Bloomberg is reporting that Citibank is planning to spend at least $3.2 million for basic construction, and as much as three times that much after architects fees and other expenses are paid, to renovate the executive offices at the bank’s Park Avenue headquarters.

According to Bloomberg, Citigroup said the project will help it save money over time, as part of a space saving measure.

“Senior executives in our corporate headquarters are moving from two floors to smaller, simpler offices on a single floor,” the company’s statement said. “Based on estimates made when the project was initiated, we expect to generate savings in the next few years well in excess of the project costs.”

The project was initiated in June, before the whole global economic meltdown thing really got going.

The new executive suite will be located on the second floor of Citigroup’s office on 399 Park Avenue, a floor below the one Pandit, 52, inherited when he took over as CEO from Charles “Chuck” Prince in December 2007. The second floor previously contained offices, which are being demolished, as well as boardrooms and executive-dining quarters.

Plans and instructions for the bank’s contractors, on file with the city, specify the installation of at least one Sub-Zero Inc. refrigerator and icemaker in the renovated space, along with “premium grade” millwork and Madico Inc. “Safety Shield 800” blast-proof window film. The project encompasses 17 private offices, each with space for administrative assistants, as well as two conference rooms and open areas with “soft seating,” according to the plans.

Should we freak out about this?

Citigroup May Spend $10 Million for Executive Suite (Update1) [Bloomberg]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.