Mobile officially opened a new $92 million, six-story office building Monday, marking a major milestone for downtown development and the U.S. Army Corps of Engineers.

Under a long-term lease agreement, the building—located next to the future Mobile Civic Center Arena—will house more than 650 Corps employees, with capacity for up to 800. It will serve solely as the Corps’ Mobile District Headquarters.

Despite federal budget uncertainty, officials emphasized the Corps’ presence in Mobile is secure under the approximately 20-year lease with the building’s owner, FD Stonewater of Arlington, Va.

“This district has been in business for a long time,” said Claiborne Williams, principal and co-founder of FD Stonewater, noting the Corps’ Mobile roots since 1888. “They have a large area that they take care of. I don’t see a lot of risk of their operation being defunded and not being able to support their mission.”

Still, the lease renewal ultimately depends on annual congressional appropriations, a process U.S. Rep. Shomari Figures warned is increasingly uncertain under President Donald Trump’s administration.

“It’s an enormous deal not only for Mobile but for the mission of the Corps of Engineers so it shouldn’t get caught up in political funding battles every single year,” Figures said. “Unfortunately, that seems to be where we are headed, especially with the current administration. But at the end of the day, we’ll go to work and fight for full funding for this building and the Corps.”

Concerns about future funding were fueled earlier this year by the Department of Government Efficiency, or DOGE, led by businessman Elon Musk.

DOGE had called for canceling some Corps leases, including one allegedly in Mobile that would save around $3.6 million over five years.

However, a March listing on the agency’s website didn’t mention either the new 180,000-square-foot building or the previous headquarters on St. Joseph Avenue, leaving Corps officials uncertain about what, if anything, had been cut.

Mobile Mayor Sandy Stimpson expressed confidence in the investment and in the Corps’ role in the region.

“Their footprint is big,” he said. “There are so many things that are of huge importance that you’ll always see the Corps driving in this area.”

The new building was unveiled during a morning news conference and public tours. All employees have officially moved in, vacating the Corps’ former headquarters of 50 years.

“Our people deserve this modern office building so they can continue to deliver for this region,” said Col. Jeremy Chapman, commander of the Corps’ Mobile District.

“Our internet is working, the furniture is in, and the computers work so it’s mostly done,” Chapman said. “Everyone is excited to get in here and get back to work.”

The project has been under construction since 2023 after approval from the Mobile City Council. Adjacent to the building is a new $38 million, 1,000-space parking garage that is mostly complete except for the installation of security cameras.

The city-owned parking garage will be available for use by both the public and the U.S. Army Corps of Engineers (USACE), which has reserved over 150 spaces. The facility will be operated by the Oak View Group (OVG), the same company contracted to manage the future Civic Center Arena.

The arena, a major project with an estimated cost of approximately $300 million, is currently under construction. According to Mayor Stimpson, the building is expected to “go vertical” in August or early September—meaning the structure’s exterior walls and framework will begin to rise.

The arena is slated to open in early 2027 and will host a variety of events, including hockey games, concerts, and Mardi Gras balls.

Stimpson said it was vital to have the parking deck built early to accommodate the future arena. He said the USACE building represents having an “anchor” within the area.

“The Corps of Engineers was the right tenant at the right time,” he said.

The 22-acre development, when completed, is expected to connect with the city’s waterfront.

Stimpson called that project a longer-term vision, that likely will not play out until a future Interstate 10 bridge is built as part of a massive $3.5 billion new interstate and Bayway connecting downtown Mobile to Daphne.

“Once that is completed, there will be additional greenspace available,” Stimpson said. “But I would think that’s probably 10 to 15 years out.”