. Wagner said taxpayers will lose nearly $55 million in the sale, the difference between the expense of the leased space ($220.8 million over 30 years) versus the cost to refurbish and maintain the State Office Building ($166.2 million), the option he favored.

Mr. Wagner yesterday called the furloughs "very unfortunate." He also said the move of state offices from one location to three others "will be very confusing to the average citizen" but conceded that little can be done at this point.

"Absent a miracle, it appears as if the administration of state government is getting its wish to decentralize and to permanently cost the taxpayers more monies going forward," he said.

The Department of General Services has disputed the auditor general's findings, arguing that the sale actually would save taxpayers $14 million by not having to renovate or operate and maintain the building, opened in 1957.

Ed Myslewicz, General Services spokesman, said the state will avoid spending nearly $65 million to refurbish the building and at least another $2.5 million to $3 million annually in operation and maintenance costs. He said the leases will cost the state about $5 million a year.

Supporters have maintained that the sale also will benefit taxpayers by putting the State Office Building on the tax rolls and help Downtown by filling space in other structures.

Mr. Myslewicz said nearly all of the moves are taking place on Fridays, with offices reopening at their new locations on Mondays, to avoid disruption as much as possible.

"Fridays usually are not as busy as other days of the week. The intent was to get the agencies moved Friday and in their new locations Monday morning," he said. "So far the moves have gone very well. We don't anticipate any major problems. Everything still is on schedule."

The relocations are being handled by George Weaver & Sons of New Cumberland, Pa., at a cost of $129,087 to the state.

Millcraft intends to use most of the State Office Building for other purposes, perhaps condos, apartments, or hotel rooms, along with retail space. A small amount of office space could remain, said Lucas Piatt, Millcraft executive vice president.

"The majority of the building will not be an office building. It will be a mixed adaptive reuse," he said.

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