Department of Administration recommends demolishing Centennial Office Building as part of statewide space consolidation plan

At a Feb. 25 House State Government Finance and Policy Committee hearing, Department of Administration officials told lawmakers their strategic facilities plan recommends demolishing the Centennial Office Building, consolidating tenant agencies onto the Capitol complex where possible, and exploring regional hub locations in Greater Minnesota.

The recommendation stems from a 2021 engagement with commercial real estate firm CBRE that resulted in a strategic facilities plan finalized and distributed to agencies in 2023. Assistant Commissioner Wayne Waslowski said the plan found "the building systems are at the end of their useful life," and evaluated whether the cost to renovate the Centennial Office Building is justified compared with relocating tenants and backfilling state‑owned space.

The plan frames space decisions around the agencies' business needs rather than a 1:1 staff‑to‑desk model. Department officials described new space standards that average 175 to 200 usable square feet per person and a shift toward shared or hoteling workstations with an approximate staff‑to‑seat ratio of 1.3–1.4 to 1. The department said agencies will prioritize collaboration, focus, and huddle spaces to match varying in‑office work activities.

Officials told the committee the department is prioritizing consolidation opportunities tied to private lease expirations and existing capacity on the Capitol complex. Deputy Commissioner Stacy Christiansen and Waslowski identified several candidate locations for backfilling, including space that could become available in the Transportation Building and the Anderson Building, which recently completed a fit plan for an occupying agency.

Commissioner Tamara Grunvall said the administration intends to submit a capital budget request in the upcoming session to fund demolition if the legislature and governor approve it. Lawmakers pressed department staff for additional information before any decision: Representative Jones asked whether the legislature would have to approve demolition; department officials confirmed a capital budget (bonding) request would be required and emphasized the competitiveness of capital investment dollars.

Members also asked for additional cost comparisons. Chair Nash requested that the department provide the committee with an analysis showing the relative costs of leaving the building vacant versus demolishing it. Representative Jones asked for the lifecycle cost comparison, noting the committee will consider the state fiscal forecast in March.

Committee members raised related questions about regional hubs, co‑locating with higher education, and parking. The department said it has been in regular communications with Minnesota State about potential co‑location opportunities and that regional hubs were a recommendation awaiting implementation. It also said the adjacent parking structure would remain and be maintained; the department plans landscaping to screen the structure if Centennial is removed.

Department officials said implementation will be staged over several years, driven largely by lease expirations, and estimated the space rightsizing effort to be a four‑to‑five year process. They reported that, to date, the enterprise has achieved more than 300,000 square feet of space reductions since 2020 and that additional opportunities remain.

Next steps identified during the hearing included the department submitting a capital request for demolition funding and providing the committee with requested cost and utilization data tied to lease expirations and potential backfill options.

Sources: Testimony of Tamara Grunvall (Commissioner), Wayne Waslowski (Assistant Commissioner), and Stacy Christiansen (Deputy Commissioner) before the House State Government Finance and Policy Committee on Feb. 25, 2025.