Costs climb for renovation of Minnesota governor's mansion
ST. PAUL, Minn. — The total cost for renovating the Minnesota governor's residence has significantly increased due to more extensive work than previously anticipated, a top state official wrote in a letter to lawmakers.
When construction began in June, the initial estimate to revamp the 111-year-old mansion on Summit Avenue in St. Paul was $7.1 million. Now the budget has grown to $12.8 million, Stacie Christensen, temporary commissioner of the Department of Administration, explained to legislative leaders.
She attributed the surge in price primarily to "more extensive replacement of mechanical, electrical, and plumbing system components than outlined in the predesign, along with additional security upgrade."
"This work to meet current code and life-safety requirements is necessary to complete if the facility is going to remain in use," she added. The story was first reported by MPR News.
She wrote to lawmakers that the department, which manages state-owned buildings, has enough in its Facilities Repair and Replacement account to complete the work without impacting other repairs on other state assets in process.
A spokesman for the state agency in an email said the letter was a notification to the legislature seeking their input; however, the department can proceed without further action from lawmakers, since state law authorizes its use of those funds.
"Legislative notification is standard procedure on construction projects and we would like their feedback on this significant project. The department has ensured that the legislature has been aware of the costs of this project from the beginning," Curtis Youkum told WCCO in an email.
The chair of the Governor's Residence Council, which is tasked with developing restoration plans, said in a separate letter to Christensen that the higher-than-expected bids are "not unique" to the residence, according to the expertise of members who have experience in architecture and facilities management.
He also noted costs for materials and labor have risen.
"We were alarmed that key structural and mechanical elements of the residence are in very poor condition," chair Amelious Whyte Jr. wrote. "In order to preserve the structural integrity and the viability of the building, significant heating, cooling, electrical, plumbing, windows and waterproofing improvements must be made to preserve the value and usefulness of the building."
Legislative leaders reacted to the update differently. Republican leaders raised concerns about the growing costs, while DFL lawmakers in charge at the Capitol said they trust the analysis of the council and Department of Administration.
"Based on the information provided by the Department of Administration about the condition of the residence, the bids that were received, and the unanimous vote by the Governor's Residence Council, I do not have concerns," House Speaker Melissa Hortman, DFL-Brooklyn Park, said in a statement.
Sen. Minority Leader Mark Johnson, R-East Grand Forks, said in an interview Wednesday that seeing the costs soar by 80% was "shocking" and he'd like understand the bidding process better.
"We need to be looking at this to ensure that taxpayers aren't taken by surprise at the end of the day. So let's figure out what the process is and if there's adjustments we need to do," Johnson said, though acknowledging that the department has discretion over spending on the project.
A spokesperson for Gov. Tim Walz's office would like the legislature's input.
"The governor's office is concerned about the increased costs and would like the Legislature to weigh in before the Department of Administration makes a decision to proceed with this project," the staff member wrote in an email.
During the remodel, Walz and his family are living in Eastcliff, a University of Minnesota estate that's typically home to presidents of the school. He was initially set to rent a Sunfish Lake home for more than $17,000 a month, sparking controversy, before moving to Eastcliff.
The home is a fraction of the cost at $4,400 a month and it's expected the family will remain there until next fall.
House Minority Leader Lisa Demuth, R-Cold Spring, in a statement said she sought additional information from the department about its efforts to keep costs under control for the project. She also noted that the price spike comes as there's a separate $500 million renovation underway for the State Office Building in St. Paul, where House members and staff have offices.
"These types of cost overruns go well beyond what's considered reasonable, and Minnesotans should expect that government is making every effort possible to keep projects on budget before accepting dramatic increases," Demuth said.
Senate Majority Leader Kari Dziedzic, DFL-Minneapolis, did not express the same concerns, deferring to the Department of Administration and the Governor's Residence Council's decisions on the renovation.
"Both the Department of Administration and the Governor's Residence Council have looked at this, and the Council unanimously approved the completion of this much-needed maintenance work and structural repairs," she said.
There are four areas of construction for the governor's residence, including the HVAC upgrades that are the biggest cost driver. Masonry restoration is on track to be completed by the winter, Christensen with the Department of Administration told lawmakers.