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State officials present capital complex updates; feasibility study finds 1313 Sherman conversion could cost ~$100M per project
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Summary
Department of Personnel & Administration and Capital Complex officials told the Joint Budget Committee the annex and security projects are nearly complete and that a feasibility study shows converting 1313 Sherman to housing and childcare could cost $91–$111 million in hard costs (about $1 million per unit after soft costs). Staff said the project may require state subsidies or a public‑private partnership and that final decisions would go to the Capital Development Committee.
State personnel and the Capitol Complex team updated the Joint Budget Committee on a slate of renovation projects and presented a feasibility study for the 1313 Sherman Street (Centennial) building during the committee’s full‑day hearing in Denver.
Deputy executive director Tobin Follandweinder and Richard Lee, division director for the Capital Complex, said security upgrades at the State Capitol are complete, the annex building at 1375 Sherman is largely occupied and being LEED‑certified, and the Capitol Micro Mart/Café is nearing completion with furniture delivery expected in 2026. ‘‘Capital security project is complete’’ and the annex ‘‘is substantially complete and occupied,’’ Lee said. The annex had a budget of $57,800,000 with about $54,900,000 invoiced to date, Lucas said.
The committee spent extended time on the Centennial (1313 Sherman) building. Tom Curek, the state’s public‑private partnership director, summarized a structural feasibility study completed in December that evaluated converting the office building to affordable housing and a childcare facility. Curek said the study estimated 111–147 affordable housing units could fit in the structure along with space for childcare, but that conversion hard costs were estimated at $91 million to $111 million and soft costs (financing, development fees) could push the per‑unit cost toward roughly $1,000,000.
‘‘The preliminary findings … you could get about 111 to 147 affordable housing units and a childcare in that building,’’ Curek said. He added that the study did not include parking wrap‑around costs or the expense of removing the building from the state electrical loop and connecting to a new transformer. Curek said private developers would likely need some state subsidy or other support to make the project economically viable.
Rank‑and‑file committee members pressed for more specifics. Curek confirmed the feasibility study cost the state about $181,000 and said the Capital Development Committee (CDC) was updated before the study began in September. Officials said any final plan would be brought to the CDC and the Joint Budget Committee for approval and that alternatives—such as moving state agencies currently in leased space into state‑owned buildings—remain under consideration.
Officials also told the committee that demolition and rebuild estimates are expensive: ‘‘If we were to knock it down and rebuild, it would cost $184,000,000,’’ Curek said. Deputy director Follandweiner said the department will provide a fair‑market value appraisal if the committee asks for it.
What happens next: Officials described the feasibility study as one data point; any conversion would require additional planning, a CDC decision, and likely a developer procurement. Committee members asked staff to return with additional numbers on market value, lease terms for agencies in leased locations, and possible cost‑sharing scenarios for a public‑private partnership.
Speakers (selected): Tobin Follandweinder, Richard Lee, Caitlin Lucas, Tom Curek.
Authorities cited: section 24‑30‑13‑14 (statutory reporting to the Capital Development Committee); Capitol Complex Renovation Fund (section 24‑30‑13‑13); references to Senate Bill 22‑239 and Senate Bill 23‑306 are documented in presenters’ remarks.
Timing: The presentation and Q&A began in the morning and concluded before the committee moved on to the Office of State Architect controlled‑maintenance briefing.
