I think it's a pretty done deal at this point that the city is going to buy the old State Farm building, unless there's some sort of public backlash against it. That particular building next to the convention center makes so much more sense as a site of a convention center hotel. Especially given the Page Belcher Federal building won't be replaced anytime soon most likely, unfortunately.
The odd part is creating a 60 cell jail as well in the State Farm building. I've heard that GKFF wants to see the county jail downtown moved at some point too, so maybe this is part of a larger effort behind the scenes to ultimately get to that point. I wonder how this will impact splitting the municipal courts/city jail and the county courthouse/county jail to opposite sides of the city and having the police center not near the county jail either. The county courthouse needs to be replaced too sooner or later, it's way too small - I could see it being converted to a smaller hotel (similar to Aloft renovation to the old city hall). You'd have a pretty strong cluster of hotels around the convention center at that point. Just need some entertainment stuff closer by to win more events. Right now that part of downtown feels like a silo still and could use some more evening type of retail/uses to create a better connection to Blue Dome and Arts District. Right now if you want to grab lunch or an early afternoon drink from the convention center you've got a pretty good walk ahead of you to get anywhere with a decent cluster of options.
In the long run I think this will be beneficial to the city to move, rather than them putting lipstick on these buildings and keeping the entire area around the convention center as a civic cluster - there's probably a better space for it given the size and age of these buildings being fairly obsolete at this point and just allow this area to turn more into a entertainment district around the arena/convention center.
I do wonder why that transaction never happened (buying it for $10 million and leasing it back for a few years) - there's a large chunk of space in this building that's just sat vacant for years. I'm really shocked the postal service wants to hold on to this building. Seems like a land swap or something would entice the postal service to move into a more modern facility that is right sized - then build a new federal building for the courts. Maybe when the county courthouse is up for replacement they could just build a single federal/county courthouse somewhere. Not sure if I've seen any city do that, usually the federal courts are off by themselves.