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Administration recommends demolishing Centennial Office Building and renovating Transportation Building to consolidate staff
Summary
The Department of Administration recommended demolition of the Centennial Office Building (estimated renovation cost over $250M) and $22 million to renovate the Transportation Building so displaced tenants can be relocated and the Capitol complex consolidated.
Tamara Grenfell, commissioner of the Department of Administration, told the committee that the Centennial Office Building is nearly 70 years old, in poor condition and beyond its useful life. Admin argued renovation would likely exceed $250 million and recommended demolition and site preparation funded this session, including hazardous materials abatement and interim site work.
Assistant Commissioner Wayne Waslowski told the committee that demolition funding would include abatement and site preparation to convert the parcel to interim green space while long-term redevelopment is planned. "It will essentially turn the space into temporary green space as an interim use until there's future development," Waslowski said.
Admin also requested funding to reconfigure space in the Transportation Building to accommodate the Transportation Department and to relocate Centennial tenants such as Minnesota Management and Budget, the Office of the Legislative Auditor and the Campaign Finance Board. Grenfell described a $13.4 million Admin portion and additional Transportation Department funds bringing MMB's estimate toward $22 million total for the renovation.
Commissioners and senators asked about funding sources, the use of trunk highway funds for elements of the Transportation Building work, and whether renovation would primarily shrink MnDOT's footprint while creating multi-tenant space for other agencies. Admin said the Transportation Building had not been remodeled for multi-tenant use and that the project aligns with the state strategic facilities plan and recent executive orders on in-office presence.
Admin requested $5 million per year for the Capital Asset Preservation and Replacement Account (CAPRA), noting only about $127,000 remained in the account and that CAPRA funds support emergency repairs and hazardous-material abatement in state buildings.
