MINNEAPOLIS — The work to renovate the Minnesota Governor's Residence will cost far more than originally projected, if the current set of bids are approved.
The bids for mechanical, electrical, HVAC and plumbing work needed to bring the 1912 mansion up to code will bring the total cost of the project to $12.8 million, according to the Governor's Residence Council. That compares to original estimates of $7 million.
In addition to bids being higher than expected, more electrical and mechanical systems need to be replaced in order to meet modern building and fire safety codes.
"In pre-design, you have a very high-level, overall look at systems and ask what are ways we can save cost. We were hoping to not have to replace all the electrical, mechanical, piping that goes into the interior spaces, which are difficult to access behind plaster walls," said Wayne Waslaski, a deputy commissioner at the Dept. of Administration, the agency that manages all the state's property, including the Residence.
"As the design progressed, we were able to get in and do destructive testing, open up those areas and get access to that cabling and piping. And really then we made the decision that you can’t keep that in place. You have to meet current building codes. You’re going to have to replace all that."
Waslaski says doing that work will require construction crews to remove more of the mansion's plaster walls and then bring in specialized craft tradespersons to restore them to match the rest of the historic structure.
"That’s a primary driver of this cost difference, the notion you’re going to have to open up things a lot more significantly, get into the plaster walls, replacing all that piping, all that electrical cabling, as well as the boiler systems," Waslaski explained.
"We were hoping some aspects would have additional useful life, but there's been so much deferred maintenance over the years on this facility it's in need of wholesale replacement."
He said they've had to navigate supply chain disruptions, part of the lingering legacy of the COVID-19 pandemic. And contractors have a lot of jobs to choose from right now. So, the bidding wasn’t as competitive as it normally would be.
The cost change doesn't have to go to the Legislature for approval, because there's enough in the Dept. of Administration's repair funds to cover the difference. But Gov. Tim Walz says he's concerned about the size of the cost spike and has asked legislative leaders to weigh in on it.
House Speaker Melissa Hortman and Senate Majority Leader Kari Dziedzic both agree the project needs to be finished the right way and meet code. Republican House Minority Leader Lisa Demuth says she still has more questions about what went wrong.
The contractors say they'll need to lock in agreements this week in order to lock those prices into the contract. The price tag could go even higher if the state presses pause and shops around for lower bids.
The only part of the job that has started is the exterior masonry work, which began in late July. On Tuesday, masons could be seen tuck pointing and repairing mortar joints on the brick structure.
"It's making sure the heating and cooling work, and electrical systems work, and obviously it’s a state facility, with multiple state functions, security systems, modern security systems," Waslaski added.
"So, this project is really focused on building infrastructure and bringing that up to today’s standards really with the intention this home is going to be available for multiple generations to come, for future governors to use."
Gov. Walz and his family have temporarily moved into the University of Minnesota chancellor's residence, which the Minnesota Dept. of Administration is leasing from the U of M until the restoration work wraps up at the Governor's Residence.
The Governor's Residence was built originally for lumber baron Horace Hills Irvine in 1912. His descendants donated it to the State of Minnesota in 1965. Since then 10 different governors have lived there.
There is support in some corners for selling the mansion or donating it to the Minnesota Historical Society, rather than spending money to bring all of the systems up to standard. The money saved could, in theory, pay for a brand-new residence.
Waslaski said the building is unique in that it's open to the public for special events and yet must serve as a highly secure residence for the state's chief executive.
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