California launched a $1.2 billion Capitol renovation before the bust. Will it continue?

Before the recession, California lawmakers launched a $755 million makeover for the Capitol that would bring down the warren of offices attached to the historic building and replace it with a modern structure.

Add in a related construction project meant to give lawmakers temporary offices on O Street and the total endeavor was expected to cost about $1.2 billion, making it the biggest undertaking in a boom-times set of plans former Gov. Jerry Brown approved to replace long-neglected state government buildings around Sacramento.

Now, with the state facing a deficit estimated to run north of $50 billion, a group of historic preservationists mostly worried about the potential destruction of trees in Capitol Park is asking the state to halt the project. Its members argue the red ink brought by the economic standstill is an opportunity to rethink an expensive project.

“We are not a group looking to kill the project,” said Dick Cowan, one of the leaders of the group called Public Accountability for our Capitol. “We want it redesigned and we think we do need a pause. And that coincides nicely with a year where we’re going to scramble to pay for all of this.”

So far, lawmakers are not willing to consider the request, although it underscores the difficult decisions they’ll face in the coming months as they try to close the projected deficit.

Last year, the Legislature approved $3.5 billion for a year of spending on 200 capital projects, according to an October report from the Legislative Analyst’s Office. About $1.5 billion of that sum was expected to come out of the state general fund, which pays for education, prisons and social services, among other government programs.

Assemblyman Ken Cooley, D-Rancho Cordova, over years advanced the intricate plan to replace the 68-year-old structure known as the Capitol Annex.

The existing building has long been considered a health and safety hazard. A 2017 report painted a grim picture of a decrepit building lacking properly working toilets, insufficient exits and fire sprinklers.

Cooley insists the Capitol project is not one that will be delayed or suspended in the coronavirus-induced downturn.

“Maintenance of the current building’s antiquated and failing systems are costly, difficult to repair, and fail to provide the public with a safe and accessible venue to engage with their government,” Cooley said in an emailed statement. “The annex project has emerged from consideration of these perils by three administrations and, as it puts dollars into the regional economy, it will specifically address these vital health, life safety, accessibility and security deficiencies.”

Building with bonds

In 2018, Cooley led the way when lawmakers agreed to pay to bulldoze the annex and rebuild the offices. Construction blueprints call for a parking garage, a modern visitors center and a 200,000 square-foot annex expansion.

The replacement project involves temporarily moving the Legislature into a new $423.6 million government building located at 1021 O Street by the end of 2021. That building is already well underway. Lawmakers are expected to work there until 2025, when the annex is scheduled to be finished.

Cooley said the Capitol project is safe in part because the Legislature has authority to pay for it by selling bonds and repay investors over time. He added the sputtering economy might even lower the projected cost of the building because materials will become less expensive.

Historically, said Legislative Analyst Office analyst Eunice Roh, more than 60 percent of government building projects are paid for using bonds.

Lawmakers negotiating the budget over the next month could choose to save money delaying certain projects, according to H.D. Palmer, spokesman for the Department of Finance.

The ones that were expected to get under way around Sacramento include a $915 million government campus on Richards Boulevard and a $131 million renovation of the Gregory Bateson Building at 1600 9th Street.

During the economic downturn, the Legislature and Gov. Gavin Newsom could also consider bonds to pay for projects, Roh said, to “delay costs yet continue to build/maintain critical infrastructure.”

What about the trees?

Back at the Capitol Mall, the main opponents to the proposed legislative building are trying to buy time for trees.

Redwoods, a bunya pine and cedars stand on the site of a proposed parking garage, between the Capitol and N Street.

The Department of General Services’ environmental review says “as many existing trees as possible would be retained” during construction, but estimates 20 to 30 could be removed.

Advocates have guessed more than 100 trees are in peril.

Department of General Services spokeswoman Monica Hassan said the group’s fears are based on a misunderstanding of the plans.

“The concerns about the number of trees impacted appear to be based upon the unfortunate assumption that the entire area as shown in the (environmental impact report) will be the actual footprint used for the project,” Hassan said in an email. “Which is not correct.”

Eric Steinman, a Sacramento resident, said the parking garage clashes with California’s ambitious environmental agenda.

“California’s holding itself up as the leader in climate change and environmental protection, but when it comes to their own building, (lawmakers) will cut down 100-year-old trees with little regard for public use, public involvement and decision,” Steinman said.

Steinman said the plans for the garage are based on an assumption that legislators will still be driving cars to work in 50 to 100 years, which he said is “unrealistic.”

The Legislature’s Joint Committee on Rules has provided updates on the project during hearings in the last few years, with the latest on Sept. 6.

Cooley said the Joint Rules Committee is working with arborists and landscaping experts to “preserve as many trees as possible with the project footprint.”

“The committee has no intention of removing 100 trees within this footprint,” he said. “The JRC is undertaking painstaking efforts to carefully preserve as many trees as possible within the scope of the project.”

This story was originally published May 11, 2020 at 5:15 AM with the headline "California launched a $1.2 billion Capitol renovation before the bust. Will it continue?."