Human Services Building nears completion amid cost and construction fixes; county negotiating contractor charges

County project staff told supervisors on Monday that the Kenosha County Human Services Building is approaching substantial completion but that the project has required significant remediation and coordination.

"Construction is now in its final stage," the project presenter said, outlining mechanical, electrical, plumbing and finish work largely complete in most areas. The presenter added that earlier demolition and reuse work uncovered environmental conditions tied to a former dry-cleaning operation that required a passive vapor mitigation system, and that additional deficiencies—deteriorating roof decking, lead-based paint and exterior-envelope integration problems—were identified by an independent review.

From a finances perspective, the presenter said approximately $31,400,000 has been committed to design and construction through the end of May and about $2,500,000 has been expensed from contingency for remediation and additional work. Staff said the county has been building a Human Services Building fund—the county board approved a $1,100,000 transfer this year and $3.3 million over three years—to reduce the amount the county will need to borrow when the building is purchased after an initial five-year lease.

The county’s agreement with the building owner (identified in the presentation as the owner during the lease period) anticipates a lease with an option to buy at the end of five years; staff said if the county bought the building immediately the current purchase figure would be nearer the $32 million being discussed in the presentation. The presenter warned that monthly lease payments are influenced by total project costs and borrowing needs and therefore may be higher than early estimates.

Supervisors pressed staff on contractor accountability and whether change orders were the contractor’s responsibility. Staff said negotiations with the construction manager are ongoing and that CMA has agreed to contribute roughly $500,000 toward some of the change-order costs, but that additional invoice-level review and negotiation remains active and staff expect more clarity within a month.

County staff also clarified grant treatment: a neighborhood investment grant of about $10,000,000 from the state flowed through the county and was applied to project expenditures in the grant period. Staff said $10 million of the project cost was covered by that grant, though an earlier split agreement with the developer means grant proceeds will be apportioned per the sale terms rather than all returning to the county at project completion.

Officials stressed they are prioritizing remediation measures verified by the independent review and that move-in planning (a 437-item Gantt chart for relocation and commissioning) is underway with tentative move activities beginning in Q3 2026 and occupancy substantially complete by the end of that quarter.

The presentation closed with staff thanking project partners and noting that a final corrective-action plan from CMA is pending so the county can verify and implement necessary repairs prior to occupancy.