The Detroit Water and Sewerage Department (DWSD) is considering moving its operations from the historic Water Board Building downtown, after recent inspections uncovered significant structural damage and repair costs estimated between $30 million and $40 million. Director Gary Brown informed the Board of Water Commissioners at a Sept. 16 meeting that a decision is expected by the end of the year on whether to fund the extensive repairs or relocate the department.

The costly issues came to light during routine tuckpointing and tile replacement work on the building’s upper floors. Contractors discovered that the structure began "literally to fall apart as they touched it," with bricks shedding as work commenced, according to Brown. Deputy Director Sam Smalley confirmed that no building material has fallen onto the street. Repairs to the upper floors alone are anticipated to cost at least $20 million.

Beyond the recent structural findings, the building has other long-standing maintenance needs. A 2018 assessment identified millions of dollars in deferred maintenance, including necessary repairs to its elevators, roof, and ventilation system. Brown also noted that the nearly century-old building currently lacks a fire suppression system. Furthermore, around the start of the year, a streetscaping project on Randolph Street caused damage to the roof of the building’s basement, which extends beneath the street, leading to the main entrance being barricaded ever since. Brown stated he expects the basement damage to be repaired in the next few months. Smalley did not provide further details on the extent of the basement damage.

DWSD employees have been working remotely since Aug. 31 due to ongoing maintenance and inspections. They were originally slated to return on Sept. 21, but remain out of the office. Director Brown emphasized the need to decide if investing the substantial amount in a building "that no one believes we should be in for the next 20 years" is truly in the department's best interest. The department has land it owns and has previously considered constructing a new headquarters. The Great Lakes Water Authority (GLWA), which occupies 10 floors of the Water Board Building, is expected to participate in discussions about the building’s future.

The 23-story Water Board Building holds historical significance for Detroit. A report prepared for the Historic Designation Advisory Board described the Louis Kamper-designed edifice as "Detroit’s premier example of a commercial building" in a simplified Art Deco style. The damaged penthouse, in particular, is noted for its distinctive terra-cotta tiles and decorative, set-back design, adding to the building's architectural legacy.