Senate finance committee advances $15 million supplemental for repairs to Charleston 'Diamond Building'

The West Virginia Senate Finance Committee voted to report House Bill 3347 to the full Senate with the recommendation that it do pass after hearing from the Department of Administration about needed repairs to the Diamond Building in Charleston.

Committee counsel introduced House Bill 3347 as a supplemental appropriation of $15,000,000 from the unappropriated surplus balance of general revenue to a new capital outlay repairs and equipment surplus appropriation in the Department of Administration, Division of General Services. The bill is single-referenced to the committee on finance.

Why it matters: The Diamond Building at 350 Capitol Street houses several state offices and roughly 850 employees, and administrators told the committee the facility has failing masonry, water intrusion and aging mechanical systems. Committee members pressed agency staff for details on the scope and whether the current request would cover all anticipated work.

Robert Kilpatrick, director of the Division of General Services, told the committee: “Part of that project part of the $15,000,000 request is $10,000,000 to fix the masonry facade and envelope of the building.” He said the agency had taken the building from the Department of Health and Human Resources on Jan. 1, 2023 and conducted a follow-up assessment that found “lots of problems with failing masonry, cracks in the masonry, water intrusion” including foundation water intrusion into the basement.

Kilpatrick described additional line items in the request: $3,000,000 “to address what’s probably going to be about $6,000,000 in HVAC improvements, life safety improvements, [and] new fire alarm system,” and a remaining portion of the $15,000,000 to address other needs identified in the assessment. He said the building’s original HVAC equipment dated to about 1999 and included “25 year old water source heat pumps” with problems controlling humidity.

Kilpatrick also told senators the development package that included the building in 1999 also created a 950-space parking garage nearby. An inspection of that garage found concrete spalling, drainage problems and other structural issues needing attention.

Senators asked practical questions about usage and funding. The senior senator from the thirteenth asked, “What are we spending $15,000,000 on?” Kilpatrick replied that the building “maxes at about 1,127. They’ve got 850 in there.” On funding, Kilpatrick said the Division of General Services has special revenue from rental income for state tenants and that the agency expects that revenue to cover other projects and about half of the HVAC work: “We’re projecting enough of the special revenue intake to cover our roof project… and then half of this HVAC project. So we would not have to come back for more supplement.”

The committee’s vice chair moved that House Bill 3347 be reported to the full Senate with the recommendation that it do pass. The committee conducted a voice vote; the chair declared the motion adopted.

The committee record shows the bill will be reported to the full Senate for further consideration.

Additional context: Committee counsel described the bill as a single referral to Finance. Kilpatrick identified the building location at the corner of Capitol and Washington streets and said the Division of General Services assumed control of the property on Jan. 1, 2023.